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Below the Quote on Daily Market Commentary for September 21st 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities are likely to extend their recent recovery, supported by moderation in Brent crude, improving global markets and resilient domestic fundamentals. Brent has eased to around USD101/bbl from recent highs, providing some relief. Moody’s raised India’s FY27 GDP growth forecast to 7% from 6%, citing the economy’s resilience amid global and geopolitical challenges. Robust tax collections also point to healthy economic activity, with net direct tax collections rising 13% YoY to Rs 12.12 lakh crore as of Sept 17, supported by strong advance-tax payments. The near-term trend will also depend on whether the improvement in external cues are sustained. US bond yields remain elevated, with the 10-year yield near 5%, while India’s 10-year G-sec yield has risen to 7%, keeping financial conditions relatively firm. The rupee also remains near 96/USD, although further moderation in crude could provide some relief. On Monday, the Nifty gained 0.3% to 23,414, extending its winning streak to four sessions, supported by easing energy prices and positive global cues. Midcap 100 declined 0.3% and Smallcap 100 remained flat, indicating that the recovery is currently more concentrated in large caps rather than broad-based. India VIX fell 1%. Pharma (+1.2%), Realty (+1.1%), Healthcare (+1.1%) and FMCG (+0.9%) led sectoral gains, while Metals (-0.6%) remained the key laggard. FIIs turned buyers with purchases of around ?600 crore on Friday, providing some support to market sentiment. India’s oil import bill increased 48% YoY to USD75 billion during April-August, highlighting the impact of elevated crude prices on the external account. This week, markets will track India’s August infrastructure output today, September flash PMI on Wednesday and the US-China summit on Thursday, along with movements in global bond yields and crude prices for further direction.

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