Market Wrap: Stock Indices Fall as HDFC Bank, Metals Drag; Rupee, Bonds Weaken

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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By Dehuti Jani

Dehuti Jani is an experienced project manager who also works as an independent financial journalist.

August 27, 2026 at 1:08 PM IST

Benchmark equity indices fell on Thursday, extending losses for a second session, as weakness in heavyweights HDFC Bank, metals, PSU banks and cement stocks outweighed support from lower oil prices on hopes of easing West Asia tensions.

The Nifty 50 fell 0.48% to 24,090.85, while the Sensex declined 0.7% to 76,933.59. The Sensex’s indicative close pointed to a sharper 3.3% decline during the closing auction on the monthly derivatives-expiry day, compared with losses of 0.31% for the Nifty and 0.37% for the Sensex before the auction.

Hindalco Industries, HDFC Bank and Mahindra & Mahindra were the top Nifty 50 losers. The broader market was relatively resilient, with the Nifty MidCap and SmallCap indices falling 0.1% and 0.13%, respectively. Eleven of the 16 major sectors declined, led by a more than 1% fall in the Nifty Cement index. Pharma, private bank and realty were among the sectors that outperformed.

Brent crude hovered around $88 a barrel as Qatar’s prime minister prepared to visit Tehran to revive peace talks between the US and Iran. The decline in oil prices provided some support to Indian equities but was insufficient to offset selling in heavyweight stocks.

The rupee also weakened, ending 0.1% lower at 95.54 per dollar after briefly touching 95.4050, as importer dollar demand picked up.

Indian government bond yields rose on Thursday as concerns grew that the Reserve Bank of India may use more measures to absorb excess banking-system liquidity, and ahead of Friday’s 340-billion-rupee government securities auction. The RBI has already conducted variable-rate reverse repo auctions across several tenures. The benchmark 6.94%, 2036 bond yield ended at 6.8901%, up from 6.8488% in the previous session.

Top Movers of the day

Hindalco Industries fell 3.04% to ₹1,021.00, emerging as the biggest Nifty 50 loser, as metal stocks tracked weak global cues and investors booked profits after a recent rebound.

HDFC Bank declined around 1.75% to ₹714.45and hit a 52-week low today driven by a US new class action lawsuit filed against the bank. A shareholder filed a complaint with the US District Court in New York targeting the bank’s CEO Sashidhar Jagishan. The bank denied the claims, stating that such shareholders complaints are without merit.

Mahindra & Mahindra slipped about 1.65% to ₹3,342.10, tracking weakness across auto stocks, with no fresh company-specific negative trigger reported.

HCL Technologies fell around 1.0% to ₹1,285.70, extending weakness across IT stocks despite Nvidia’s upbeat outlook, as investors booked profits and the sector remained under pressure.

Shriram Finance declined about 1.34% to ₹1,102.50, as NBFCs came under selling pressure amid broader financial-sector de-risking.

ICICI Prudential Asset Management Company slipped 4.03% to ₹3,093 after 9.92 million shares changed hands in a block deal, creating near-term supply pressure.

Adani Energy Solutions advanced 2.71% to ₹1,613.10 after Morgan Stanley retained its Overweight rating with a ₹1,943 target price, supporting buying interest in the stock.

Bombay Burmah Trading Corporation gained 11.63% to ₹1,592 after the Supreme Court granted relief in a long-pending legal matter, reducing uncertainty around the company’s key assets.

Skipper rose 2% to ₹556.70after securing fresh orders worth ₹13.05 billion for domestic and international transmission and distribution projects, improving revenue visibility.

Juniper Green Energy declined 6.59% to ₹250 despite strong Q1 earnings, as investors booked profits following a significant run-up in the stock.

Kotak Mahindra Bank gained around 1.85% to ₹424.50, bucking weakness across private banks amid selective buying in financial stocks.

Futures & Options
The Nifty September 2026 futures closed at 24,266, a premium of 176 points to the Nifty 50’s cash-market close of 24,090.85. The Nifty declined 116.90 points, or 0.48%, during the session, while the NSE’s India VIX rose 5.06% to 11.10, signalling increased near-term volatility.

HDFC Bank, Reliance Industries and LIC Housing Finance were the most-traded individual stock futures contracts on the NSE. The September 2026 F&O contracts will expire on September 29, 2026.

Bonds
Indian government bond yields rose on Thursday as traders feared the Reserve Bank of India could deploy additional measures to absorb excess liquidity from the banking system. The benchmark 6.94%, 2036 bond yield ended at 6.8901%, its highest level since June 12 up from 6.8488% on Wednesday, while the five-year 6.36%, 2031 bond traded at ₹99.50, implying a yield of 6.4893%.

Month-end government spending could intensify liquidity concerns and prompt the RBI to drain surplus funds through an iCRR or other tools. However, FCNR(B) deposit inflows are CRR-exempt, limiting an iCRR’s effectiveness in absorbing that liquidity. Traders also remained cautious ahead of Friday’s ₹340-billion auction of the benchmark 10-year bond, with some expecting the cut-off yield to cross 6.90%.

Forex
The Indian rupee weakened 0.1% to 95.54 per US dollar on Thursday, giving up early gains as importer dollar demand picked up. The currency briefly strengthened to 95.4050 before reversing course. After Wednesday’s bank holiday, the market absorbed two days of inflows, pushing the one-day USD/INR swap cost to roughly four times recent levels, traders said, reflecting heavy dollar liquidity with banks.

Inflows under the RBI’s FCNR(B) deposit scheme were a key driver of the dollar liquidity build-up. With the RBI’s subsidised FCNR(B) swap window for fresh deposits set to close on Monday, markets expect further large inflows over the next few sessions.

Crypto
The crypto market capitalisation rose 0.87% to $2.67 trillion, with Bitcoingaining more than 1% to $79,729.55 and Ethereum up 2.48% at $2,523.65. Crypto ETFs remained supportive, with Bitcoin, Ethereum and XRP funds attracting inflows of $31.36 million, $192 million and $28.14 million, respectively.

Sentiment was also helped by reports that the SEC has proposed revising custody rules for investment advisers and funds, while Nvidia’s $108 billion Q3 revenue guidance reinforced optimism around AI-related risk assets. Markets will watch the Fed’s September 15–16 meeting and progress on the Clarity Act for further catalysts.

US Stock Futures
US stock futures rose early Thursday as investors parsed Nvidia's stronger-than-expected earnings and upbeat revenue outlook. Dow Jones Industrial Average futures were marginally higher, while S&P 500 futures gained 0.4% and Nasdaq 100 futures jumped 1%.

Nvidia shares surged in premarket trading after the chipmaker beat analyst expectations, with fiscal second-quarter revenue more than doubling and exceeding forecasts by the widest margin in two years. The results and strong outlook lifted sentiment across technology stocks and provided a boost to broader US equity futures.

US Treasury Notes
The 10-year US Treasury yields held steady on Thursday, with the 10-year yield at 4.668% and the 30-year yield at 5.189%, as investors adopted a cautious stance ahead of key employment data and the Federal Reserve’s Jackson Hole symposium. Yields had risen earlier in the week after sticky July inflation strengthened expectations for a restrictive Fed policy.

A near-4% fall in crude oil prices, helped by safe-shipping corridor talks between Iran and Oman, provided some relief on inflation risks. However, traders remained reluctant to take large positions ahead of Fed Chair Kevin Warsh’s closely watched speech for clues on the policy outlook.

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