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Below the Quote on Daily Market Commentary for July 23rd 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 remain a key overhang. Continued geopolitical tensions in West Asia, Brent crude oil prices hovering near a six-week high above US$98/bbl, weakness in the rupee (around ?96.6/US$) and persistent Foreign Institutional Investor (FII) selling are expected to keep investor sentiment cautious. With the ongoing Q1FY27 earnings season, stock-specific action is expected to persist. Key companies scheduled to announce earnings on Friday include Shriram Finance, SBI Life Insurance, SAIL, Hindustan Zinc, Bank of Baroda, CG Power, Container Corporation of India, Laurus Labs, Welspun Corp, among others. Investors will closely monitor the European Central Bank's monetary policy decision and its President’s commentary today, along with developments during the ongoing Monsoon Session of Parliament for key policy announcements. Domestic equities extended losses for the fourth consecutive session, with the Nifty 50 declining 0.5% to close at 23,870. Investor sentiment remained fragile amid a sharp surge in Brent crude oil prices following escalating geopolitical tensions in West Asia, FII selling and cautious global cues, which outweighed support from the ongoing earnings season. Broader markets also weakened, with the Nifty Midcap 100 and Nifty Smallcap 100 declining 1% each. Sectorally, Auto and Media outperformed, while Chemicals, Realty, Oil & Gas and PSU Banks were among the key laggards. Brent crude oil surged up to 5% on Thursday, climbing above US$98/bbl, a six-week high, following reports of the closure of the Strait of Hormuz. State-owned oil marketing companies are likely to remain under pressure, with HPCL and BPCL reporting Q1FY27 under-recoveries as higher input costs could not be fully passed on to consumers. RBI reduced its net US dollar sales to US$6.1 billion in May from US$8.9 billion in April, indicating a moderation in foreign exchange market intervention while continuing to support the rupee. In its latest Bulletin, RBI stated that India's economy continues to maintain strong growth momentum despite global uncertainties, supported by robust domestic demand and resilient macroeconomic fundamentals, while cautioning that geopolitical tensions, elevated crude oil prices and weather-related risks remain key risks to the growth and inflation outlook.

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