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Below the Quote on Daily Market Commentary for June 16th 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities are expected to maintain their gradual positive momentum, supported by improving geopolitical developments, a revival in foreign institutional participation and a further fall in crude oil prices. Progress towards a potential US-Iran peace agreement, reportedly scheduled for signing in Switzerland on Friday, along with expectations of the full reopening of the Strait of Hormuz, has significantly improved global sentiment. Brent crude price have declined to around USD 81.4 per barrel (-2.4%), while the rupee has appreciated 0.4 paise to Rs94.3 per US dollar, helping ease concerns around inflation and external sector stability. Further supporting sentiment, Foreign Institutional Investors reversed their recent selling trend and turned net buyers, with net equity purchases of nearly Rs200 crore. Domestic markets extended their gains on Tuesday, with the Nifty 50 closing at 23,989, up 0.57%. Broader markets also participated in the up-move, with the Nifty Midcap 100 and Nifty Smallcap 100 indices advancing 0.4% each and a sharp 6.9% decline in India VIX, indicating reduced market volatility.  Sectorally, Realty, Information Technology, Media, Consumer Durables and FMCG emerged as the top-performing sectors, while Metals underperformed, declining 1.5%. Additionally, fertilizer stocks rallied on expectations that the reopening of the Strait of Hormuz will improve the availability of key fertilizer inputs from the Gulf region and ease logistics costs. Lower natural gas prices and smoother supply chains could help reduce input costs and support sector profitability. Further, foreign investors infused nearly Rs16,000 crore into Indian debt markets during June, marking the strongest monthly inflow in the last 16 months. The sustained interest reflects improving investor confidence following recent RBI liquidity measures and the government's tax exemptions for foreign portfolio investors investing in government securities. 

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