Daily Market Commentary : Indian Equity Markets witnessed a sharp decline with Nifty50 plunging by 1.9% to close at 22,125 level Says Mr. Siddhartha Khemka, Motilal Oswal Financial Services Ltd
Below the Quote on Daily Market Commentary by Mr. Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Indian Equity Markets witnessed a sharp decline with Nifty50 plunging by 1.9% to close at 22,125 level. The fall was majorly on account of weak global cues after several comments from US President Trump on levying additional tariff on China and nervousness ahead of India’s GDP data. The Q3 GDP growth for India, which was released post market hours; came at 6.2% in-line with market expectation and an improvement from 5.4% in Q2. This is expected to provide some relief in the current volatile environment. The broader market continued to face heavy selling pressure with Nifty Midcap100 falling by 2.5% and Smallcap100 down 3%. On the sectoral front, Nifty IT was the biggest loser, declining over 4% after the release of a weak US Q4 GDP which grew at a slower pace of 2.3% on an annualized basis compared to 3.1% growth reported in the September quarter. Donald Trump reaffirmed 25% duties on imports from Canada and Mexico to come into effect from 4th March. He also stated that goods from China will be subject to an additional 10% duty and mentioned that 25% tariffs on EU will be announced soon, heightening fears of trade war. Further, weak INR and continued FII selling extended pressure on the domestic market. Nifty has fallen almost 6% in Feb, its fifth consecutive month of decline. We expect market to continue to trade with weakness due to weak global sentiments and lack of domestic triggers.
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