Quote on Daily Market Commentary for June 17th 2026 by Siddhartha Khemka - Head of Research, Motilal Oswal Financial Services Ltd
Below the Quote on Daily Market Commentary for June 17th 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd
Indian equities are expected to continue their gradual upmove as geopolitical concerns ease and expectations build around a potential agreement to end the West Asia conflict. The sharp decline in crude oil prices has improved sentiment, reducing concerns around inflation and external sector pressures. Domestic equities traded positively during the session, although the Sensex and Nifty pared early gains amid profit booking at higher levels. The Nifty 50 ended 0.4% higher, while the Midcap100 and Smallcap100 indices gained 0.5% and 0.8%, respectively. Brent crude oil plunged more than 3% to a four-month low below USD 79/bbl amid expectations of a US-Iran agreement and the potential reopening of the Strait of Hormuz. Sustained lower crude prices are positive for oil marketing companies and broader market sentiment, given their favourable impact on inflation, fuel costs and India's current account balance. Defence stocks remained in focus, with the Nifty Defence index gaining 3.9%. Sentiment was supported by India's defence production reaching a record Rs 1.78 lakh crore in FY26, reflecting 15.6% YoY growth and highlighting the continued strength of the domestic defence manufacturing ecosystem. The banking sector remains well positioned, with banking system credit growth at a robust 17.6%, supported by broad-based demand across corporate, retail and MSME segments. Improving asset quality, healthy loan growth and a favourable earnings outlook are expected to support the sector, with small and mid-sized banks appearing relatively better positioned for growth. Investors will remain watchful of the US Federal Reserve's policy outcome. While the Fed is widely expected to keep interest rates unchanged, markets will closely monitor its commentary for cues on the future rate trajectory and any shift in policy stance.
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