Daily Market Commentary : Nifty IT gained traction on account of expected insulation from global trade risks Says Mr. Siddhartha Khemka, Motilal Oswal Financial Services Ltd
Below the Quote on Daily Market Commentary by Mr. Siddhartha Khemka, Motilal Oswal Financial Services Ltd.
Nifty closed near day’s high with gains of 131 points (+0.6%) at 23,155 level, supported by better than expected Q3 result of index heavyweight HDFC Bank and buying interest in IT and pharma stocks. Nifty IT gained traction on account of expected insulation from global trade risks. However, broader markets underperformed with Nifty Midcap100 and Smallcap100 indices shedding over 1% each. The Nifty Smallcap 100 index has declined by 8.5% so far in Jan’25 while Nifty Midcap 100 index has lost 7% in the same period. The recent correction in small and midcap indices is largely driven by a mix of valuation concerns, macroeconomic pressures and profit-booking by investors. Stocks in renewable energy space witnessed selling pressure amid concerns over the new US administration’s potential tariffs on solar imports. The anticipated policy changes under President Trump, including higher tariffs and a shift towards fossil fuels, could hinder solar demand growth and impact Indian exporters. Banking stocks will be in focus after HDFC bank’s earnings beat market expectation and brought some cheer to the banking index in the last hour of trading today. The management commentary and future guidance from HDFC bank will be closely tracked. Also, the FMCG space could witness some action tomorrow as HUL released its Q3 numbers post market closing. We expect markets to trade within a broad range in the near term, tracking global cues and quarterly performance of domestic companies.
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