IGI Logo

Below the Quote on Daily Market Commentary for September 7th 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities are likely to remain under pressure amid weak global cues, elevated crude prices and continued concerns over supply disruptions following the latest escalation in US-Iran hostilities around the Strait of Hormuz. Brent crude, traded 0.4% higher at USD 96.7/bbl. While the secondary market remains lacklustre, India's primary market continues to see strong action, with 12 IPOs opening this week (7th–11th September) aiming to raise a combined ~Rs 7,000 crore, one of the busiest weeks of the current IPO cycle. The Nifty 50 declined 0.5%, while Midcap100 fell 0.5% and Smallcap100 remained nearly flat at +0.02%. Sectorally, Nifty Auto and Nifty Pharma were the only indices in the green, with Nifty Pharma gaining 0.4% as investors pivoted towards defensive sectors amid the broader market weakness and consolidation. Nifty IT declined 2.3%, with IT shares witnessing sharp selling pressure; Infosys and Tata Consultancy Services were among the major laggards. The weakness followed stronger-than-expected US jobs growth data, which boosted expectations of a September interest-rate hike by the Federal Reserve. Defence stocks remained in focus ahead of today’s Defence Acquisition Council (DAC) meeting, chaired by Defence Minister. The DAC is expected to consider the overhaul of around 40 Su-30MKI fighter jets and procurement of 2,500 indigenously developed Software Defined Radios (SDRs), estimated at around Rs 5,000 crore. The Nifty Defence index gained 0.5%. SEBI's announcement that it will review the derivative settlement methodology at expiry kept capital market stocks in focus. The Nifty Capital Markets index gained 0.8%. New demat account additions rose to around 3.27 million in August 2026, the strongest monthly pace in seven months and the third consecutive month of improvement, alongside a strong revival in IPO activity that attracted fresh and first-time retail participants. The 57th GST Council meeting, originally scheduled for September 12, 2026, has been postponed to October 7, 2026, in New Delhi. Key economic data to watch includes EU GDP due later today, followed by Japan GDP tomorrow.

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