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Below the Daily Market Commentary for April 30th 2026 by By Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian markets are expected to remain sideways with a positive bias in the near term. While global headwinds and intermittent volatility continue to weigh on sentiment, supportive domestic cues—particularly the ongoing earnings season and steady domestic inflows—are providing a cushion on the downside. Investor sentiment will also be influenced by the domestic political developments, as the state election results will be announced next week on Monday. In this backdrop, stock-specific action is likely to dominate, driven by earnings announcements, with key results ahead, from Kotak Mahindra Bank, Zen Technologies, Jindal Steel and Power and others. On Thursday, Indian markets opened weak but witnessed a recovery of 201 point from day’s low, although the benchmark remained below the 24000 mark. The recovery was driven by value buying at lower levels and selective support from IT and pharma stocks. The Nifty closed at 23,997 (-0.7%), while broader markets remained under pressure, with the Midcap100 and Smallcap100 declining 0.8% and 0.5% respectively. Sectorally, Metals, PSU Banks and Consumer Durables emerged as the worst performers, while IT was the only sector to close in the green (+0.5%). Crude oil prices remained elevated (above USD 110 per barrel), while the Indian rupee weakened to a record low of 95.3/USD, adding to macro pressures. Moreover, the ongoing heatwave is exacerbating inflationary pressures, with rising temperatures likely to push up food prices, particularly vegetables, alongside already elevated energy costs, which could weigh on overall consumption. This will benefit power, cooling appliances and agri-input segments through higher demand. On the institutional front, the FIIs selling remains a key overhang, with outflows continuing for eight consecutive sessions and totalling to ?62,088 crore this month, reflecting cautious global sentiment. On the global front, Major central banks, including the US Federal Reserve, Bank of Japan and ECB, kept interest rates unchanged this week while maintaining a hawkish tone, as the recent surge in energy prices has reduced the likelihood of near-term rate cuts. For India, a stronger dollar and a narrowing interest rate differential could constrain the RBI’s ability to ease policy, even if domestic conditions soften. On the domestic front, India’s $1.2 billion missile deal with Russia strengthens its strategic capabilities and is a positive development for the defence, capital goods and electronics sectors, as it reinforces long-term defence spending and indigenisation opportunities. Looking forward, markets are likely to remain sensitive to the developments in the West Asia conflict, crude oil prices and foreign fund outflows. With Indian markets closed on Friday on account of Maharashtra day, and US markets are closed on account of Labour Day.

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