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Below the Quote on Daily Market Commentary for March 11th 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities are likely to remain volatile driven by developments in the West Asia conflict, sharp movements in crude oil prices and continuous foreign fund outflows. On Wednesday, markets resumed their downward trajectory after a brief rebound in the previous session, as persistent foreign fund outflows and selling in banking, financial services and automobile stocks weighed on benchmark indices. The decline was further aggravated by heightened geopolitical tensions in the West Asia after US and Israel launched some of their heaviest strikes on Iran, keeping investors cautious even as US signalled the possibility of de-escalation. Investor sentiments may remain fragile as geopolitical tensions continue to weigh on global risk appetite. Meanwhile, oil prices saw a temporary pullback after reports suggested the International Energy Agency is considering a record release of strategic reserves to stabilise crude markets. The Nifty 50 closed lower at 23,866, down 394 points (-1.6%). Despite the previous session’s rebound, the index has declined over 5% across seven sessions in March. Broader markets showed mixed performance, with the Midcap 100 and Smallcap 100 indices slipping 1.2% and 0.3%, respectively, as relief from the potential strategic reserve release remained limited. The India VIX rose over 8%, to trade at 20.5, signalling expectations of increased short-term market volatility. On the sectoral front, Auto and Private Banks were the worst performers. The Nifty Auto index declined 3.1% as the sector continued to face multiple headwinds, including higher raw material costs and persistent supply chain challenges, particularly semiconductor shortages affecting production. On the domestic front, gas related stocks were in focus after the government prioritised LPG supply and encouraged higher domestic production amid supply concerns linked to the ongoing US–Iran tensions. Meanwhile, LPG prices were increased over INR60 for a 14.2 kg non-subsidised household cylinder across major cities, as Brent crude surged to a four-year high, nearly USD92.8 per barrel amid disruptions to global energy supplies caused by escalating West Asian tensions. Separately, the cabinet has approved the extension of Jal Jeevan Mission 2.0 with an outlay of INR8.69 lakh crore which is expected to support capital goods, pipes and fittings, EPC contractors and infrastructure companies. The programme will require large-scale investments in water pipelines, pumps, treatment plants and rural distribution networks, potentially improving order inflows and revenue visibility for companies involved in water infrastructure and project execution

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