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Below the Daily Market Commentary for March 10th 2026 By Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities rebounded sharply, tracking positive global cues as investor sentiment improved following signs of potential de-escalation in the ongoing West Asia conflict. Markets reacted positively after US President Donald Trump signalled that the war with Iran could come to an end soon, while warning that Iran would face stronger retaliation if it attempts to block oil flows through the Strait of Hormuz.

Oil prices also retreated after surging in the previous session, helping ease concerns around global supply disruptions. Brent crude declined around 11% to ~$88 per barrel after comments from US leadership and diplomatic efforts helped calm supply fears. Meanwhile, the Indian rupee recovered from its record low, rising 7 paise to 92.14 against the US dollar as crude prices eased.

Against this backdrop, the Nifty 50 gained 1%, while broader markets outperformed the benchmark indices. The Midcap 100 index advanced 1.6%, while the Smallcap 100 rose 2.1%, reflecting strong participation across the broader market.

Sectoral performance was largely positive, with all sectors closing in the green except IT (-0.5%). Auto stocks led the gains, with the Nifty Auto index rising 3.1%, rebounding after declining nearly 5% over the previous two sessions. Consumer Durables (+2.7%), PSU (+2.2%), and Financial Services (+2.1%) also recorded strong gains.

Volatility indicators reflected easing risk sentiment, with the India VIX declining ~19% to 18.9 during the session. Going ahead, markets are likely to remain sensitive to developments in West Asia and movements in crude prices, while global macro cues will continue to guide overall risk sentiment.

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