Daily Market Commentary : Nifty PSU Bank index stood out, gaining 2.9%, while Nifty Metal dropped 1.7%, hurt by weakness in global commodity prices 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
Domestic equity benchmarks ended slightly lower on Friday, with the Nifty50 slipping 0.3% to close at 24,751, amid cautious global cues and broad-based sectoral weakness. The broader markets were all weak, with both Nifty Midcap100 and Smallcap100 marginally down by 0.1% each, as selling pressure was seen across IT, Metal, and Auto sectors. Nifty PSU Bank index stood out, gaining 2.9%, while Nifty Metal dropped 1.7%, hurt by weakness in global commodity prices. Institutional flows remained supportive, with FIIs and DIIs together infusing Rs.5,100 crore into Indian equities on Thursday, signalling continued confidence. In key macro developments, India’s GDP growth for Q4 accelerated to 7.4%, beating street estimates of 6.7%, while the full-year FY25 growth came in at 6.5%. This reaffirmed India’s position as the world’s fastest-growing economy. Globally, concerns over economic growth persisted after the US economy contracted 0.2% in Q1CY25, albeit slightly better than the expected -0.3%, raising questions around future Fed policy moves. Next week, interest rate-sensitive sectors—particularly PSU banks—are likely to remain in focus amid growing hopes of an RBI rate cut. Additionally, the release of monthly auto sales and volume data could trigger sector-specific moves in the automobile space. Nifty ended May with gains of 1.7%, its 3rd consecutive month of rise. We expect markets to maintain its positive momentum in June on the back of strong Q4 GDP numbers, hopes of RBI rate cut and consistent institutional inflows.
Above views are of the author and not of the website kindly read disclaimer
