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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 staged a sharp rebound on Monday after the broad-based selling in the previous two trading sessions. Nifty50 ended with gains of 228 points at 24,947 (+0.9%); backed by resilience in US equity futures which traded on a flat note, awaiting further details on the ongoing hostilities between Israel and Iran. Oil prices opened higher but failed to sustain above $75 per barrel mark, despite Israel attacking some of Iranian oil and gas facilities. Broader market witnessed strong buying interest with Nifty Midcap100 and Smallcap100 rising 0.9% and 1% respectively. Amongst sectors, IT was the top performer, surging 1.7%; driven by hopes of rate cut by the US Fed. Realty, Oil & Gas and Metal indices followed with gains of over 1% each. Real estate stocks climbed after PSU-bank major SBI announced 50bps cut in home loan rate, following RBI’s repo-rate cut earlier this month. Shares of oil marketing companies (OMC) recorded strong gains after Brent crude prices dropped below $74 per barrel. The positive uptrend in the Oil and gas sector was further fuelled by the rise in the shares of gas distribution companies after reports suggested possible revision in electric vehicle (EV) policy including a relaxation in the timeline for transitioning from petrol and gas-powered vehicles. On the macro front, investors would be closing following Bank of Japan’s interest rate decision and US May retail sales data to be released later on Monday. We expect the market to remain watchful, tracking global cues and macro-economic data. Defence and crude-linked stocks will remain in focus amidst ongoing Israel-Iran conflict , while monsoon-linked sectors like fertilizers, agro-chemicals, rural FMCG amongst others could be in momentum on expectations of above average rainfall.      

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