Quote on Daily Market Commentary for May 19th 2026 By Siddhartha Khemka - Head of Research, Motilal Oswal Financial Services Ltd
Below the Quote on Daily Market Commentary for May 19th 2026 By Siddhartha Khemka - Head of Research, Motilal Oswal Financial Services Ltd
Markets are likely to remain sideways to under pressure in the near term despite Foreign Institutional Investors turning net buyers, as persistent weakness in the Indian rupee and elevated crude oil prices continue to weigh on overall market sentiment and limit broad-based upside momentum. The recent weakness in domestic markets is largely being driven by continued depreciation in the Indian rupee, which has been hitting fresh lows against the US dollar, while elevated crude oil prices, widening trade deficit, and a strengthening dollar index continue to pressure the domestic currency and weigh on investor sentiment. On Tuesday, the Nifty fifty closed marginally lower at 23,618 (-0.1%), while broader markets outperformed, with the Midcap100 and Smallcap100 indices gaining 0.8% and 1%, respectively. On the sectoral front, the IT sector is witnessing some recovery in the last few days on the back of weak rupee, with the Nifty IT index gaining 5.7% in the last 2 trading sessions. Simultaneously, the pharmaceutical sector is also expected to remain in focus, supported by strong quarterly performance, improving earnings visibility, and currency-led tailwinds given its significant export exposure. The International Sugar Organization (ISO) projects the global sugar market to shift into a deficit of 2.62 lakhs tonnes in 2026/27. This could elevate sugar prices globally, benefiting Indian sugar companies through improved realizations and stronger domestic pricing sentiment. However, India’s continued ban on sugar exports to protect domestic supplies and contain food inflation may limit export-related gains for the sector in the near term
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