Daily Market Commentary : Market sentiment was further weighed down by the rising geopolitical tensions between Russia and Ukraine Says Mr. Siddhartha Khemka, Motilal Oswal
Below the Quote on Daily market commentary by Mr. Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd
Nifty50 opened gap-down, following weak global cues after US announced to double the trade tariffs on Steel and Aluminium imports and President Trump criticized China over violating tariff norms. Market sentiment was further weighed down by the rising geopolitical tensions between Russia and Ukraine. However, Nifty managed to recoup early losses to close on a flattish note at 24,717 (-0.14%). The recovery was led by buying in the broader market with Nifty Midcap100 and Smallcap100 up by 0.6% and 1% respectively. Investor sentiment was supported by India’s strong Q4 GDP growth of 7.4% (vs 6.7% forecast), robust GST collection of over Rs2 lakh crore in May’25 and an in-line US retail inflation at 0.1%. Amongst sectors, Realty and PSU Bank indices witnessed a smart rally; gaining over 2% on hopes of a 25bps rate cut in the upcoming RBI policy on 6th June. The FMCG index rose 0.8% after the government slashed import duty on crude edible oil to 10% from the earlier 20%. Meanwhile, Nifty IT declined 0.7%, tracking weakness in US equity futures and the Metal index lost 0.7%, following the US tariff hike on steel and aluminium from 25% to 50%. Automotive sales for the month of May came in mixed, with export momentum and SUV demand cushioning the impact of sluggish sales in the passenger car segment. Mahindra & Mahindra (M&M) and Toyota Kirloskar Motor clocked strong double-digit growth in volumes, riding on robust demand for their utility vehicle line-ups. India’s electric two-wheeler sales grew 30% YOY in May’25, as TVS Motor, Bajaj Auto and Ather Energy doubled volumes while Ola Electric’s volume halved. In an analysis on the results front, the 4QFY25 corporate earnings concluded on a strong note with Nifty delivering a 3% YoY PAT growth (vs. our est. of +2%), showcasing widespread outperformance across sector aggregates. Metals, OMCs, PSU Banks, Automobiles, Healthcare, Technology, and Capital Goods fuelled this healthy performance. Conversely, Oil & Gas (ex-OMCs) and Private Banks dragged overall profitability. The Indian market is expected to continue its consolidation amid weak global cues, although downside may be limited due to strong domestic macros and a potential boost from the anticipated RBI rate cut.
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