Equities Extend Losing Streak As West Asia Tensions Keep Oil, Yields Elevated

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

August 18, 2026 at 12:41 PM IST

Indian equity benchmarks extended their losses on Tuesday as fading hopes of an imminent end to the Iran war kept crude oil prices elevated, fuelling inflation concerns and weighing on risk appetite. The Nifty50 fell 132.75 points, or 0.55%, to 24,154.90, marking its sixth straight session of losses, while the Sensex declined 492.70 points, or 0.63%, to 77,235.46.

Twelve of the 16 major sectors declined, with Nifty IT and Nifty Realty recording the sharpest losses. Tata Motors Passenger Vehicles, Asian Paints, Wipro, HCLTech and Infosys fell more than 2% each. Nifty Healthcare and Auto outperformed, while the Nifty MidCap 100 fell 0.43% and the SmallCap index ended flat.

Brent crude hovered around $91 per barrel, up about 9% in less than two weeks, as stalled US-Iran negotiations and threats of renewed hostilities raised concerns over energy supplies. Elevated global bond yields also reduced the relative attractiveness of emerging-market assets, with foreign investors having sold a record $25 billion of Indian equities so far in 2026.

Indian government bonds recovered most of their intraday losses as state-owned banks stepped in to buy gilts at lower levels. The benchmark 6.94%, 2036 bond yield ended at 6.8269%, compared with 6.8071% on Monday, after rising to an intraday high of 6.8503%.

The Indian rupee closed at 95.68 per US dollar, marginally weaker than 95.6025 in the previous session. Market participants said that RBI had intervened in the foreign exchange market to support rupee against the dollar.

Top Movers of the Day

Milky Mist Dairy Food surged 29.65% to ₹181.50, hitting the upper circuit after listing at ₹165, an 18% premium to its IPO price of ₹140, following strong subscription demand.

Tube Investments of India gained 8.19% to ₹2,966.00, as April-June revenue rose to 22.28 billion rupees, although net profit declined 5% year-on-year to ₹1.59 billion rupees.

HEG advanced 6.57% to ₹744.20, supported by buying in graphite-electrode and industrial stocks. The share price rose after its April-June standalone net profit surged 52% year-on-year to ₹1.10 billion.

Welspun Living gained 5.53% to ₹177.45, extending its three-session rally on strong volumes as April-June revenue jumped 23.5% year-on-year.

Techno Electric & Engineering climbed 4.78% to around ₹1,005, supported by strength in power infrastructure and transmission-related stocks.

Aegis Logistics rose 6.51% to ₹1,371.00, on reports that the company is in advanced acquisition talks with UAE-based oil and gas logistics firm Tristar.

Biocon gained 1.71% to ₹419.05, after the company received supplemental USFDA approval for the Yesintek single-dose prefilled autoinjector in 45 mg and 90 mg formats.

BSE declined 0.70% to ₹3,308.80 after Jefferies downgraded the stock to Underperform and Nuvama cut its rating to Hold from Buy, adding to sustained selling pressure.

Strides Pharma Science declined 3.86% to around ₹949.00, as investors booked profits despite strength in selected pharmaceutical stocks and lingering macroeconomic pressures affecting exporter sentiment.

GE Power India fell 3.78% to around ₹703.50, with capital-goods and power-equipment stocks coming under pressure, while a high liability-to-equity ratio weighed on investor sentiment.

Colgate-Palmolive India slipped 3.11% to ₹1,903.00, after its Investor Day presentation failed to provide a strong near-term catalyst, while FMCG stocks remained under pressure.

Bonds
Government bond yields came off highs as state-owned banks stepped in to buy gilts at higher yield levels. The benchmark 6.94%, 2036 bond yield ended at 6.8269%, compared with 6.8071% at the previous close, after touching an intraday high of 6.8503%.

State-owned banks picked up government securities as the 10-year benchmark yield hovered around 6.82%-6.85%, levels seen as attractive for buying. However, Brent crude remained above $91 per barrel, keeping traders cautious about the outlook for inflation and yields. Demand at the state government securities auction was firm, with several papers clearing at better-than-expected yields as banks bought securities at cheaper levels for their held-to-maturity books.

Forex
The Indian rupee ended marginally weaker on Tuesday as likely RBI intervention helped cushion pressure from elevated crude oil prices and surging global bond yields. The rupee closed at 95.68 per US dollar, compared with 95.6025 in the previous session.

Traders said the RBI likely intervened across market segments to support the currency, helping the rupee outperform several Asian peers, including the Philippine peso and Indonesian rupiah. Rising long-term borrowing costs in the US, Japan and Germany, amid renewed inflation concerns and fiscal pressures, remained a broader headwind for emerging-market currencies.

Crypto
The crypto market traded with a cautiously positive bias on Tuesday, with total market capitalisation rising around 2.6% to $2.28 trillion. Bitcoin gained momentum after breaking above its 50-day exponential moving average, trading at around $64,269 and holding above the key $64,000 level. The move was supported by signs of retail capitulation and a decline in exchange-held supply, which can indicate reduced near-term selling pressure.

Ethereum remained subdued at around $1,905 as broader macroeconomic risks capped gains. Crude oil prices above $91 per barrel amid heightened tensions in West Asia pushed the US 30-year Treasury yield to multi-decade highs, reviving inflation concerns and weighing on risk appetite. Investors also remained cautious ahead of the release of the FOMC meeting minutes.

US Stock Futures
US stock futures fell on Tuesday as persistent US-Iran tensions and rising Treasury yields weighed on investor sentiment. Dow Jones futures traded 73 points lower, while S&P 500 and Nasdaq-100 futures declined 0.32% and 0.59%, respectively.

The weakness followed a weak session on Wall Street as Brent crude rose more than 2% amid uncertainty over the expiry of the US-Iran ceasefire and stalled negotiations. Higher oil prices revived inflation concerns and pushed Treasury yields higher, adding pressure to equities.

US Treasury Notes
US Treasury notes yields rose sharply in pre-market trading on Tuesday, with the sell-off in longer-duration debt intensifying as elevated crude oil prices revived inflation concerns. The benchmark 10-year Treasury yield climbed to 4.736%, while the 30-year Treasury yield rose to 5.325%.

The move was driven by Brent crude remaining above $90 per barrel amid persistent tensions in West Asia, increasing concerns over energy-driven inflation. Growing fiscal concerns around continued US government debt issuance, alongside higher sovereign yields in Europe and Japan, also pushed investors to demand a higher term premium on longer-duration Treasuries, putting further pressure on bond prices.

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