Daily Market Commentary : Nifty Midcap100 and Smallcap100, which had been rallying for six straight sessions, also slipped by 1.6% and 0.9% respectively Says Mr. Siddhartha Khemka, Motilal Oswal
Below the Quote on Daily market commentary by Mr. Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd
After two days of consolidation, Indian market witnessed selling pressure with Nifty50 declining 261 points to reach 24,684 level (-1.1%). Both FIIs and DIIs turned net sellers to the tune of Rs525cr and Rs238cr respectively, dampening the market sentiment. Nifty Midcap100 and Smallcap100, which had been rallying for six straight sessions, also slipped by 1.6% and 0.9% respectively. Amongst sectors, Auto, Financial Services and Healthcare were the top losers (down 1-2% each), dragging the benchmark indices. Nifty Metal gained initially during the session, following China’s announcement of interest rate cut but pared the gains with market decline. Asian markets ended with gains, cheering China’s decision to lower its benchmark lending rates for the first time in seven months, trimming the 1-year LPR to 3.0% from 3.1% and the 5-year LPR to 3.5% from 3.6%. The IT index ended with the smallest decline, backed by a rebound in the US market which closed at a 3-month high on Monday. Meanwhile, investors are closely tracking the ongoing India and US talks for a trade agreement, which is likely to happen in three stages. As per reports, an interim agreement is expected before July when the pause in US reciprocal tariffs are set to end. On the earnings front, ONGC, Indigo, PFC, Mankind Pharma, NTPC Green, RVNL amongst others will be announcing results on Wednesday. We expect markets to remain range bound and track global cues including progress on US trade talks with India, China among others.
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