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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 Equity markets took a breather today after rising 5.6% in the last 6 trading sessions. Nifty closed on a flat note at 23,669 (+0.04%). The US market ended with gains on Monday due to President Donald Trump's softened stance on tariffs, while the Asian markets showed a mixed performance at today’s close. The broader market witnessed profit booking as Nifty Midcap100 and Smallcap100 indices fell by 1% and 1.6% respectively. There is heightened uncertainty among investors regarding the US reciprocal tariffs. On one hand, there are expectations that Trump may scale back some of his broader tariffs planned to be imposed on India; while on the other, there are latest threats from him to impose 25% “secondary tariffs” on countries such as India and China that import oil from Venezuela. This led to a surge in Brent crude prices, which negatively impacted the stocks of domestic oil companies, pushing the Nifty Oil and Gas Index down by over 1%. Nifty IT ended higher by 1.3%, mirroring gains in the tech-heavy US Nasdaq Index. Private banks managed to close in the green as the RBI announced changes in the Priority Sector Lending (PSL) norms which would help banks to manage their PSL portfolios more effectively. These RBI measures are likely to be positive for the banking sector as a whole, with private banks being the largest beneficiaries of the same. The market managed to close in the green for the seventh consecutive trading session on Tuesday, which suggests there is continued buying interest in domestic equities. We expect the market to continue with a gradual up-move on the back of FII inflows, strong INR and positive cues from US market.

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