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Below the Quote on Daily Market Commentary for July 22nd 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities are expected to trade sideways with a marginal negative bias in the near term amid continued geopolitical tensions in West Asia, Brent crude prices rising to near their five-week high of around USD 95/bbl and continued Foreign Institutional Investor selling. Stock-specific action is likely to dominate as the earnings season progresses. While investors will closely monitor global macro developments, including the ECB interest rate decision and US jobless claims. Key Q1FY27 earnings due on Thursday include Infosys, InterGlobe Aviation, Cipla, Meesho and Coromandel International. Domestic equities ended lower, with the Nifty 50 declining 0.8%, while the Midcap100 and Smallcap100 indices fell 1.1% and 1.5%, respectively. Broad-based selling persisted across sectors, while India VIX surged 5.6%, reflecting heightened market volatility. Auto stocks extended gains for the second consecutive session after Bajaj Auto and TVS Motor reported strong 1QFY27 performance. The sector is expected to remain in focus as the Ministry of Heavy Industries is considering extending subsidies for domestically manufactured electric two-wheelers beyond the July 31 deadline, with support likely to remain around Rs 5,000 per vehicle. Pharmaceutical stocks came under pressure, with the Nifty Pharma index declining more than 1.3% after US President Donald Trump announced a phased tariff plan on imported generic medicines. Under the proposal, generic drugs entering the US would continue to face zero tariffs for two years, followed by a 100% tariff for one year and 200% thereafter, raising concerns over the long-term outlook for Indian pharmaceutical exports. Banking stocks also witnessed selling pressure, led by Bandhan Bank, which declined 10%, after lowering its return-on-assets guidance for FY27 due to expectations of narrower NIMs and higher Opex.

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