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

Benchmark Nifty50 ended higher by 100 points at 25,103(+0.4%), driven by upbeat market sentiment following RBI’s aggressive rate cut and positive global cues supported by strong U.S. jobs data and optimism ahead of US-China trade talks in London. Meanwhile, US-India trade talks showed progress with both nations working toward an interim agreement focused on tariff reductions in the agriculture and automobile sectors, ahead of the 9^th July deadline. RBI’s move to cut the repo rate by 50 basis points and the CRR by 100 basis points, which led to a rally in banking and financial stocks. Nifty Bank and Financial service indices gained 0.5% each with PSU Bank index up 1.5%. Nifty IT rose 1%, tracking gains in the tech-heavy US Nasdaq Index. Broader market showed sharp out-performance, with Nifty Midcap100 and Smallcap100 up by 1.1% and 1.6% respectively. Both FIIs and DIIs were net buyers on Friday, purchasing equities worth Rs1,000cr and Rs9,300cr respectively (including inflows from block deals). Market participants would be tracking the upcoming US May Retail Inflation data (CPI) to be released on Wednesday, followed by India’s CPI on Thursday. Gold finance NBFC stocks will be in focus after RBI announced milder final gold lending guidelines, particularly in terms of the LTV thresholds which is likely to intensify competition between banks and NBFCs. We expect positive for motor insurance companies after news reports that IRDAI has proposed an average 18% increase in motor third-party (TP) insurance premiums, potentially ending a four-year freeze in rates. Additionally, select pharma and tyre companies are expected to benefit from the anti-dumping duty imposed on insoluble sulphur and Vitamin-A palmitate. Overall, we expect the market to continue its gradual up-move, on the back of strong domestic cues - better than expected Q4 corporate earnings, RBI’s liquidity-boosting measures, above average monsoon forecast and the likely US-India trade deal.

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