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Below the Quote on Daily Market Commentary for August 6th 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities are expected to witness a gradual upmove, supported by hopes of a potential resolution in the West Asia and a better-than-expected Q1FY27 earnings season. Brent crude prices slipped below USD 80/bbl amid optimism that progress in Iran-Oman talks could pave the way for a US-Iran peace agreement, easing concerns around energy prices. Investors will also track key Q1FY27 earnings from SBI, Titan, Hindalco, Hitachi Energy and Godrej Consumer, along with the US jobs data due on Friday. Domestic equities ended largely flat, with the Nifty 50 gaining 0.05%, while the Midcap100 declined 0.4% and the Smallcap100 advanced 0.5%. Market witnessed some volatility during the session due to Sensex weekly expiry. Defence stocks remained in focus, with the India Defence Index gaining around 3%, led by fresh buying in Hindustan Aeronautics and Bharat Electronics amid sector rotation and persistent global geopolitical tensions. Nifty PSU was up 2.2% supported by positive June quarter (Q1 FY27) earnings. Realty and Auto were the weakest performers, declining 1.3% and 1% respectively. The RBI proposed a uniform principle-based framework for interest rate setting across banks and NBFCs to improve transparency, ensure more consistent loan pricing and strengthen monetary policy transmission. While the move is expected to create a more level playing field across lenders, it could gradually reduce pricing flexibility for NBFCs. Separately, the RBI stated that the recent liquidity surge from FCNR(B) deposits under its special swap window is expected to be temporary. Surplus liquidity is likely to peak around September before gradually normalising, with the inflows supporting forex reserves and near-term liquidity without creating a persistent liquidity overhang.

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