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

Nifty witnessed a sharp recovery of more than 2% from day’s low, rebounding from a significant dip earlier in the session, to close with gains of 220 points at 24,768 (+0.9%). Buying in FMCG, IT and banking stocks supported the recovery, even as broader market sentiment remained cautious. The intraday sell-off in Indian equities followed weakness across Asian markets, which posted steep losses amid a stronger dollar, rising US Treasury yields and continued skepticism over China’s economic revival. The lack of clarity in China’s stimulus plans weighed on metal stocks, dragging the Nifty Metal index down by 0.7%. Foreign institutional investors (FIIs) have intensified selling, offloading Rs 4,572 crore worth of Indian equities over two days. U.S. Treasury yields have surged to their highest levels this year, dampening hopes for significant Federal Reserve rate cuts going ahead. The Indian rupee hit a new low of Rs 84.88 per dollar on Thursday, pressured by a strong dollar, FII outflows, and higher crude oil prices. Investors will watch out for manufacturing and services PMI of US and India and domestic WPI inflation to be released on Monday. We expect markets to consolidate in a broader range with gradual upmove likely on the back of sector rotation and stock specific action.

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