IGI Logo

Below the Quote on Daily Market Commentary for September 17th 2026 by Siddhartha Khemka, Motilal Oswal Financial Services Ltd

Indian equities are likely to remain cautiously positive, with the US Federal Reserve's first-rate hike since 2023 now largely priced in and Brent crude easing 1.5% to USD 103.80/bbl offering some relief. The Fed raised its policy rate by 25bps to 3.75–4.00%, citing persistent inflation while flagging further increases ahead. Projections point to one more 25bps hike by December, taking the rate to 4–4.25%, with the Committee signalling a hold at that level through 2027. Inflation is now expected to return to the 2% target only by 2029, a year later than previously projected. On Thursday, Nifty 50 closed at 23,271 (+0.2%) extending gains for the second consecutive session, Midcap100 rose 1% and the Smallcap100 gained 0.7%. India VIX declined 7%, indicating easing near-term volatility. Nifty Pharma, Healthcare and Realty led the gains, while Private Banks, PSU Banks and Oil & Gas lagged. Brent eased 1.7% to USD 104/bbl, its lowest level in a week, offering some relief, though sustained levels above USD 100/bbl remain a headwind for margins and the current account. Primary-market activity remained the key highlight, with the Rs 22,562 crore NSE IPO opening for subscription, priced at Rs 1,700–1,785 per share. Six companies listed during the session to a broadly firm response, led by Rentomojo, Steamhouse India, Karamtara Engineering and LCC Projects, while Manipal Payment & Identity Solutions and Asset Reconstruction Co. listed at a discount. On the policy front, a US bill raising the threat of a 100% tariff over Russian oil purchases has emerged as a fresh overhang for trade-sensitive sectors, with India indicating preparedness to take all necessary measures. The government reduced export levies on petrol, diesel and ATF, lowering the diesel levy by Rs 5/litre to Rs 20 and the ATF levy by Rs 4/litre to Rs15, which should support refining margins and export competitiveness for downstream oil & gas companies. Investors will track the Bank of England's rate decision due later today and the Bank of Japan's decision tomorrow, along with India's bank credit and deposit growth and US industrial activity data, while crude prices, the rupee and global yields remain key monitorable.

Above views are of the author and not of the website kindly read disclaimer