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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 rebounded on Tuesday after hitting a seven-month low, as Nifty closed 90 points higher at 23,176 (+0.4%). Broader markets outperformed, as Nifty Midcap rose 2.5% and Nifty Smallcap advanced 2%. Gains were fuelled by banking, auto, and energy stocks. IT stocks were under pressure after weak Q4 outlook given by HCL Tech which fell more than 8%.  On the macroeconomic front, wholesale price inflation increased to 2.37% in December, up from 1.89% in the previous month. Foreign Institutional Investors (FIIs) extended their selling spree, offloading ?4,893 crore, while domestic investors provided support with net purchases of ?8,066 crore. Positive domestic factors included a decline in retail inflation to 4-month low of 5.2%, IIP growth improving to in Nov’24 to 5.17% and the RBI Governor's indication of a more flexible rupee policy, contributing to improved market sentiment. While there is a short-term relief in the market, overall weak global cues, fall in rupee, low earnings growth and FII outflows continue to weigh on sentiment, keeping the overall outlook cautious.

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