IGI Logo

Below the Quote on Daily Market Commentary for July 20th 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities are expected to trade sideways to mixed amid escalating geopolitical tensions in West Asia, Brent crude oil prices remaining above USD 88 per barrel, continued weakness in the rupee (~Rs 96/$), persistent Foreign Institutional Investor selling and weak global cues. With the Q1 FY27 earnings season gathering pace, stock-specific action is likely to dominate. On Mondau, equity markets remained under pressure, with the Nifty 50 declining 0.4%, while broader markets outperformed as the Nifty Midcap 100 and Nifty Smallcap 100 gained 0.6% and 0.2%, respectively. PSU bank stocks rallied 2.8% after Punjab National Bank reported strong quarterly earnings. In contrast, the private bank index fell 2.3% after Axis Bank and Kotak Mahindra Bank reported weaker-than-expected June quarter results, with both stocks declining as much as 5% during the session. Meanwhile, ICICI Bank gained nearly 3% after reporting strong Q1 FY27 earnings. We are positive on the cement sector, expecting an earnings recovery driven by stronger demand, easing input costs and sustained government infrastructure spending. Cement demand is projected to grow 7-8% YoY in FY27, while the 10-16% decline in pet coke and coal prices is expected to support margin recovery. With 57mtpa of capacity additions during FY27, phased commissioning should keep industry utilisation broadly stable and support profitability improvement in the second half of the fiscal. The progress of the monsoon will remain an important monitorable after an uneven start to the season. India recorded its fifth-driest June on record, followed by intense rainfall in early July, but rainfall has since weakened again, with cumulative precipitation remaining about 24% below normal as of July 19. The primary market will remain active this week, with two mainboard IPOs scheduled to list on July 21. SBI Funds Management will make its much-awaited market debut, alongside Alpine Texworld. Companies expected to announce June quarter earnings tomorrow include Bajaj Auto, Cyient DLM, M&M Financial, TVS Motor and Indian Hotels.

Above views are of the author and not of the website kindly read disclaimer