Quote on Daily Market Commentary for May 15th, 2026 by By Siddhartha Khemka - Head of Research, Motilal Oswal Financial Services Ltd
Below the Quote on Daily Market Commentary for May 15th, 2026 by By Siddhartha Khemka - Head of Research, Motilal Oswal Financial Services Ltd
Indian equities are expected to trade in a broader range in the near term, as elevated crude oil prices, persistent rupee weakness, and continued volatility in foreign flows keep overall market sentiment cautious. The rupee remained under pressure and touched a fresh record low of 96.05 against the US dollar, reflecting concerns around India's external balances amid rising crude prices and global uncertainty. With the Q4FY26 earnings season nearing completion, markets are increasingly expected to shift focus towards global macro developments, currency movements, commodity trends, and policy signals. Domestic equities remained under pressure on Friday, with the Nifty 50 declining 0.2%, while the Midcap 100 and Smallcap 100 indices fell 0.5% and 0.6%, respectively. Benchmark indices had initially opened higher supported by bargain buying in beaten-down stocks and optimism surrounding the ongoing US-China discussions. However, markets pared early gains around noon amid profit booking at higher levels and surging crude oil prices, while by late afternoon investors turned increasingly cautious, leading indices to slip into negative territory as brent surged. Sectorally, IT emerged as the key outperformer (+1.3%), the rebound in IT stocks followed a sharp correction of nearly 7% over the previous four trading sessions, as investors selectively accumulated export-oriented names amid rupee weakness and attractive valuations. On the other hand, selling pressure was visible across Metals (-1.9%), Defence (-1.8%), and Oil & Gas (-1.7%) stocks. The Oil & Gas index came under pressure after the Government increased petrol and diesel prices by INR 3 per litre across metro cities and raised compressed natural gas prices by INR 22 per kilogram. The calibrated fuel price hike suggests a gradual pass-through approach aimed at balancing fiscal considerations without triggering a sharp spike in cost-push inflation. Pharmaceutical stocks are expected to remain in focus going forward, supported by persistent rupee weakness, improving export competitiveness, and continued strength in domestic healthcare demand. The sector is also likely to benefit from its relatively defensive earnings profile amid ongoing global macro uncertainty and rising volatility across broader markets. Foreign Institutional Investors turned net buyers on Thursday after purchasing equities worth 187 crore, marking their first net buying session in May and offering some support to broader market sentiment.
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