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Daily Market Commentary for April 22nd 2026 By Siddhartha Khemka - Motilal Oswal Financial Services Ltd

Indian markets are expected to consolidate in the near term as investors continue to monitor developments in the US–Iran conflict and the ongoing US blockade of the Strait of Hormuz. While the benchmark indices may remain sideways, the broader market is likely to continue seeing stock- and sector-specific action driven by March quarter earnings and sector specific news flows. Sectors such as power, transmission, capital goods, renewables, sugar, defence and consumer are likely to remain in focus. On Wednesday, Indian markets opened on a negative note and remained under pressure throughout the session, after the ceasefire deadline expired. Nifty closed below 24,500 at 24,378 (-0.8%) and snapping its three-day winning streak. The decline was driven by weak global cues, renewed concerns around the West Asia conflict and elevated crude oil prices (remained near $98 per barrel), despite a slight dip. A sharp selloff in IT stocks and profit booking after the recent rally further added to the weakness. India VIX over 6%, reflecting heightened caution amid persistent geopolitical uncertainty. Despite the weakness in the benchmark indices, the broader market remained resilient. The Midcap100 gained 0.2%, while the Smallcap100 rose 1.1%, showing that investors continued to buy selectively in smaller companies. The IT sector was the biggest drag on the market. The sector is facing multiple challenges, including lower spending by telecom clients, delays in new deals because of uncertainty in the US and weak demand for discretionary projects. At the same time, the growing use of artificial intelligence is putting pressure on pricing for traditional IT services companies. Recent commentary from IT companies has remained cautious, and results from companies like Infosys and LTM on Thursday will be important in understanding how demand and margins may trend in FY27. In contrast, the FMCG sector has shown more resilience. Strong quarterly performance from Nestlé has boosted confidence that domestic consumer demand remains steady, which is aiding investor’s interest in the sector. Looking ahead, markets are likely to remain highly sensitive to geopolitical developments and foreign investor activity. Foreign institutional investors have continued to sell despite occasional market recoveries, and their flows will remain an important factor. The ongoing earnings season will also drive stock-specific movement, with key results due on Thursday from Infosys, Union Bank of India, Cyient and Aditya Birla Sun Life AMC.

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