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Below the Quote on Market Commentary 22nd August 2025 by Siddhartha Khemka - Head Of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Nifty ended 0.85% lower at 24,070, snapping its six-day winning streak as investors turned cautious ahead of Federal Reserve Chair Jerome Powell’s policy remarks at the Jackson Hole symposium. Profit booking also weighed on markets, amid caution ahead of the approaching secondary tariff agreement deadline. Broader indices followed suit, with the Nifty Midcap100 down 0.1% and Smallcap100 down 0.3%. On the sectoral front, the pressure was led by Nifty Metal (-1.25%) and Nifty PSU Bank (-1.12%). On the other hand, hospital stocks remain in focus, with the sector maintaining stable momentum in Q1FY26. Revenue grew 16.5% YoY while EBITDA rose 20.5%, supported by capacity additions and improved efficiencies. With listed players planning to add 14,000 beds over FY25–27 (a 35% jump from the current 39,000 capacity) and aggregate occupancy at 59%, the sector offers room for sustained growth. On the macro front, Japan is expected to unveil a decade-long investment target of ¥10 trillion (~$68 billion) in India during Prime Minister Modi’s upcoming visit—an upgrade over the earlier five-year target—underscoring deepening Indo-Japan economic cooperation. Globally, markets are watching the U.S. Fed closely. The July FOMC meeting reflected a rare split, with two governors pushing for a 25 bps rate cut, the first such dissent since 1993. Combined with a softer U.S. jobs report, expectations of a rate cut in September have strengthened, potentially benefiting emerging markets like India. We expect Indian equities to remain supported by optimism around GST 2.0 reforms and domestic macro strength. Globally, clarity on U.S. tariff actions against India and upcoming GDP data from both India and the U.S. will shape investor sentiment. 

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