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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 equity benchmarks ended on a negative note on Tuesday, with the Nifty closing 0.3% lower at 24,379, as broad-based selling pressure across sectors weighed on market sentiment. The broader markets saw a more severe decline, with the Nifty Midcap 100 and Nifty Smallcap 100 indices falling by 2.3% and 2.5%, respectively. Most sectoral indices ended in the red, with the auto sector being the sole exception, posting a marginal gain of 0.2%. The positive move was largely driven by strong earnings from M&M, coupled with President Trump softening his stance on auto tariffs, providing relief to Indian auto ancillary companies. The Nifty PSU index was down 4.8%, as weak numbers from banks like Bank of Baroda led to selling pressure in the sector. Market volatility was further aggravated by escalating geopolitical tensions between India and Pakistan, coupled with uncertainty surrounding the U.S. Federal Reserve’s upcoming interest rate decision. Security drills will be held at 244 locations starting May 7 in response to the heightened India-Pakistan tensions, adding to investor cautiousness. Looking ahead, progress on the U.S. trade deal could provide near-term support to the markets. However, ongoing geopolitical concerns and the earnings season are likely to keep investor sentiment cautious in the near term. Key earnings results scheduled for Wednesday include Coal India, United Breweries, Voltas, Blue Star, and Tata Chemicals.

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