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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 witnessed a strong rally today, with Nifty gaining 1.2% to close at 24,329, up 289 points. The surge was driven by several factors, including the absence of any fresh developments on the India-Pakistan front over the weekend, strong earnings and positive reaction from heavyweights like Reliance (up 5.1%) and Axis Bank (up 2.1%), and positive global cues as the US and China softened their stance on tariffs and agreed to begin talks. Additionally, consistent foreign institutional investor (FII) buying over the past few days, with cumulative inflows reaching ?32,467 crores over the last eight consecutive trading sessions, boosted market sentiments.

Broader market indices witnessed strong buying interest with Nifty Midcap100 and Smallcap100 rising 1.6% and 0.8% respectively. Except Nifty IT, all other sectoral indices ended in the green with Oil and Gas index being the top performer with 3% gains. PSU Bank, Pharma and Healthcare indices followed with gains of 2% each.

Defence sector was in focus as the Nifty Defence index rose 4%. India signed the deal to purchase 26 Rafael Marine combat aircrafts worth around ?64,000 crore from France for the Indian Navy. Further, there were news reports suggesting that India is considering approval of Rs25,000 fund for Maritime Development Fund (MDF) boosting the shipping sector. 

With Indian equities witnessing sustained buying interest, we expect the gradual up-move in the market to continue with some volatility on the back of geo-political developments. Meanwhile, stock/sector specific action would continue on account of ongoing Q4 earnings announcements. Key results on Tuesday include Bajaj Finance, Bajaj Finserv, Trent, BPCL, Ambuja Cements amongst others.

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