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Below the Quote on Daily Market Commentary for August 25th 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities are expected to see some recovery following the decline in crude oil prices. Brent crude fell 3.2% to around US$89/bbl, its lowest level in a week, as hopes of easing US-Iran tensions provided some relief to oil markets, while developments around Iran and the Strait of Hormuz remain key monitorable for oil prices, the rupee and foreign flows . On Tuesday, the Nifty 50 recovered 0.5% to close at 24,334 after touching a low of 24,115, supported by buying at lower levels, positive global cues and FII buying ahead of the monthly F&O expiry. Broader markets were mixed, with the Nifty Midcap 100 gaining 0.5%, while the Nifty Smallcap 100 declined 0.1%. Sectorally, Healthcare, Consumer Durables and Pharmaceuticals outperformed, while Private Banks were the key laggards. The government's approval to transfer DRDO missile technology to domestic industry should accelerate defence manufacturing and localisation, strengthening the domestic defence ecosystem.  Meanwhile, the narrowing India-US 10-year bond yield spread warrants monitoring for its implications for the rupee, RBI policy and foreign flows. On the commodities front, gold surged to a three-month high above US$4,668/oz, supported by dollar weakness and concerns over US fiscal stress. India's private credit market saw US$3.5 billion of deployment across 102 deals in H1CY26, with domestic funds accounting for 74% of deal value, highlighting the growing role of local capital. Meanwhile, the planned pilot of tokenised corporate bonds using blockchain, wholesale CBDC and DEMAT 2.0 could improve bond-market efficiency and accelerate digital-finance adoption. We remain positive on the theme.

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