IGI Logo

Below the Quote on Daily Market Commentary for August 14th 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities are likely to remain range-bound next week as global cues and macro developments assume greater importance following the conclusion of the Q1FY27 earnings season. Going forward, stock-specific action is likely to become more selective as investors assess the sustainability of the earnings recovery and broader domestic fundamentals. Developments in West Asia, crude oil prices and global sentiment will remain the key near-term drivers. Brent crude above US$87/bbl amid renewed US-Iran tensions, keeping supply disruption concerns elevated, although gains were capped by weaker demand expectations and higher US inventories. Domestic equities traded on a weak note on Friday, with the Nifty 50 declining 0.1% to close at 24,366, although value buying at lower levels, a firmer rupee and easing volatility helped limit the downside. The index declined 0.8% during the week. Broader markets underperformed, with the Nifty Midcap 100 and Nifty Smallcap 100 declining 0.5% and 0.7%, respectively. Sectorally, Media and Consumer Durables outperformed, while Pharmaceuticals, Metals and Auto were among the key laggards. The improving monsoon provides some offset, with the cumulative rainfall deficit narrowing to 12% of the Long Period Average as of August 12 from 38.6% in June, supporting kharif sowing and easing food inflation concerns. FY27 GDP growth is estimated at 6.8–7.0% and CPI inflation at 5.1%. Meanwhile, India's trade deficit widened to US$32bn in July, though strong electronics, engineering and chemicals exports should keep external balances manageable. Going ahead, investors will track the US Federal Reserve's July meeting minutes and US crude inventory data, followed by India's infrastructure output and August flash Purchasing Managers' Index (PMI) readings later in the week. Developments in West Asia and movements in crude oil prices will remain key variables for domestic equities.

Above views are of the author and not of the website kindly read disclaimer