Daily Market Commentary for April 09th 2026 By Siddhartha Khemka - Motilal Oswal Financial Services Ltd
Daily Market Commentary for April 09th 2026 By Siddhartha Khemka - Motilal Oswal Financial Services Ltd
Indian equities traded lower after yesterday’s sharp rally, markets have taken a breather, with the Nifty witnessing some profit booking as investors await further developments on the West Asia conflict. Sentiment is likely to remain cautious until further details on the ceasefire emerge, with negotiations expected over the weekend. Markets are expected to remain highly sensitive to news flow on the geopolitical front, while a gradual up-move may resume once greater clarity emerges from the outcome of the negotiations. On Thursday, Nifty snapped its five-day winning streak, due to a combination of global and domestic headwinds. Weak global cues and persistent FII outflows (?37,934 crore in April) weighed on sentiment and liquidity. The rupee depreciated to 92.8/USD, and a rise in India VIX indicated elevated volatility. Adding to the pressure, fresh geopolitical concerns resurfaced, after US President Donald Trump reiterated that American forces would remain deployed around Iran until a “real agreement” is implemented. Meanwhile, signals of potential ceasefire breaches and continued Israeli strikes in Lebanon have heightened uncertainty, further dampening investor risk appetite. Additionally, profit booking after the recent sharp rally and selling in financials and IT stocks ahead of earnings, further dragged the indices lower. Overall, market sentiment remains cautious amid persistent geopolitical uncertainties, elevated volatility and continued foreign fund outflows. While near-term support may emerge from easing West-Asia tensions and stable crude prices, the sustainability of any recovery will depend on clarity around the US–Iran situation, movement in energy prices and improvement in liquidity conditions.
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