Quote on Daily Market Commentary for June 19th 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd
Below the Quote on Daily Market Commentary for June 19th 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd
Domestic markets witnessed some consolidation on Friday after the recent three-day upmove, with the Nifty 50 ending 0.65% lower, largely dragged by a sharp sell-off in IT stocks. Despite the weakness, broader sentiment remained resilient, with the Nifty Midcap 100 and Nifty Smallcap 100 advancing 0.2% and 0.4%, respectively. Sentiment was supported by easing geopolitical concerns, with Brent crude prices declining 1% to USD 78.79/bbl and the rupee strengthening by ~79 paise during the week to around 94.35/USD. The improved geopolitical backdrop is expected to lend support to market sentiment heading into next week. IT emerged as the biggest laggard, with the Nifty IT index plunging 6.5% after Accenture lowered its FY26 constant-currency revenue growth guidance to 3%-4% from 3%-5% earlier and issued a weaker-than-expected outlook, raising concerns over demand trends across the global technology sector. A key development during the week was the signing of a 14-point MoU between the US and Iran. The agreement included the reopening of the Strait of Hormuz, removal of the naval blockade and restoration of commercial shipping, marking a significant step towards de-escalation following months of heightened tensions. Investors also remain watchful of the monsoon situation, with cumulative June rainfall so far tracking 38% below normal amid ongoing El Niño conditions. Any further delay in monsoon progression could heighten concerns over kharif sowing, food inflation and rural demand. Sectorally, Nifty Pharma and Nifty Defence outperformed, gaining 0.7% each. We remain constructive on the defence sector, which has rallied 6.6% over the past week, supported by strong underlying fundamentals. Domestic defence production reached a record ?1.78 trillion in FY26, reflecting 16% YoY growth, while major procurement programmes, including the ?30,000 crore MALE drone project, continue to advance. Continued policy support under the Atmanirbhar Bharat initiative, rising indigenisation and expanding export opportunities are expected to underpin the sector's growth over the medium term
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