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Below the Quote on Daily Market Commentary for August 17th 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities are likely to remain range-bound as the market shifts focus from the concluded Q1FY27 earnings season to global macro and geopolitical developments. The Strait of Hormuz and the trajectory of crude oil prices will remain the key near-term drivers, as conflicting US-Iran positions have clouded prospects of a near-term resolution, raising risks of elevated crude prices. Investors will also track the US Federal Reserve's July meeting minutes this week for cues on the global interest-rate outlook. Domestic equities started the week on a weak footing, with the Nifty 50 closing 78 points lower at 24,287 (-0.3%). India VIX rose over 3%, while Brent crude rose 1.2% to above US$89/bbl. The rupee weakened 0.3% to ?95.7/US$, pressured by the RBI advancing the cut-off for its concessional FCNR(B) swap facility to August 31 from September 30. Broader markets were mixed, with the Nifty Midcap 100 ending flat, while the Nifty Smallcap 100 gained 0.4%. Sectorally, Realty, Metals and Media outperformed, while IT (-1.7%) and FMCG (-1%) lagged. The concluded Q1FY27 earnings season provided a supportive domestic backdrop, with the MOFSL Universe, excluding OMCs, reporting 18%/15%/22% YoY growth in sales/EBITDA/PAT, well ahead of estimates. Nifty PAT growth of 18% YoY reached a 10-quarter high, leading to a 0.6% upgrade in FY27 Nifty EPS estimates to ?1,232. Financials, Metals, Oil & Gas and Automobiles were the key growth drivers. The government's focus on manufacturing, energy security and strategic sectors, reiterated by PM Modi in his Independence Day address, remains supportive for capital goods, electronics, defence and power. NITI Aayog's US$50 billion telecom equipment export opportunity further highlights the potential from localisation and domestic manufacturing. We remain positive on the telecom equipment sector. Primary market activity remains robust, with Dhoot Transmission and Molbio Diagnostics gaining 36% and 31%, respectively, on debut. IPO activity is expected to remain elevated this week, with Horizon Industrial Parks, Lalithaa Jewellery Mart, Sunshine Pictures, Shankesh Jewellers, Gaja Alternative Asset Management and Tempsens Instruments scheduled to open for subscription. Overall, elevated crude prices and geopolitical uncertainty warrant near-term caution, while resilient earnings and strong domestic structural themes continue to support the medium-term outlook.

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