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Below the Quote on Daily Market Commentary by Mr. Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd

Nifty rallied by 1.3% to close at 23,658 level, turning positive for CY2025. The index is up nearly 1700 points (+7.7%) from its low of 21,964 on 4th Mar’25. The key factor driving the domestic market is the return of FII inflows after prolonged period of selling, with FIIs being net buyers of nearly Rs6,000 crore last week. Market sentiments were further supported by positive global cues after the US President hinted about flexibility in reciprocal tariffs. There is optimism that India could be benefitted from this, amidst US plans to impose reciprocal tariffs on its trading partners (including India) from 2nd April. Broader market witnessed continued buying interest as Nifty Midcap100 and Smallcap100 climbed 1.3% and 1% respectively. Banking was the top sectoral gainer with PSU bank and Private bank indices up 3.3% and 2.5% respectively. These were followed by Nifty Realty and Oil and gas indices, which ended with gains of 1.5% each. Nifty Defence index continued its bull-run for the 7th straight session, rising nearly 15% in the period on the back of strong defence order inflows. Capital market stocks surged as benchmark indices extended their winning streak for the sixth consecutive session, with Nifty50 now delivering positive returns on YTD basis. We expect this upward momentum to continue in the market on account of continued buying interest, improving FII flows, strengthening of INR against US Dollar and overall supportive global market cues.

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