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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 closed with gains following positive global cues with Nifty50 up 0.3% at 24,620. US markets ended higher on Tuesday after better than expected April job openings data, indicating resilience in the US labour market despite concerns over tariff policies. Further, Asian indices ended in the positive on optimism over trade talks between the US and Chinese President this week. Meanwhile, US is pushing trading partners to provide their best offers on trade negotiation by Wednesday as tariff deadline looms. Nifty IT edged up by 0.4% after US Nasdaq Index rose by 0.8% on Tuesday supported by gains in Nvidia and other semiconductor stocks. Railway stocks were in momentum, driven by surge in order books after a slew of recent government orders. Broader market witnessed buying interest with Nifty Midcap100 and Smallcap100 gaining 0.4-0.5% each. India's service sector showed steady growth in May, with the services PMI recorded at 58.8, marginally up from 58.7 in April. With the 3-day monetary policy meet beginning today, investors will be closely tracking RBI’s interest rate decision on Friday. Rate-sensitive sectors including PSU Banks, Realty and Auto will be in focus, driven by expectation of a third rate cut in 2025 and measures to further boost liquidity. The FIIs ended May’25 with a net buying of Rs11,773 crore, the highest monthly buying since Sept’24. However, FIIs have been net sellers for the past two consecutive sessions, with a cumulative outflow of over Rs5000cr as on 3^rd June. Meanwhile, DII buying is supporting the market, led by a rise in block deals (Rs3,480 Cr deals executed today). We expect the market to remain in consolidation mode, tracking global markets and macro-economic cues; while stock-specific action would continue on the back of sectoral developments.

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