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Below the Quote on Daily Market Commentary for May 23rd 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities are expected to trade sideways with a marginal negative bias in the near term amid weak global cues, continued Foreign Institutional Investor outflows, and uncertainty surrounding the proposed US-Iran ceasefire. Profit booking emerged after the Nifty had rallied ~4.1%, over the previous seven sessions, supported by lower crude oil prices and moderation in foreign outflows following measures aimed at supporting the rupee. The Nifty 50 declined 1.2%, while the Midcap 100 and Smallcap 100 indices fell 1.1% and 0.5%, respectively. Meanwhile, the India VIX rose over 9% to around 14, signalling an increase in near-term market volatility. IT stocks remained under pressure, with the Nifty IT index declining after brokerages including Jefferies and Morgan Stanley flagged softer demand trends following a weaker-than-expected outlook from Accenture. Metal stocks also witnessed sharp selling, with the Nifty Metal index falling up to 3% tracking a ?drop in ?global metal prices after the previous session's uptick. Rising expectations of a potential U.S. rate hike this year also weighed on sentiment. Pharmaceutical stocks emerged as the strongest pocket of the market. Sentiment improved after reports indicated that the US FDA had approached Indian drug manufacturers through the Indian Drug Manufacturers' Association (IDMA) to help address a shortage of ifosfamide injection, a chemotherapy drug used in the treatment of multiple cancers. This development is expected to create near-term opportunities for select Indian pharmaceutical companies.

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