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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 closed marginally lower at 24,678 (-0.1%), amid a volatile trading session. Broader markets outperformed, with the Nifty Midcap100 and Smallcap100 indices rising 0.5% and 0.8%, respectively. Sectorally, auto, metal, FMCG, telecom, and PSU banks posted gains of 0.3%-1.0%, while IT and media indices faced selling pressure. In today’s much anticipated meeting, RBI reduced the CRR by 50 bps to 4% inline with market expectations. This move is expected to enhance liquidity in the financial system, support credit growth and aid economic recovery. The repo rate was maintained at 6.5%, showcasing a balanced approach to managing inflation while fostering growth. FIIs have started December on a positive note, by purchasing over Rs.14,000 crore equities in the last three sessions, providing a significant boost to market sentiment. Globally, market participants are closely watching the release of Eurozone GDP, US unemployment and Nonfarm Payrolls data today, which are expected to provide key signals on economic momentum. Looking ahead, next week will see significant economic data releases, including GDP numbers from the US, Japan, and UK, along with China’s CPI and PPI, and India’s CPI. On the domestic front, the primary market is gearing up for a dynamic week, with three mainline IPOs, including Vishal Mega Mart and Mobikwik, alongside five SME offerings set to open for public subscription. Next week, we expect Nifty to maintain its gradual upmove, driven by potential increase in liquidity post RBI’s CRR cut, positive news flows around government policies and return of FII inflows.

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