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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 Equity Benchmark index, Nifty50, initially declined but recovered in the latter part of the day, closing with a marginal loss of just 14 points at 22,945 (-0.1%). The index has been experiencing buying interest at lower levels and has managed to close above the key support level of 22,800 for the past five trading sessions. In the broader market, the Nifty Midcap100 saw a slight decline of 0.2%, while the Nifty Smallcap100 experienced a sharper fall of 1.6%. However, there was buying interest in select IT and Oil & Gas stocks. Additionally, certain Energy and Metal stocks gained due to the benefits of falling Asian coal prices. The Nifty Auto Index slipped 1%, following reports that global EV major Tesla may enter the Indian market. However, auto ancillary stocks that supply to Tesla gained during the day. Investors focus now turns to the FOMC minutes set for release on Thursday, February 20. A hawkish stance from the Fed could undermine expectations of rate cut in 2025, potentially triggering more foreign outflows from Indian markets. The main factor leading to weakness in the domestic market is Trump’s announcement of reciprocal tariffs on US trading partners including India which are likely to be finalised by April’25. Market is expected to track developments on the likely trade agreements between India and US, clarity on which could emerge over the next few weeks.

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