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

The Nifty index opened flat but sharply declined in the latter half of the session, ending the day with a loss of 364 points (-1.5%) at 23,587. The broader market was hit even harder, with the Midcap100 and Smallcap100 indices falling 2.8% and 2.2%, respectively. Every sector closed in the red, with losses ranging from 1% to 4%. Several factors contributed to this downturn: weak global cues, the Indian rupee hitting an all-time low, and continuous selling by foreign institutional investors (FIIs). The rupee breached the 85-mark, adding to the negative sentiment. Additionally, the Federal Reserve's outlook on interest rates, projecting only two cuts in 2025 (down from an earlier forecast of four), alongside rising inflation, pushed the 10-year bond yield to 4.56%, further denting market sentiment. This rise in yields, combined with a stronger dollar, led to more FIIs selling, who have already pulled out Rs 10,000 crore in the past four sessions. This marked the steepest decline in the Nifty since June 2022, with the index falling over 5% this week. On Monday, markets will likely react to the US personal consumption expenditures (PCE) data for November, a key indicator for the Fed's future actions. Looking ahead, Indian markets are expected to remain subdued and will closely follow global cues amidst a volatile environment. With the festive season approaching and global markets closed for 2-3 days, including a domestic holiday on December 25, market activity is expected to be low next week.

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