Quote on Daily Market Commentary for July 7th, 2026 by Siddhartha Khemka, Motilal Oswal Financial Services Ltd
Below the Quote on Daily Market Commentary for July 7th, 2026 by Siddhartha Khemka, Motilal Oswal Financial Services Ltd
Indian equities are expected to maintain a gradual positive bias, with investor focus remaining on June-quarter business updates, progress on the India–United States interim trade agreement and the southwest monsoon. Domestic markets snapped their four-session winning streak on Tuesday, with the Nifty 50 ending marginally lower at 24,399 (-0.1%) after paring early gains. Profit booking following the recent rally, weakness in Realty and Metals stocks weighed on sentiment. However, optimism surrounding the India–United States interim trade agreement, favourable global cues, lower crude oil prices, steady progress in the southwest monsoon and encouraging June-quarter business updates continued to support the broader market undertone. Broader markets underperformed, with the Nifty Midcap 100 and Smallcap 100 declining 0.4% and 0.6%, respectively. Sectorally, Information Technology and Consumer Durables were the only gainers, while Realty, Metals and Chemicals emerged as the top laggards. The Nifty IT index gained nearly 4% as investors accumulated technology stocks ahead of the June-quarter earnings season, with TCS’ results expected to set the tone for the sector and softer US rate hike expectations further supported buying interest. Sectoral focus is expected to remain on Defence and Electronics. Defence stocks are likely to remain in focus after India and Indonesia signed an agreement for the potential supply of BrahMos missiles, along with pacts on maritime safety and critical minerals during Prime Minister Narendra Modi's visit to Jakarta, strengthening India's defence export pipeline. Meanwhile, Electronics and Semiconductor stocks may attract attention as the government prepares to launch Semicon 2.0, which aims to expand incentives across the semiconductor value chain. Globally, the release of the Federal Open Market Committee (FOMC) meeting minutes on Wednesday, followed by US initial jobless claims later this week, will be closely monitored for further cues on the US interest rate outlook.
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