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Below the Quote on Daily Market Commentary for October 22nd 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian markets are likely to remain weak amid escalating geopolitical tensions and rising crude oil prices, which are fuelling inflation concerns. Brent crude surged around 2% to USD 111/bbl after renewed Houthi attacks on Saudi Arabia raised fears of supply disruptions. Stock-specific action is likely to continue as the 2QFY27 earnings season progresses, with Infosys, Adani Power, JSW Steel, Shriram Finance, Torrent Pharma, Tata Motors and CG Power scheduled to report results on October 23. Key US data due today include initial jobless claims and S&P Global manufacturing and services PMI. The Nifty 50 declined 0.5%, extending its recent sell-off amid weak global cues and elevated crude prices. Midcap100 and Smallcap100 fell 0.9% and 1.1%, respectively, as risk appetite remained subdued. Sectorally, all major indices ended in the red. Nifty FMCG declined 1.4%, weighed down by Nestlé India, which fell over 2% after the Food Safety and Standards Authority of India issued notices over alleged misleading claims and non-compliant promotions involving certain products. Higher crude prices and concerns over input costs added to sectoral pressure. Nifty IT fell 1% amid broad-based selling after the recent run up and caution ahead of the US Federal Reserve’s October 27–28 policy meeting. Nifty Auto declined 0.7 %, tracking the broader market weakness. The minutes of the RBI’s October 5–7 Monetary Policy Committee meeting, released on October 21, highlighted concerns over broadening inflationary pressures. While all members supported a 25-basis-point repo rate hike to 5.50%, two members opposed the shift in stance from neutral to calibrated tightening. We expect the RBI to deliver a cumulative rate hike of 100bp over the current tightening cycle, taking the repo rate toward 6.25%.

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