Last Updated on August 25, 2026 9:48 pm by INDIAN AWAAZ
Benchmarks recover from early losses; Iran sanctions, crude prices, monthly expiry and global cues keep volatility elevated
BY Our Business Correspondent
Indian equity benchmarks staged a smart recovery on Tuesday, overcoming early weakness to close higher as investors returned to beaten-down stocks amid easing crude oil prices and somewhat softer concerns over an immediate disruption to global energy supplies.
The S&P BSE Sensex gained 286.98 points, or 0.37 per cent, to settle at 77,656.09, while the Nifty 50 advanced 115.50 points, or 0.48 per cent, to 24,334.55. The recovery came after a volatile session in which the Nifty slipped to an intraday low of 24,115.45 before reclaiming the psychologically important 24,300 mark.
Market sentiment remained closely linked to geopolitical developments, particularly the latest US sanctions targeting Iran and their potential implications for crude oil supplies. The decline in oil prices provided some relief to oil-importing economies such as India, helping investors look beyond the initial risk-off mood.
The United States announced a fresh sanctions campaign against Iran on August 25, targeting nearly 60 individuals, entities and vessels connected with Iranian oil, shipping, nuclear, missile and cyber networks. Washington also warned of secondary sanctions against businesses and countries continuing certain dealings with Tehran.
However, the market’s reaction suggested that investors were less concerned about an immediate and severe disruption to global oil flows. Softer crude prices helped reduce some of the inflationary and external-sector risks associated with a prolonged geopolitical escalation.
IT, healthcare and PSU banks lead recovery
The rebound in domestic equities was supported by gains across select heavyweight and defensive sectors.
Infosys rose 1.24 per cent, while Reliance Industries gained 0.55 per cent and ICICI Bank advanced 0.54 per cent, providing meaningful support to the Nifty. Healthcare, PSU banks and information technology stocks ended higher, whereas private-sector banks and metal stocks remained under pressure.
The sectoral divergence reflected a market still characterised by selective buying rather than broad-based conviction. Investors appeared willing to accumulate stocks that had undergone recent declines, but remained cautious about sectors vulnerable to global commodity prices, interest-rate expectations and geopolitical uncertainty.
The broader market also delivered a mixed performance. The BSE 150 MidCap Index gained 0.37 per cent, while the BSE 250 SmallCap Index declined 0.17 per cent.
Market breadth remained weak despite the headline gains. On the BSE, 2,007 shares advanced, while 2,330 declined and 196 remained unchanged. The negative breadth indicates that the benchmark recovery was driven disproportionately by selected large-cap stocks rather than by a broad participation across the market.
Volatility rises ahead of derivatives expiry
Tuesday’s trading was particularly volatile as market participants adjusted positions ahead of the monthly derivatives expiry.
The session also marked the first monthly Nifty 50 expiry under the new closing-auction framework, adding another layer of uncertainty to late-session trading. Such changes can result in sharper movements around the close as institutional and derivatives participants rebalance positions and manage open contracts.
For investors, the key takeaway from Tuesday’s session was therefore not simply the 0.48 per cent gain in the Nifty but the index’s ability to recover from below 24,150 and close above 24,300.
The 24,300 zone could remain an important near-term reference point, while the day’s low around 24,115 may act as a marker for immediate downside risk. A sustained move above the recent trading range could improve sentiment, but weak market breadth suggests that traders are still looking for stronger confirmation before turning decisively bullish.
Crude oil becomes the biggest relief factor
Oil prices remained one of the most important variables for Indian markets.
Brent crude for October 2026 settlement fell $2.73, or 2.96 per cent, to $89.44 a barrel. The decline followed a 2.4 per cent fall in Brent on Monday, when it settled at $92.17 a barrel.
For India, a sustained decline in crude prices is generally positive because the country remains heavily dependent on imported energy. Lower crude prices can ease pressure on the import bill, current account, inflation expectations and corporate input costs.
The oil market’s response to the latest Iran sanctions has therefore been closely watched. Reuters reported that while the US expanded sanctions against Iranian-linked networks, the measures fell short of some of the more aggressive actions investors had feared. Oil prices remained soft as markets assessed the likelihood of an immediate supply disruption.
The direction of crude will remain crucial for Indian equities because any renewed surge could quickly revive concerns about inflation, the rupee and corporate margins.
Rupee strengthens, bond yields ease
The foreign exchange market also provided a modestly positive signal.
The rupee was hovering around 95.4350 against the US dollar, compared with Monday’s close of 95.7000. The marginal appreciation came alongside softer oil prices and a calmer tone in global risk assets.
Lower crude prices can be supportive for the rupee because they reduce the domestic demand for dollars to finance energy imports. However, the currency remains vulnerable to movements in the US dollar, foreign portfolio flows, global bond yields and geopolitical developments.
In the bond market, the yield on India’s 10-year benchmark government security eased to 6.854 per cent from 6.872 per cent, a decline of 0.26 per cent. The movement suggested some improvement in demand for domestic fixed-income assets.
Gold prices, meanwhile, remained relatively steady. MCX Gold futures for October 5, 2026 delivery declined 0.18 per cent to ₹1,62,936.
The US Dollar Index was marginally higher at 98.94, while the US 10-year Treasury yield eased to around 4.667 per cent.
The direction of US Treasury yields remains particularly important for emerging markets. Higher US yields can encourage global investors to shift capital towards dollar-denominated assets, putting pressure on emerging-market currencies and equities.
Global markets remain cautious
Global markets continued to send mixed signals.
US stock futures were indicating a stronger opening on Tuesday as investors interpreted the latest Iran sanctions as less disruptive to the global economy than initially feared. European shares also advanced, with defence stocks among the gainers.
Asian markets, however, ended mixed as investors adopted a cautious stance ahead of several major global events scheduled for later in the week.
Wall Street had closed mixed on Monday. The Dow Jones Industrial Average rose 0.26 per cent to 53,417.16, while the S&P 500 declined 0.28 per cent to 7,652.86 and the Nasdaq Composite fell 0.76 per cent to 25,980.19.
Technology stocks remained under pressure, with Nvidia falling 2.9 per cent. Micron Technology and Broadcom also declined, weighing on the technology-heavy Nasdaq.
The technology sector is now approaching an important test.
Nvidia earnings in focus
Investors worldwide are preparing for Nvidia’s second-quarter fiscal 2027 results, scheduled after the US market close on Wednesday, August 26.
Nvidia has become one of the most closely watched companies in global markets because its earnings provide an important indication of the strength and sustainability of the artificial-intelligence investment cycle.
Market participants will be looking beyond the headline earnings number. Revenue guidance, data-centre demand, margins and management commentary on AI infrastructure spending could have implications for technology stocks globally, including Indian IT and technology-linked counters.
Recent market analysis has highlighted the importance of Nvidia’s guidance and the sustainability of AI infrastructure spending as investors question whether the extraordinary pace of technology investment can continue.
US inflation and Jackson Hole next
Another major event for global markets will be the release of the US July Personal Consumption Expenditures price index on Wednesday.
The PCE inflation measure is closely monitored by the Federal Reserve and could influence expectations surrounding US monetary policy. A softer inflation reading could reinforce expectations of an easier policy stance, while a stronger-than-expected reading could keep Treasury yields elevated.
The Jackson Hole Economic Policy Symposium, scheduled for August 27-29, will provide another major test for markets. Federal Reserve Chair Kevin Warsh is scheduled to deliver his keynote speech on Friday, August 28. His remarks will be closely scrutinised for signals regarding inflation, interest rates and the central bank’s policy outlook.
Together, Nvidia’s earnings, US inflation data and the Jackson Hole speech create an unusually important cluster of events for global investors.
New listings deliver modest gains
The primary market also remained active on Tuesday.
Shankesh Jewellers ended at ₹95.03 on the BSE, a 2.18 per cent premium over its issue price of ₹93. The stock debuted at ₹102.20, representing a 9.89 per cent premium, before touching an intraday high of ₹110.99 and a low of ₹94. More than 61.61 lakh shares changed hands on the BSE.
Sunshine Pictures ended at ₹368.90, a 2.47 per cent premium to its ₹360 issue price. The stock listed at ₹394, a 9.44 per cent premium, and moved between ₹395 and ₹365 during the session. More than 15.40 lakh shares were traded on the BSE.
The relatively modest closing gains compared with the initial listing premiums underline the volatility that has characterised the primary market.
Stocks in spotlight
IIFL Finance fell 4.74 per cent after its material subsidiary, IIFL Home Finance, received an assessment order involving a ₹963.39 crore tax demand, including surcharge and cess. The company has said it has substantial factual and legal grounds to contest the additions and is pursuing appellate and other remedies. It does not currently expect the matter to have a material impact on its financial position or operations.
Entero Healthcare Solutions gained 6.39 per cent after 3P Investment Managers, founded and managed by veteran fund manager Prashant Jain, acquired a 2.5 per cent stake through bulk deals on August 24.
Netweb Technologies India declined 2.92 per cent after completing its qualified institutional placement, raising approximately ₹1,200 crore from domestic and global institutional investors.
Larsen & Toubro fell 0.71 per cent despite announcing a major order for three battery energy storage system projects in the Middle East. The order is classified by L&T as a “major” contract, with a value between ₹5,000 crore and ₹10,000 crore. The projects are expected to have combined storage capacity of 6 GWh.
Sigma Advanced Systems hit a 5 per cent upper circuit after securing an additional long-term agreement worth nearly £125 million, or approximately ₹1,600 crore, from Rolls-Royce.
Puravankara gained 1.73 per cent after entering into a joint development agreement for a 7.83-acre land parcel in southeast Bengaluru, with an estimated gross development value of ₹1,100 crore.
Afcons Infrastructure rose 2.42 per cent after receiving an arbitral award of ₹335.50 crore in its favour in proceedings against the Uttar Pradesh Expressways Industrial Development Authority.
Great Eastern Shipping gained 0.68 per cent after announcing that its board would meet on August 27 to consider a proposal for a buyback of fully paid-up equity shares.
IPO market remains exceptionally active
The primary market continued to attract strong investor interest, although subscription levels varied sharply across issues.
Annu Projects, which opened on August 25, received bids for 60.01 lakh shares against 1.77 crore shares on offer, translating into subscription of 0.34 times at 16:54 IST. The issue, priced at ₹94-99 a share, closes on August 28.
In contrast, Augmont Enterprises witnessed extraordinary demand on the final day of bidding. The issue received bids for 81.60 crore shares against 77.16 lakh shares on offer, taking subscription to 105.76 times. The ₹750-788 issue opened on August 21. The strong response is consistent with the broader surge in India’s primary-market activity this week.
Skyways Air Services was subscribed 2.46 times, with 7.26 crore shares bid for against 2.96 crore shares on offer. Its ₹131-138 issue closes on August 27.
Symbiotec Pharmalab was subscribed 1.85 times, receiving bids for 2.43 crore shares against 1.31 crore shares on offer. The price band is ₹938-988 and the issue closes on August 27.
Hy-Tech Engineers attracted particularly strong demand, with bids for 35.04 crore shares against 1.81 crore shares on offer, resulting in subscription of 19.31 times. The issue, priced at ₹50-53 a share, closes on August 27.
Outlook: recovery, but not yet a decisive trend reversal
Tuesday’s market performance offered some relief after recent weakness, but investors would be premature to interpret the gain as a definitive change in trend.
The recovery above 24,300 is encouraging, but negative market breadth shows that participation remains uneven. The next few sessions could be dominated by global developments rather than domestic fundamentals, particularly crude oil movements, US sanctions on Iran, Nvidia’s earnings, US inflation data and the Federal Reserve’s Jackson Hole communication.
For India, lower crude prices remain an important positive. A stable or stronger rupee and easing bond yields could further support sentiment. At the same time, any sharp rebound in oil prices or renewed geopolitical escalation could quickly reverse the improvement.
The market is therefore entering a data-heavy and event-driven phase. For the near term, investors are likely to favour stock-specific opportunities while remaining cautious on aggressive positioning.
Tuesday’s rebound demonstrates that buying interest remains alive beneath the surface. The bigger question is whether global macroeconomic and geopolitical conditions will allow that buying to develop into a sustained market recovery. With Nvidia, US inflation and Jackson Hole lined up within days, the answer may come sooner than expected.