Quote on Market Commentary for 02nd April 2026 by Ajay Menon, MD & CEO - Motilal Oswal Wealth Management
Below Quote on Market Commentary for 02nd April 2026 by Ajay Menon, MD & CEO - Wealth Management, Motilal Oswal Financial Services
Equity markets witnessed a sharp correction today after the fresh comments from US President dashed hopes of a near term resolution, while raising the rhetoric over the continued “extremely hard” attacks on Iranian power and oil infrastructure. While the BSE Sensex fell over 1,500 points (-2.1%), the Nifty 50 declined by 475 points (-2.1%) to trade near 22,200 levels.
Trump’s statement that the U.S. could strike Iran “extremely hard” over the next 2–3 weeks, without offering any clear timeline for de-escalation, has significantly heightened near-term geopolitical uncertainty. This has unsettled global markets, with Asian equities also trading lower, and triggered a sell-off move across asset classes. Brent Crude surged ~6% to $107 per barrel, while the U.S. 10-year bond yield firmed up to 4.36%, both of which are negative for markets.
The escalation in geopolitical tensions today aggravated the already cautious stance, accelerating the pace of decline. Volatility also picked up, with India VIX rising 5%, reflecting heightened nervousness. The decline was further exacerbated by continued FII selling is the last few weeks. On Wednesday foreign investors sold another ?8,331 crore equities, even after a multi-year record selling of over Rs1.22 lakh crore only in the month of March since the start of Iran war.
Given the holiday-shortened trading week and heightened sensitivity to global cues, the Near-term sentiment is expected to remain volatile and headline-driven, with further direction contingent on developments in the US–Iran conflict and movements in global energy prices.
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