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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 fell sharply, reacting to weak global cues and surge in crude oil prices after Israel launched military strikes on Iran earlier today. Nifty ended with a loss of 0.7% at 24,719, showing recovery from lower levels towards the end of the session. The sharp rise in crude prices weighed on the Indian Rupee and led to selling pressure in OMCs, paints, tyres and lubricant stocks. Conversely, shares of upstream oil companies ended with moderate gains; while defence stocks surged significantly amid heightened geo-political tension, pushing Nifty India Defence index up by 1.5%. The FIIs offloaded shares worth Rs3,831 crore on Thursday- their second consecutive day of selling, adding to negative market sentiments. Broader markets also showcased weakness, with Nifty Midcap100 and Smallcap100 down 0.6% each. Aviation stocks witnessed sharp fall after a tragic plane crash in Ahmedabad on Thursday, triggered fear among investors. Auto ancillary stocks declined after U.S. President Donald Trump signalled the possibility of raising tariffs on imported vehicles. We expect market focus to remain on oil exploration companies on the back of rise in crude prices amidst the backdrop of escalation in Israel-Iran military action. Further, any such escalation would have a positive rub off effect on domestic defence companies on expectation of increased export orders amidst higher defence spending. Overall, we expect the market to remain subdued on the back of weak global cues, while industry-specific news flows would continue to drive sectoral movements.

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