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Below the Daily Market Commentary for February 26th 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

We expect markets to remain range-bound amid a mixed global backdrop, with stock-specific action driven by domestic demand themes and policy-linked opportunities. In the current environment of heightened global volatility, we recommend focusing on domestic-facing sectors such as PSU banks, autos, healthcare, metals and capital goods, where demand visibility remains relatively stronger. Within autos, ancillaries appear well positioned, supported by robust domestic demand, the ongoing EV transition and improving export prospects following recent free trade agreements. Defence is also expected to remain in focus. India is likely to formalise $8.6 billion in defence agreements with Israel, including full technology transfer of the Iron Dome and Iron Beam systems — a strategic milestone that could materially strengthen India’s domestic defence manufacturing ecosystem. Additionally, the Canada–India leadership meet scheduled on Wednesday, aimed at expanding partnerships across defence, energy, technology and AI, and could further support sentiments in the market.

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