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Below the Quote on Daily Market Commentary by Mr. Siddhartha Khemka, Motilal Oswal Financial Services Ltd.

Indian equity markets witnessed sharp rally after US President deferred the planned tariffs both on Canada and Mexico by 30 days, providing a major relief to the escalating trade war. Nifty surged 1.6% to reach 23,739 level. Gains in several heavy weight blue-chips contributed to the rally. Broader markets also witnessed buying interest, with Nifty Midcap 100 advancing 1.6% and Nifty Smallcap 100 rising 1.1%. There was strong demand for Banking and Financial Services stocks ahead of the RBI Monetary Policy meet scheduled from February 5 to 7. Rate-sensitive sectors like auto and real estate gained 0.7-0.8%, benefiting from expectations of an interest rate reduction later in the week and increased spending post tax relief in the budget. Investors will watch out for US and India’s Services PMI for January to be released tomorrow. We expect gradual upmove in domestic equities with focus on global markets, Q3 corporate earnings and the RBI MPC meet starting tomorrow.

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