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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 exhibited volatility as markets tracked intensified attacks between Iran and Israel, cautious commentary from US Fed and the looming deadline for levy of US reciprocal tariffs. Nifty ended with marginal loss of 19 points at 24,793 (-0.1%). Broader market witnessed significant selling pressure, with Nifty Midcap100 and Smallcap100 down by 1.6% and 2.0% respectively. Among sectors, Nifty PSU Bank, Realty, Metal and IT indices fell between 1-2% each; while Nifty Auto was the sole gainer, adding 0.5%.  On the macro front, the US Federal Reserve held the benchmark interest rate steady at 4.25%-4.50% for the fourth straight time, since its last easing move of 25bps in Dec’24. The Fed raised its 2025 rate cut projection to two cuts (from one earlier), though Chair Jerome Powell stressed the need to assess the inflationary impact of trade tariffs before committing to any easing. Both FIIs and DIIs collectively bought equities worth Rs11,600 over the last two trading sessions, providing some support to the market. The Indian rupee however, weakened to a 3-month low, resulting from a surge in crude oil prices amid fears of a broader conflict in the Middle East. Overall, we expect the market to remain in consolidation mode, following the global market cues and developments on the geo-political front; while there could be heightened volatility in case of further escalation in the Israel-Iran conflict.

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