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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 Nifty50 settled marginally higher at 24,335.95 (+0.03%). Indian equity benchmarks opened gap-up on Tuesday, but eventually closed on a flat note.  Initial gains were driven by improving US trade negotiations and strong institutional buying. Both, FIIs and DIIs turned net buyers in the last two trading sessions. Sectorally, Nifty IT led the gains with a 1.2% rise, followed by Consumer Durables (+0.6%) and Oil & Gas (+0.5%). On the broader market front, the Nifty Midcap 100 rose 0.3% and the Nifty Smallcap 100 gained 0.4%, indicating relatively stronger momentum in the mid- and small-cap segments. The RBI’s decision to inject Rs.1.25 lakh crore worth of liquidity via OMO purchases in May is seen as a positive for the banking sector, potentially easing liquidity. Separately, comments from the U.S. Treasury Secretary that India is likely to be the first to sign a trade deal with US; is seen as positive for export-oriented sectors such as auto ancillaries, pharma, and IT, once the agreement is finalized. Defence stocks continued their upward trend, driven by heightened geopolitical tensions and the finalisation of a Rs.64,000 crore Inter-Governmental Agreement between India and France for 26 Rafale-M fighter jets for the Indian Navy. Looking ahead, progress on the US trade deal is expected to provide near-term support, while the ongoing earnings season may lead to stock specific movements.

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