BY Our Business Correspondent
Indian equity markets remained under pressure on Tuesday, with benchmark indices extending their recent losing streaks as renewed geopolitical tensions between the United States and Iran triggered a sharp rise in crude oil prices and heightened concerns over global inflation.
The Nifty 50 declined for the sixth consecutive trading session, while the Sensex fell for the third straight session. Investors remained cautious amid weak global market signals, sustained foreign institutional selling, elevated US Treasury yields and continued depreciation of the Indian rupee.
Brent crude rose above the psychologically important $91-a-barrel mark, adding to concerns that a prolonged escalation in tensions in the Middle East could increase India’s import bill and put additional pressure on inflation, the current account and the rupee.
The Nifty remained volatile throughout the session ahead of the weekly derivatives expiry and eventually closed below the 24,200 mark. Selling was particularly visible in information technology stocks, while pharmaceutical, automobile and oil and gas counters managed to buck the broader trend.
The S&P BSE Sensex ended at 77,235.46, down 492.70 points, or 0.63%. The Nifty 50 settled at 24,154.90, declining 132.75 points, or 0.55%.
The latest decline means the Sensex has lost 1.08% over three consecutive sessions, while the Nifty has fallen 1.74% across six straight sessions, highlighting the deterioration in near-term market sentiment.
IT Stocks Lead Decline
Technology stocks were among the major laggards during Tuesday’s session. Infosys fell 2.18%, making it one of the biggest drags on the Nifty. Bharti Airtel declined 1.78%, while HDFC Bank slipped 0.82%.
The broader market, however, showed relative resilience compared with the benchmark indices. The BSE 150 MidCap Index declined 0.35%, while the BSE 250 SmallCap Index gained 0.19%.
Market breadth remained negative. On the BSE, 1,930 shares advanced against 2,384 declines, while 233 stocks finished unchanged.
The divergence between frontline indices and parts of the broader market suggests that selling remained concentrated in large-cap counters, although the overall risk appetite remained subdued.
Crude Oil Becomes Key Market Risk
Crude oil emerged as one of the biggest concerns for investors. Brent crude for October 2026 delivery rose 18 cents, or 0.20%, to $91.45 a barrel.
For India, which remains heavily dependent on imported crude oil, a sustained rise in international oil prices could have implications for inflation, the fiscal position, corporate margins and the country’s trade balance.
Higher crude prices can also increase transportation and logistics costs and raise input expenses for several industries. If elevated oil prices persist, investors could increasingly focus on companies that are vulnerable to higher energy costs, while oil producers and selected energy companies may receive greater attention.
Rupee Weakness Adds to Concerns
The Indian rupee also weakened against the US dollar. The partially convertible rupee was quoted around 95.6500 per dollar, compared with its previous close of 95.4200.
A weaker rupee can amplify the impact of higher crude prices because India pays for most of its oil imports in US dollars. Any sustained combination of elevated oil prices and currency depreciation could therefore increase pressure on domestic inflation and corporate costs.
The movement in the domestic bond market also reflected the cautious environment. The yield on India’s 10-year benchmark government security rose to 6.824%, compared with 6.804% in the previous session.
In commodities, MCX Gold futures for October 5, 2026 delivery declined 0.42% to Rs 1,52,282.
Meanwhile, the US Dollar Index was largely unchanged at 99.63, while the US 10-year Treasury yield increased to 4.736%.
Global Markets Under Pressure
The weakness in Indian equities mirrored a broader risk-off mood across international markets.
Most European equity benchmarks extended their decline on Tuesday, with regional indices falling to around two-week lows as renewed Middle East tensions unsettled investors.
Asian markets ended mixed amid uncertainty surrounding the US-Iran ceasefire situation. Concerns that the breakdown of negotiations could result in another spike in crude prices weighed on sentiment and revived fears of a fresh wave of global inflation.
Higher oil prices also contributed to a rise in longer-dated US Treasury yields, adding another layer of pressure on global equity valuations.
US President Donald Trump ruled out extending the 60-day agreement with Iran and threatened military action against Oman, while negotiations between Washington and Tehran remained stalled. The developments prompted investors to reassess geopolitical and inflation risks.
US Markets End Lower; Fed Minutes in Focus
Wall Street also closed lower overnight. The Dow Jones Industrial Average declined 0.51%, the S&P 500 fell 0.52%, and the Nasdaq Composite lost 0.32%.
Investors are now closely watching the minutes of the US Federal Reserve’s July meeting, scheduled for release on Wednesday, for indications about the future direction of US interest rates.
At its July 28-29 meeting, the Federal Reserve kept its benchmark interest rate unchanged at 3.50%-3.75%. The decision, however, was not unanimous, with three policymakers dissenting in favour of a rate increase.
The Fed minutes could provide additional clues about the policymakers’ assessment of inflation, economic growth and the appropriate path for interest rates. Higher US rates and Treasury yields can put pressure on emerging-market equities by making US assets relatively more attractive and increasing the cost of capital globally.
China’s Economic Momentum Weakens
Investors also received disappointing economic signals from China, the world’s second-largest economy.
Chinese economic activity weakened in July, with consumer spending, investment and industrial output losing momentum.
Retail sales grew only 0.6% year-on-year in July, compared with 1% growth in June. Urban fixed-asset investment declined 6.7% during the first seven months of the year, compared with a 5.7% decline in the first half.
Industrial output growth also slowed to 4.5% from 5.3% in June. Meanwhile, China’s urban unemployment rate increased to 5.2% from 5%.
The softer Chinese data added to concerns about the global growth outlook at a time when higher energy prices could simultaneously increase inflationary pressure.
Milky Mist Dairy Food Makes Strong Market Debut
The primary market provided a brighter spot, with Milky Mist Dairy Food making a strong debut on the BSE.
The stock ended its first trading session at Rs 181.45, representing a 29.61% premium over its issue price of Rs 140. It opened at Rs 165, a premium of 17.86%, and traded in the range of Rs 165 to Rs 181.45 during the session.
More than 69.28 lakh shares changed hands on the BSE.
Sigma Advanced Systems Hits Upper Circuit
Among individual stocks, Sigma Advanced Systems gained 5% and hit the upper circuit after the company announced that it had received orders worth approximately Rs 155 crore from the Government of India for its Indrajaal Ranger anti-drone patrol vehicle.
The order announcement triggered buying interest as investors focused on the company’s exposure to the country’s expanding defence and counter-drone technology ecosystem.
Paytm, Nelco Among Stocks in Focus
One 97 Communications, the parent company of Paytm, declined 2.15% following a large block transaction during early trade.
The movement came after the company disclosed that Resilient Asset Management B.V., an entity associated with Paytm founder Vijay Shekhar Sharma, had proposed selling up to 4.98% of its stake through a block market transaction. The proposed sale forms part of Resilient’s existing Optionally Convertible Debenture agreement with Antfin (Netherlands) Holding B.V.
Nelco was among the major losers, falling 12.62% after announcing a $20 million strategic investment in Lunar Holdco Inc., operating as Elveo Mobile.
The investment has been made through compulsorily convertible debentures carrying a 7% annual compounded return. Lunar is a US-based pre-revenue satellite communications company developing a next-generation non-geostationary satellite orbit network for direct-to-device, Internet of Things and mobile satellite connectivity.
Investor concerns appeared to centre on Nelco committing a substantial amount to a pre-revenue company, while the eventual equity stake that Nelco could receive is not currently determinable. Nelco also clarified that the investment does not give it control over Lunar.
Other Stocks in Spotlight
DCX Systems gained 3.19% after the company and its wholly owned subsidiary Raneal Advanced Systems received purchase orders worth a combined Rs 18.28 crore.
Netweb Technologies India advanced 2.16% after opening its qualified institutional placement issue and fixing the floor price at Rs 4,885.90 per equity share.
KPI Green Energy rose 1.95% after announcing the commissioning of 130 MW AC/195 MW DC of solar capacity under its 370 MW AC/677 MW DC wind-solar hybrid power project in Bharuch, Gujarat.
Highway Infrastructure climbed 4.03% after receiving a Letter of Acceptance worth Rs 80.16 crore from the National Highways Authority of India for operations at Palayam Fee Plaza in Tamil Nadu.
SPR Auto Technologies gained 1.43% after launching its QIP and fixing the floor price at Rs 4,438.20 per share.
Goldiam International declined 3.31% despite announcing export orders worth Rs 50 crore from international clients based in the US.
Ceigall India fell 2.50% after it and Sushee Infra Mining received four Letters of Acceptance from the Ministry of Road Transport and Highways for EPC construction of 204 km of intermediate-lane roads on NH-913 in Arunachal Pradesh. The combined bid value of the four projects stood at Rs 2,149.62 crore.
Protean eGov Technologies edged up 0.49% after receiving a Rs 5.99 crore work order from the Government of Arunachal Pradesh for the design, development, implementation and maintenance of the Arun Parivar Patra State Family Registry Platform.
IPO Activity Remains Robust
Activity in the primary market remained strong, although subscription levels varied considerably among issues.
Sunshine Pictures received bids for 2,34,97,633 shares against 54,86,051 shares on offer, translating into a subscription of 4.28 times on the first day. The IPO opened on August 18 and closes on August 20, with a price band of Rs 342-360 per share.
Shankesh Jewellers received bids for 98,12,320 shares against 2,76,37,400 shares on offer, representing a subscription level of 0.36 times. The issue carries a price band of Rs 88-93 and closes on August 20.
Horizon Industrial Parks, which opened on August 17, received bids for 5,93,40,250 shares against 25,13,56,273 shares on offer. The issue was subscribed 0.24 times and will close on August 19. Its price band has been fixed at Rs 57-60 per share.
Meanwhile, Lalithaa Jewellery Mart continued to attract stronger investor interest. The issue received bids for 19,18,08,000 shares against 6,27,61,403 shares available, translating into a subscription of 3.06 times. The issue, which opened on August 17, closes on August 19 and has a price band of Rs 190-201 per share.
Outlook: Crude, Geopolitics and Global Rates to Drive Sentiment
Going forward, investors are likely to remain focused on developments in the US-Iran situation, crude oil prices, foreign fund flows and global bond yields.
The combination of oil above $91 a barrel, a weaker rupee and elevated US Treasury yields presents a challenging backdrop for Indian equities. At the same time, domestic investors’ participation, resilience in selected sectors and continued activity in the primary market could provide some support.
For the near term, market participants are expected to closely monitor the weekly derivatives expiry, global central-bank signals and the Federal Reserve minutes. Any easing of geopolitical tensions and moderation in crude prices could provide relief to equities, while further escalation could intensify volatility.
With the Nifty already declining for six consecutive sessions, investors are likely to remain cautious and selective, particularly in large-cap stocks that have borne the brunt of recent selling. The coming sessions will therefore be crucial in determining whether the market can stabilise or whether the ongoing correction has further room to run.