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Below the Quote on Daily market commentary by Mr. Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities gained for the second consecutive session, with Nifty50 rising 148 points(+0.6%) to reach the 25,000 mark. Market sentiments were buoyed by positive global cues after US President Trump deferred the proposed 50% tariffs on the European Union till July’25. Additionally, investor optimism was boosted by NITI Aayog’s update on India surpassing Japan to become the fourth-largest economy globally. The broader market witnessed continued buying interest, with Nifty Midcap100 and Smallcap100 gaining 0.7% and 0.4% respectively. On the sectoral front, Auto and IT indices were the top performers, rising over 1% each. The Nifty India Defence index extended gains for the third consecutive day, supported by expectation of strong order-book for defence manufacturers amidst sustained demand. Fertilizer, Agrochemical, FMCG, Auto and rural finance sectors would remain in focus due to the early onset of the monsoon and forecasts of above-average rainfall. Both FIIs and DIIs were net buyers of over Rs2,000 collectively on May 23rd, supporting the firm market trend. The RBI announced a record dividend of Rs2.69 lakh crore to the central government for FY25, up 27% from Rs2.1 lakh crore in FY24. The dividend would significantly boost the government's finances and help in maintaining the fiscal deficit target for FY26. The dollar index has been falling for three consecutive sessions, trading near its one-month low levels which could increase foreign capital inflow in emerging markets like India. Overall, we expect Indian equities to continue its gradual up-move on the back of strong domestic macros and supportive global market trends.

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