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Below the Quote on Daily market commentary by Mr. Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities ended with modest gains in a volatile session, as investors continue to track progress in the India-US trade deal ahead of the approaching tariff deadline. Nifty50 gained 56 points to close at 25,461 (+0.2%). The broader market underperformed with Nifty Midcap100 and Smallcap100 indices ending on a flat note. Banking and financial services stocks were in focus amidst mixed Q1FY26 business updates from companies within the sector. Defence stocks saw a significant surge after the Defence Acquisition Council (DAC) approved capital-acquisition proposals worth over Rs1 lakh crore, pushing the Nifty India Defence index up by 1.0%. Export oriented sectors including IT, Pharma and Healthcare witnessed buying interest with the respective sectoral indices gaining between 0.5-0.8% each, amid optimism over trade agreement with the US. On the other hand, capital market stocks were under pressure following SEBI’s market-wide ban on global trading firm Jane Street.  Meanwhile, Jun’25 rainfall surged to 109% of long-period average, the highest in four years. The early onset and strong progress of the 2025 southwest monsoon has provided a timely boost to the agricultural sector, which is likely to drive rural demand, agri-input consumption, and broader economic recovery in the coming quarters. Overall, we expect the market to remain in consolidation mode, awaiting clarity on the India-US trade deal; while stock specific action would continue on the back of Q1FY26 business updates ahead of the earnings season starting next week.

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