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Below the Quote on Daily Market Commentary for July 24th 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities are expected to remain under pressure as escalating geopolitical tensions in West Asia keep Brent crude oil prices elevated, weighing on the rupee and investor sentiment. Iran's rejection of the US-backed temporary ceasefire proposal has heightened the risk of prolonged disruptions through the Strait of Hormuz and the Red Sea, keeping energy markets on edge. Elevated crude oil prices, rupee weakness and persistent Foreign Institutional Investor (FII) selling are expected to remain the key near-term headwinds, although the ongoing Q1FY27 earnings season is likely to drive stock-specific action and limit broader downside. Key earnings over the weekend from IDFC First Bank, Zen Technologies, Birla Corporation and AU Small Finance Bank will also remain in focus. On Friday, Nifty recovered 161 points from the day's low but ended 0.4% lower at 23,767, taking its weekly decline to 1.7%. Investor sentiment remained subdued amid elevated crude oil prices ($100 bbl), persistent FII selling, weaker-than-expected earnings from Eternal and InterGlobe Aviation, and weakness across financials and automobiles. The rupee recovered modestly following likely RBI intervention but remained near a two-month low at around Rs 96.6/US$. India VIX rose 4.1%, while the Nifty Midcap 100 and Nifty Smallcap 100 declined 0.1% and 0.3%, respectively. Sectorally, Nifty Media, IT and PSU Banks outperformed, while Auto, Metals and Realty led the declines. Eternal, Bajaj Finance, and Mahindra & Mahindra were among the biggest drags on the Nifty 50. The European Central Bank kept its key policy rate unchanged at 2.25%, maintaining a data-dependent stance while warning that elevated energy prices and geopolitical tensions continue to pose upside risks to inflation. The US 10-year Treasury yield rose to around 4.71%, increasing the risk of foreign capital outflows from emerging markets. Additionally, US also imposed an additional 10% tariff on select Indian imports. Meanwhile, India's HSBC Flash Composite PMI eased to 54.3 in July from 57.1 in June, marking the slowest pace of private sector expansion in over four years. Looking ahead, investors will monitor the US Federal Reserve's policy decision, Federal Reserve Chair Jerome Powell's commentary and the Bank of Japan's policy meeting for further cues on the global interest rate outlook. In the primary market, Lohia Corp, Indo-MIM and Xtranet Technologies are scheduled to list next week, with a combined issue size of approximately Rs5,079 crore.

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