Quote on Daily Market Commentary for June 08th, 2026 by By Siddhartha Khemka - Head of Research, Motilal Oswal Financial Services Ltd
Below the Quote on Daily Market Commentary for June 08th, 2026 by By Siddhartha Khemka - Head of Research, Motilal Oswal Financial Services Ltd
Indian equities are expected to remain volatile in the near term, with sentiment weighed down by escalating geopolitical tensions in West Asia. Iran's missile strikes on Israel in retaliation to Israel's actions in Lebanon have pushed Brent crude prices nearly 3% higher to around USD 96/bbl, raising concerns around inflation and external sector pressures. Commodity-led inflation, weaker monsoon expectations and sustained Foreign Institutional Investor outflows are likely to keep the near-term backdrop challenging. Globally, profit booking in AI and semiconductor stocks, along with liquidity-driven selling ahead of SpaceX's mega IPO, further added to global risk-off sentiment. Domestic equities witnessed broad-based selling pressure on Friday, with the Nifty 50 declining 1%, while the Midcap and Smallcap indices fell 1.4% and 1.9% respectively. Real GDP growth remained strong 7.8% in 4QFY26 (vs. 8.0% in 3QFY26), and remained well ahead of 7.0% in 4QFY25 and came in 30bp above our estimate of 7.5%. Despite the beat, concerns around India's FY27 growth outlook remain. We forecast GDP growth at 6.5%, broadly in line with the RBI's revised estimate of 6.6% (down from 6.9% earlier). Foreign investors pulled out nearly ?43,000 crore from Indian equities in the first week of June, amid a global rotation toward technology and AI-linked opportunities overseas and continued weakness in the rupee.
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