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Below the Quote on Daily Market Commentary for October 01st 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities are likely to stay under pressure in the near term as a record global bond rout, renewed strength in crude and the heaviest foreign selling in six months weigh on sentiment. The US 10-year Treasury yield has broken past its 2007 peak to 5.3%, the highest since April 2002, with the 30-year at 5.6%. With Nifty's earnings yield now below what US government debt pays, a sustained recovery is unlikely until global yields stabilise, crude eases and foreign outflows moderate. The Nifty fell 0.9% to 22,422, touching an intraday low of 22,217, extending its losing run to an eighth straight week with a 3.1% weekly decline. The Midcap100 and Smallcap100 each fell 1%. IT was the lone sector to advance 2.1%, while Auto was the top sectoral loser at -3.5%, Bajaj Auto fell 7.6% on weak September domestic volumes and Nifty Metals (-2.3%) and Media (-2.3%). FIIs sold Rs 10,148 crore on Wednesday, the largest single-day outflow in nearly six months and a fifth consecutive session of selling. DIIs absorbed it with Rs 11,272 crore of buying, the highest of the month. Crude turned higher again, with Brent back above the USD 100 mark at $100.7/bbl, up 2.7%, after Chinese refiners suspended October product exports beyond Hong Kong and Macau through the Golden Week holiday to protect domestic supply. The manufacturing PMI rose to a seven-month high of 55.1 from 52.8, with the sharpest output expansion in four months and hiring at its fastest since May. GST collections crossed Rs 2 lakh crore for a third straight month, up 14.7% to Rs 2.04 lakh crore. The PMI's Q2FY27 average of 53.8 is the weakest since 2021, and the GST growth is import-led, with import revenue up 25.9% against domestic growth of 10.1%. On policy front, the Cabinet cleared the Rs 1.86 lakh crore PM-DHARA (Green Energy Corridor) scheme Phase III to evacuate 135 GW of renewable energy and deploy 50 GWh of battery storage by FY33, with Rs 54,082 crore of central support. The market read it selectively, bidding up transmission and equipment names by as much as 10% while power generation stocks fell. Next week's defining event is the RBI policy and the GST Council meeting on GST 2.0 process reforms on Wednesday 7^th October, while globally the US jobs report and the trajectory of Treasury yields remain the key drivers. Indian markets are closed on Friday, 2 October, on account of Gandhi Jayanti.

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