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Below the Quote on Daily Market Commentary for May 29th 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

ndian equities are expected to remain cautiously optimistic amid renewed geopolitical tensions in West Asia. Market participants will closely monitor the US-Iran negotiations in Qatar, with initial discussions centred on ensuring safe navigation through the Strait of Hormuz. Until there is greater clarity on the durability of the ceasefire, geopolitical developments are expected to remain a key driver of global sentiment. Against this backdrop, investors are expected to favour defensive sectors such as Pharmaceuticals, Healthcare, FMCG and Financials, while oil-sensitive sectors including OMCs and Aviation could benefit from lower crude oil prices. The progress of the southwest monsoon will also remain a key monitorable, with implications for food inflation and rural demand. Domestic markets ended lower on Monday, with the Nifty 50 declining 0.5% (-110 points) to close below the 24,000 mark at 23,946. The weakness was driven by profit booking following renewed geopolitical tensions over the weekend, along with selling pressure in Information Technology and Auto stocks. Broader markets also ended lower, with the Nifty Midcap 100 and Smallcap 100 declining 0.4% and 0.6%, respectively. Sectorally, Pharmaceuticals (+1%), Healthcare (+0.9%) and Metals (+0.8%) outperformed, while Auto (-2%), Cement (-1.4%) and Media (-1.3%) were among the key laggards. Market volatility also edged higher, with India VIX rising 4%. On the diplomatic front, India and Seychelles signed 19 agreements covering defence, maritime security, UPI-based digital payments, healthcare and space cooperation, reinforcing India's strategic presence in the Indian Ocean Region while creating long-term opportunities across defence, digital infrastructure and healthcare. Going forward, investor focus will remain on developments in West Asia, energy prices, the progress of the southwest monsoon and activity in the primary market. Key macroeconomic releases this week include India's industrial output and Eurozone inflation, followed by UK GDP, global PMI readings and the US non-farm payrolls report, which will provide further cues on the Federal Reserve's policy outlook and global risk sentiment.

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