Quote on Daily Market Commentary for September 4th 2026 by Siddhartha Khemka - Motilal Oswal Financial Services Ltd
Below the Quote on Daily Market Commentary for September 4th 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd
Markets are likely to see some relief, supported by easing expectations of a near-term US Fed rate hike and softer global bond yields. However, elevated Brent crude around US$95/bbl and continued West Asian tensions remain key risks to the recovery. Indian equities ended marginally higher on Friday, with the Nifty 50 gaining 0.1% to 23,898, supported by positive global cues and easing expectations of a near-term US Fed rate hike. Brent crude rose 0.3% to US$95.4/bbl, while the rupee strengthened to Rs94.4/US$. Broader markets were mixed, with the Nifty Midcap 100 declining 0.2% and Smallcap 100 gaining 0.2%. Metals outperformed, while Realty, Healthcare and Chemicals were among the key laggards. Domestic silver prices have corrected over 40% from the January peak of above Rs4 lakh/kg to around Rs2.35 lakh/kg, but investment demand remains subdued, raising concerns over dealer inventories. Around 2,000 tonnes of silver ordered by Indian dealers could add to the inventory overhang if demand does not recover. FCNR(B) deposits have crossed US$127bn under the RBI’s special concessional window, with total inflows including OFCBs and ECBs reaching US$136.4bn. The strong inflows have supported the rupee, while the impact on banks’ margins is expected to be limited given the regulatory benefits and deployment potential of these funds. The primary market remains active, with 11 mainboard IPOs scheduled to open next week, targeting over Rs7,000 crore in aggregate. Several companies are also lined up for listing, keeping primary-market activity elevated despite the cautious secondary-market backdrop. Going ahead, crude prices and developments in the West Asian conflict remain key risks, while investors will track global rate expectations and domestic liquidity. The US employment data released today will be important for the Fed’s policy outlook. Investors will also watch the US ISM Services PMI, the ECB’s monetary policy decision, the OPEC Monthly Oil Market Report and India’s foreign exchange reserves.
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