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

Nifty declined sharply, ending 320 points lower at 23,025 level (-1.4%) pressured by consistent FII selling, uncertainty around Trump’s tariff policies and weaker than expected Q3 results by several companies. Broader markets witnessed heavy selling pressure with Nifty Midcap100 and Smallcap100 indices shedding over 2% each. All sectoral indices ended in the red with Nifty Realty being the top loser, declining over 4% on account growth concerns and uncertainty regarding the start of interest rate cut cycle by the RBI. FIIs sold equities worth 4,337 crore on Monday, leading to more than 50,000 crore outflows for January till date. Donald Trump’s remarks targeting BRICS nations, reiterating his intention to impose 100% tariffs on countries reducing their reliance on the US dollar for global trade, induced negative sentiments in the Indian market. Global markets are also intimidated by expectation of an interest rate hike by the Bank of Japan (BOJ) in its upcoming decision on Friday which could impact borrowing costs globally. We expect markets to remain under pressure in the near term amid mixed quarterly earnings and heavy FPI selling. Investors will closely track the Q3 earnings of heavy-weights like HDFC Bank, HUL, BPCL to be announced tomorrow. Midcap IT stocks will be in focus as Coforge and Persistent systems also announce their results tomorrow.

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