Daily Market Commentary for February 24th 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd
Below the Daily Market Commentary for February 24th 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd
Global uncertainty and persistent concerns around AI-led disruption continued to weigh on market sentiment, keeping volatility elevated on D-Street. Weekly expiry of Nifty derivatives further added to intraday volatility, with markets reacting to a combination of weak global cues and sector-specific pressures. Against this backdrop, the Nifty declined 1%. However, last-hour buying in the broader markets aided a partial recovery, with the Midcap 100 ending down 0.3% and the Smallcap 100 declining 0.6%. Sectoral trends were mixed. Nifty IT emerged as the worst performer, dropping 4.8% amid continued concerns around AI disruption to large outsourcing businesses and its impact on growth visibility. On the other hand, Nifty Metal gained 0.9%, reflecting selective buying interest, while Nifty Oil & Gas rose 0.5% alongside firming crude prices. In the current global volatility, we recommend a gradual shift in focus towards domestic-facing sectors and themes less exposed to AI-related disruption. Sectors such as Banking, financials, insurance, FMCG, hospitals - remain relatively better positioned. At the same time, we are positive on sectors that could benefit from AI & Data centre led capex, such as capital goods—particularly power, transmission and distribution, and industrial metals (copper, aluminium). Looking ahead, markets are expected to remain volatile within a broader range, driven by mixed global and domestic cues. Key data points to watch include US consumer confidence later today and Eurozone CPI tomorrow.
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