Daily Market Commentary : Nifty IT Surges 2.6% Tracking AI-Led Rebound in US Stocks 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 climbed 206 points to close at 23,163 level, driven by gains in IT and financial stocks ahead of the U.S. Fed’s interest rate decision later today and the Union Budget on Saturday. The Nifty IT index gained 2.6%, mirroring the rebound in US equities as artificial intelligence (AI)-linked stocks, including Nvidia, staged a recovery. Also, some of the domestic IT companies have stated that the emergence of China’s low-cost AI startup, DeepSeek, presents opportunities rather than threats to their business. The Cabinet approved the National Critical Mineral Mission to build a value chain for critical minerals which led to positive momentum in mining stocks. Shares of sugar companies surged in reaction to news reports that government might consider raising the price of ethanol derived from B-heavy molasses. Broader market indices witnessed strong buying interest, with Nifty Midcap100 and Smallcap100 indices rising over 2% and 3% respectively. Investors are closely watching US Fed’s commentary for indications on future monetary policy, while it is expected to keep its benchmark interest rate unchanged in the ongoing meet. Going ahead, market will be focusing more on Budget-related developments with capex and consumption related sectors likely to be in the forefront. The Q3 earnings from Larsen and BEL will be keenly tracked ahead of the budget, amongst other results to be released tomorrow.
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