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Below the Quote on Daily Market Commentary for July 8th, 2026 by Siddhartha Khemka, Motilal Oswal Financial Services Ltd

Indian equities are expected to remain volatile in the near term as global risk sentiment has deteriorated following US President Donald Trump's comments on ending the ceasefire with Iran and withdrawing from the MoU. The developments have significantly heightened geopolitical uncertainty, with the India VIX surging nearly 30% to a three-week high. The escalation has renewed concerns over global energy supplies, pushing Brent crude above US$79/bbl (+6.2%) and is likely to keep sentiment fragile until clarity emerges. Against this backdrop, June-quarter results are expected to drive stock-specific action, with TCS's earnings likely to set the tone for the IT sector by providing early insights into demand trends and the broader earnings outlook. Reflecting the weak global backdrop, domestic markets witnessed broad-based selling on Wednesday, with the Nifty 50 declining 2.1% to close at 23,882. Investor sentiment remained under pressure as escalating West Asia tensions and concerns over disruptions to global energy supplies triggered a broad risk-off move across global equity markets. Escalating tensions around the Strait of Hormuz further amplified risk aversion. Broader markets also came under pressure, with the Nifty Midcap 100 and Smallcap100 falling 1.4% and 2% respectively.  Sectorally, all indices ended in the red, with Chemicals (-2.5%), PSU Banks (-2.5%) and FMCG (-2.4%) emerging as the top laggards. Elevated crude prices weighed on oil-sensitive sectors, with the Oil & Gas and Auto indices declining over 2% each. The rupee weakened to ?95.7 per US dollar amid heightened geopolitical uncertainties. Global risk sentiment remained subdued, with the Dow Jones Industrial Average declining 0.25% overnight, followed by losses across Asian markets as Japan's Nikkei 225 and South Korea's Kospi fell 3.8% and 5.3%, respectively. Looking ahead, market participants will closely monitor progress between the US and Iran, along with the security of shipping routes, as these are expected to remain the key drivers of crude oil prices and overall market sentiment in the near term.

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