Daily Market Commentary : Nifty rebounded sharply, breaking a 10-day losing streak to end with 1.1% gains at 22,325 level Says Mr. Siddhartha Khemka, Motilal Oswal Financial Services Ltd
Below the Quote on Daily Market Commentary by Mr. Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Nifty rebounded sharply, breaking a 10-day losing streak to end with 1.1% gains at 22,325 level. This resulted from strength in the Asian markets and value buying at lower levels in the Indian market. A key driving factor for the market was the indication from the US Commerce Secretary that the Trump administration could announce a pathway for reducing tariffs on Mexican and Canadian goods. The broader market witnessed strong buying interest for the second consecutive day with Nifty Midcap 100 and Smallcap 100 indices rising 2.4% and 3% respectively. Shares of steel stocks gained significantly after China announced that it would restructure its steel industry to cut its total output. China’s move is expected to reduce the dumping of cheap steel into the Indian market, which would act as a positive to the domestic steel companies. The strong rise in steel stocks led to a rally in Nifty metal index, which was up nearly 4.5%. On the macro front, India’s services PMI showed recovery in February, rising to 59, up from 56.5 in January backed by surge in new business order. Investors will watch out for US Service PMI to be released later today and ECB interest rate decision tomorrow. Going ahead, a sustained market recovery would be largely dependent on global developments around the US tariffs as well as continued buying interest in domestic equities.
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