Quote on Daily Market Commentary for 08th January 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd
Below the Quote on Daily Market Commentary for 08th January 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd
Indian equity benchmarks witnessed a steep fall on Thursday, with Nifty50 declining 264 points to close at 25,877 (-1%), as investors grappled with concerns over potential US tariffs, continued FII selling and weak global cues. Both Nifty Midcap100 and Smallcap100 fell by 2%, reflecting widespread weakness in broader markets with selling pressure across all sectors. Nifty Metal index was the worst performer, plunging 3.4%. Fall in metal prices, along with profit booking were among the key factors behind the sharp decline. Metals were followed by Oil and gas and PSU Bank indices which declined 2.8% and 2.1% respectively. Capital Goods stocks fell up to 12% after media reports suggested that Indian Finance Ministry is planning to scrap a five-year-old restriction on Chinese firms bidding for Government Contracts which triggered fear of increased competition. Share of IT companies were under pressure ahead of Q3 results amid expectation of another tepid quarter for the sector. Private banks remained relatively resilient, witnessing a minor decline of 0.4%. Shares of export-oriented companies tumbled after US President Donald Trump supported the bipartisan sanctions bill that proposes 500% tariff on countries continuing to do business with Russia, including India. Amidst this turmoil, there is a ray of hope from corporate earnings which is expected to see sharp improvement in Q3. We expect MOFSL coverage universe (~340 companies) to deliver 16% YoY PAT growth – the strongest in the past eight quarters, while earnings for Nifty50 are estimated to grow at 8% YoY. Earnings growth is likely to be broad-based, led by Oil & Gas (+25% YoY), NBFC Lending (+26%), Automobiles (25%), Metals (+15%), Telecom (2.6x jump in profits), Capital Goods (+24%), Cement (+66%). Overall, we expect the market to remain under pressure in the near term, dragged by concerns over US tariffs, ongoing geopolitical tensions and weak global market cues.
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