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Below the Daily market commentary by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Equity indices logged losses amid a rise in the US bond yields and moderation seen in India’s manufacturing activity to five-month low of 57.5. Nifty opened lower and remained in negative territory throughout the session to close with loss of 110 points (-0.6%) at 19,529 levels. Broader market however, ended in the green with Midcap100/Smallcap100 up 0.2%/0.5%. Except for PSU Banks, Realty, and Consumer Durables, all sectors ended in red. Auto saw profit booking after good September month sales numbers, while O&G fell following cool-off in Brent crude prices which has corrected to below 90$/barrel. On the other hand, Housing Finance stocks gained after media report that the Finance Ministry has approved a Rs60,000 crore incentive scheme for urban housing. Overall, the GST collections remained robust at Rs.1.62 lakh crores, indicating strong economic growth. However, given the global concerns of more US rate hikes along with 16-year high US 10-year bond yield and 7-month high Dollar Index, the sentiments remain dented and thus is resulting in profit booking. In the near term, we expect this weakness to persist with stock-specific action. Investors would continue to take cues from economic data to be release globally and domestically with all eyes on RBI monetary policy due on Oct 6th, Friday.

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