IGI Logo

Below the Daily Market Commentary for March 24th 2026 By Siddhartha Khemka - Head of Research,Motilal Oswal Wealth Management,

On Tuesday, Indian equities ended on a positive note, with the recovery driven by value buying following the recent sharp correction and supportive global cues. Sentiment improved on signs of easing geopolitical tensions, including reports of potential negotiations between Iran and the U.S., which provided some relief to markets. However, this relief is likely to remain conditional on incoming news flow and official commentary from both sides, with markets expected to stay sensitive to these cues and volatility likely to persist. Any meaningful de-escalation in the ongoing conflict or progress in negotiations could provide a more sustained positive impact on sentiment. A temporary pause in U.S. strikes on Tehran’s energy infrastructure supported stability in energy markets. This led to a moderation in crude oil prices from recent highs, with Brent crude declining sharply by over 10% to around $100 per barrel, helping ease concerns around inflation and supply disruptions. Crude oil prices continue to act as a key leading indicator for market direction, given their sensitivity to geopolitical developments and their broad impact on global economic conditions. Meanwhile, the India VIX declined 7.4%, indicating some easing in near-term volatility. The Nifty50 closed at 22,912, gaining 1.8% (+400 points). Broader markets closed higher as well, with the Midcap100 and Smallcap100 rising 2.7% and 2.6%, respectively. On the FIIs front, amid ongoing geopolitical tensions and elevated energy prices, March has witnessed outflows of nearly Rs1 lakh crore within just 15 sessions, reflecting sustained risk-off sentiment in the market. On the currency front, the Indian rupee rebounded from record lows, opening stronger at around Rs93.84 per U.S. dollar, supported by a cooling in crude oil prices after the U.S. signalled a pause in strikes on Iran and opened the door for negotiations. However, despite the recovery, the currency remains under pressure due to elevated oil prices, persistent foreign fund outflows and ongoing geopolitical uncertainties. Going ahead, key factors to monitor for market direction will include movements in crude oil prices, trends in Foreign Institutional Investor flows, and developments in United States–Iran negotiations, which are likely to be the primary drivers in the near term.

Above views are of the author and not of the website kindly read disclaimer