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Below the Quote on Daily Market Commentary for August 18th 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities are likely to remain under pressure in the near term as elevated crude oil prices, US-Iran tensions and weak global cues weigh on sentiment. With Brent crude rising above US$90/bbl and the reopening of the Strait of Hormuz remaining unresolved, oil prices will remain a key monitorable for the rupee, inflation and foreign flows. The Nifty 50 extended its losing streak to six consecutive sessions, declining 1.7% over the past week and closing 0.5% lower at 24,156 on Tuesday. Weak global cues and FII selling weighed on sentiment, with FIIs selling equities worth ?2,535 crore on Monday, their highest selling in three weeks. The US 10-year Treasury yield remained elevated at around 4.7%, while the rupee weakened 0.15% to ?95.7/US$, adding to pressure on domestic equities. Broader markets remained mixed, with the Nifty Midcap 100 declining 0.4%, while the Nifty Smallcap 100 was broadly flat. Sectorally, Media and Automobiles gained 0.3% each, while IT, Realty and PSU Banks were among the key laggards. The Nifty IT index declined nearly 2% for the third consecutive session, pressured by elevated US Treasury yields and crude oil prices. On the structural front, the government approved 31 new investment proposals worth ?7,877 crore under the Electronics Component Manufacturing Scheme, taking total approved investments to ?69,548 crore, above the ?59,350 crore target. The projects are expected to generate production of ?5.34 lakh crore, further strengthening domestic electronics manufacturing and localisation. Overall, elevated crude prices, geopolitical uncertainty and foreign selling are likely to keep near-term sentiment subdued, while resilient domestic fundamentals and continued policy support could provide a constructive medium-term backdrop

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