Motilal Oswal sees 6% Q4 earnings growth for Nifty 50 amid Iran-US tensions

The auto sector faces headwinds from rising commodity costs and potential demand shifts due to geopolitical tensions. Volume growth and discounting will be key indicators to watch.

Maintain a cautious stance on auto stocks; look for signs of sustained volume growth and easing commodity prices before considering long positions.

For Indian markets, this story mainly matters for the Financials, Metals, Telecom pocket. The current signal is mixed, so traders should watch whether the effect spreads across the sector or stays limited to a single name.

Watch whether the market validates this read through price action, volume, and breadth. If the headline matters, the signal should show up in execution, not just in commentary.

• •Motilal Oswal forecasts 6% YoY earnings growth for Nifty 50 companies in Q4 FY26.
• •Growth is expected to be driven by financials, metals, and telecom sectors.
• •Overall growth is anticipated to be softer due to the Iran-Israel-US conflict's impact on energy prices and supply chains.
• •Risk flag: Rising crude oil prices impacting input costs and consumer spending
• •Risk flag: Geopolitical instability affecting global supply chains