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

Nifty opened flat but gained strengthen throughout the session to close near day’s high at 23290 levels with gains of 469 points (+2.1%). Dovish commentary by the RBI and hike in FY25 GDP growth forecast boosted market sentiment. Its now just 48 points away from its life time high of 23,338 levels. Broader market too rallied with midcap100/smallcap100 up 1.5%/2.3%. All sectors ended in green with IT being the biggest winner – up more than3%, followed by interest sensitive sectors like auto, real estate, etc. India Vix dropped to one-month low of 16, signaling reduced market anxiety over government formation. Strong domestic economic data, falling oil prices, and NDA unanimously passing a resolution to elect Narendra Modi as the leader of the coalition has uplifted investor confidence. Global cues added to the positivity with European Central Bank announcing interest rate cut by 25bps for the first time in nearly five years, moving faster than its US and UK counterparts. Now hopes have revived that US Fed might cut interest rate in September meet based on recent macro data points. Next week focus will be on allocation of key cabinet portfolios such as Finance, Defense, Roads, Energy, Commerce, and Railways. The market will continue to be volatile with upward biasedness.

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