IGI Logo

Below the Quote on Daily Market Commentary by Mr. Siddhartha Khemka, Motilal Oswal Financial Services Ltd.

Benchmark index Nifty declined to seven-month low, to close at 22,829 level (-1.1%) on the back of weak global cues, tepid corporate earnings and uncertainty around U.S. trade policy. Relentless FII selling with over  70,000 crore outflow for the month, added to the negative market sentiment. The broader market took a severe hit, with Nifty Midcap100 and Smallcap100 plunging as much as 2.8% and 3.8% respectively. Donald Trump’s threat of imposing 25% tariff on Colombia over repatriation of Colombian immigrants from the US, weighed on the market. Nasdaq futures slumped and Japanese tech stocks declined, reflecting concerns over Chinese start-up DeepSeek's cost-efficient AI model, which is posing threats to the business models of US tech giants like Nvidia, OpenAI and Google. This also had a rub-off effect on Indian IT stocks with Nifty IT Index falling 3.5%, being the biggest loser amongst sectoral indices. The two-day U.S. FOMC meeting scheduled for January 28-29, is further adding to investors’ nervousness. With global market weakness and  anxiousness  around Trump’s trade policy, Indian equities are expected to remain under pressure in the near term. Investors will closely monitor the upcoming Q3 results, Federal Reserve’s stance and India’s Budget announcements during this 6-day trading week for further cues.

Above views are of the author and not of the website kindly read disclaimer