Several of the headwinds that weighed on Indian equities over the past year have begun to ease, according to Motilal Oswal Private Wealth’s latest Alpha Strategist report for August 2026, titled “Clearing Skies”. The firm, however, continues to maintain a Neutral view on equities while retaining its Overweight stance on mid and small caps.
The report said Indian equities had faced geopolitical uncertainty, capital flows towards the AI-led rally in the US and North Asia, persistent FII selling, pressure on the rupee and insufficient domestic earnings momentum over much of the past year. “Over the last 2–3 months, however, several of these clouds have begun to disperse and skies are gradually clearing,” it said.
