IGI Logo

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

Indian benchmark indices remained in consolidation mode for second day in a row as markets awaits for US trade deal outcomes. Nifty50 index pared early gains and ended marginally higher by 25 points to close flat at 25,542, up 0.1% on Tuesday. Broader market indices also saw muted action and slipped into the red, with the Nifty Midcap100 and Smallcap100 snapping their seven-day winning streak. On the sectoral front, FMCG, media, power shed between 0.4-1.3%, while PSU Bank index continued its positive momentum and extended gains for the second straight session. Defence stocks continued to remain under focus with Nifty India Defence Index rising by over 0.5% today and has gained more than 3% over the past four sessions. Post NATO members agreed to raise their defence spending, Brazil has expressed keen interest in buying advanced missile defence technology from India. India’s manufacturing PMI rose to 58.4, up from 57.6 in May, the third month of strong performance this year. The quarterly outlook for manufacturing appears positive, with the average PMI reading for the June quarter rising to 58.1 from 57.4 in the January-March period, signalling sustained momentum in factory output and domestic demand. Globally, market participants await the US PMI and Fed Chair Powell’s comments for cues on future rate direction, lined up later on tuesday, especially as the dollar hovers near three-year lows—strengthening the case for a possible rate cut. Markets are likely to remain firm, supported by strong institutional flows and policy support. Post the Auto numbers, attention will also shift to Q1 business updates from various banks and FMCG companies which are expected this week. 

Above views are of the author and not of the website kindly read disclaimer