Last Updated on August 26, 2026 10:23 pm by INDIAN AWAAZ
Our Business Correspondent
Domestic equity markets closed lower on Wednesday as investors booked profits after the recent recovery and adopted a cautious stance ahead of key US economic data and Nvidia’s quarterly earnings. Selling pressure was concentrated in information technology stocks and heavyweight Reliance Industries, offsetting gains in financial, private banking, cement and metal counters.
The benchmark Nifty 50 declined 126.80 points, or 0.52 per cent, to 24,207.75, while the S&P BSE Sensex fell 183.15 points, or 0.24 per cent, to 77,472.94. The Nifty had climbed to an intraday high of 24,378.60 but surrendered its gains as the session progressed, eventually settling below the psychologically important 24,250 mark. The Sensex also came under pressure in late trading.
The market’s weakness was driven less by broad-based risk aversion and more by sectoral rotation and profit-taking in select large-cap counters. The broader market remained relatively resilient, indicating that investor interest had not disappeared altogether. The BSE MidCap index gained 0.17 per cent, while the BSE SmallCap index rose 0.56 per cent.
Market breadth on the BSE was positive, with 2,375 stocks advancing against 1,944 declining, while 231 remained unchanged. The divergence between the headline indices and broader market underscores the selective nature of Wednesday’s selling.
The market was also influenced by a sharp decline in crude oil prices. Brent crude dropped below $86 a barrel as hopes increased that diplomatic efforts involving Iran and Oman could improve shipping conditions through the strategically important Strait of Hormuz. Lower oil prices are generally viewed positively for India because the country imports a large portion of its crude requirements, potentially easing pressure on the trade deficit, inflation and the rupee.
US Inflation Data Becomes Key Market Trigger
A major focus for global investors was the release of the US July Personal Consumption Expenditures price index, the inflation measure closely watched by the Federal Reserve.
The data, released later on Wednesday, showed that the headline PCE price index rose 3.7 per cent year-on-year in July, while the core PCE measure, excluding food and energy, increased 3.3 per cent. On a monthly basis, both headline and core PCE rose 0.2 per cent. Personal income increased 0.4 per cent, while personal consumption expenditures rose 0.2 per cent.
The inflation numbers remain significantly above the Federal Reserve’s 2 per cent target and are likely to reinforce expectations that US policymakers will proceed cautiously on interest rates. The release therefore added another layer of uncertainty for global equity markets, including India, where foreign portfolio flows remain sensitive to US bond yields and dollar movements.
Federal Reserve Chair Kevin Warsh is scheduled to address the Jackson Hole Economic Policy Symposium on Friday, August 28. His remarks will be closely watched for indications about the central bank’s approach to inflation and interest rates. Recent data have increased the importance of his communication with markets.
For Indian equities, the combination of elevated US inflation, US Treasury yields and uncertainty over the timing of future rate moves could continue to influence foreign institutional investor positioning.
IT Stocks Bear the Brunt
The Nifty IT index fell 1.47 per cent to 30,318.85, ending a two-session winning streak. Investors remained concerned about higher costs for Indian technology companies following the proposed increase in the fee for new US H-1B visa applications.
The proposed fee of about $103,265 for new H-1B applications has raised concerns among investors about the potential impact on Indian IT companies that depend significantly on skilled professionals working in the US. Industry body Nasscom has urged the US administration to reconsider the proposal.
The sector was also under pressure ahead of Nvidia’s earnings, which were due after the US market close. Nvidia’s results have assumed greater significance because they are increasingly viewed as an indicator of the sustainability of global spending on artificial intelligence infrastructure.
Among the major IT counters, Infosys declined 2.10 per cent, Tech Mahindra 1.81 per cent, Wipro 1.52 per cent, LTIMindtree 1.50 per cent, HCL Technologies 1.31 per cent and Mphasis 1.31 per cent. TCS fell 1.14 per cent, Persistent Systems 1.14 per cent and Coforge 0.68 per cent.
The weakness suggests that investors are becoming more selective about the technology sector after its strong performance in recent years. Apart from visa-related costs, concerns about AI-driven changes in traditional IT services and the possibility of pricing pressure are influencing valuations.
Reliance Industries Adds to Pressure
Heavyweight Reliance Industries declined 1.44 per cent, adding to the downward pressure on the benchmark indices.
The stock’s movement was particularly relevant because of its significant weight in the major indices. Weakness in large-cap index constituents can have an outsized impact on the Sensex and Nifty even when the broader market remains relatively stable.
In contrast, financial stocks and private-sector banks attracted buying interest. Cement and metal counters also advanced, helping limit the overall market decline.
This sectoral rotation indicates that investors continued to look for opportunities outside expensive technology names, particularly in segments that could benefit from domestic economic activity and lower commodity prices.
Crude Oil Decline Offers Relief
Crude oil prices provided an important positive signal for the Indian economy.
Brent crude for October 2026 delivery fell $2.24, or 2.57 per cent, to $85.03 a barrel. The decline came amid hopes of improved shipping safety through the Strait of Hormuz following diplomatic discussions involving Iran and Oman.
For India, sustained moderation in crude prices could provide relief on several fronts. Lower oil import costs can help contain inflationary pressures, improve the current account balance and reduce the pressure on government finances arising from fuel-related support measures. It can also improve the operating environment for oil-consuming industries such as aviation, chemicals, paints and transportation.
However, the oil market remains vulnerable to geopolitical developments. Any renewed disruption in the Gulf region could quickly reverse the recent decline.
Global Markets Remain Focused on Nvidia and US Rates
Global equity markets were mixed to positive on Wednesday. Most European shares advanced, remaining close to one-week highs as the decline in crude prices reduced concerns about inflation and economic growth.
Asian markets also largely ended higher as investors waited for Nvidia’s results and the US inflation data.
The global technology sector remains highly sensitive to Nvidia because of the company’s central role in supplying advanced chips used in artificial intelligence data centres. Strong results and guidance could reinforce expectations of sustained AI capital expenditure, while any indication of slower demand could trigger a reassessment of stretched technology valuations.
Wall Street had ended higher on Tuesday. The Nasdaq Composite gained 0.66 per cent, the S&P 500 rose 0.32 per cent and the Dow Jones Industrial Average advanced 0.30 per cent. Nvidia rose 2.19 per cent and AMD gained 4.91 per cent in anticipation of the earnings announcement.
The US market backdrop therefore remained relatively supportive, although the latest PCE data subsequently showed inflation continuing to run above the Fed’s target.
US-Canada Trade Tensions Intensify
Trade tensions between the US and Canada also remained an important global risk factor.
Canada has announced counter-tariffs ranging from 15 per cent to 50 per cent on US products covering about C$27.6 billion of imports, with the measures scheduled to take effect on September 8. Ottawa said the tariffs would match corresponding US rates and cover sectors including steel, dairy, appliances, agricultural equipment, pulp and paper and electronics.
The escalation adds to uncertainty surrounding global trade and supply chains at a time when investors are already assessing the inflationary consequences of tariffs.
For Indian markets, prolonged trade tensions could have both positive and negative implications. While Indian exporters may find opportunities in some markets, higher global input costs and weaker international demand could pose challenges for several sectors.
Dollar and Bond Yields
The US Dollar Index rose 0.11 per cent to 98.95, reflecting cautious positioning ahead of the inflation data.
The US 10-year Treasury yield was around 4.64 per cent, with global investors closely monitoring bond yields for clues about the direction of US monetary policy.
Higher US yields generally make dollar-denominated assets more attractive and can put pressure on emerging-market currencies and equities. Conversely, a sustained decline in yields could improve liquidity conditions and encourage flows into emerging markets such as India.
Gold prices also softened. MCX Gold futures for October 5, 2026 settlement declined 0.43 per cent to Rs 1,62,115, reflecting the mixed movement in global risk assets and the dollar.
Gaja Alternative Asset Makes Strong Debut
The primary market continued to remain active, with Gaja Alternative Asset Management making its stock-market debut on Wednesday.
The shares opened on the BSE at Rs 185.20, representing a premium of 15.75 per cent over the issue price of Rs 160. The stock subsequently gave up part of the initial gain and ended at around Rs 168.70, still 5.44 per cent above the issue price.
The company is India’s first listed pure-play alternative asset management business, making its debut significant for the country’s expanding alternative investment industry. Reuters reported that the company was valued at approximately Rs 24 billion at the close.
The strong listing despite a volatile secondary market highlights continued investor appetite for differentiated businesses and the broader strength of India’s primary market.
Groww Parent Under Pressure After Block Deal
Billionbrains Garage Ventures, the parent company of Groww, declined 3.24 per cent to Rs 196.44 after about 12.75 crore shares, representing nearly 2.1 per cent of the company’s equity, changed hands in a block deal worth approximately Rs 2,500 crore.
The transaction came a day after reports that Ribbit Capital planned to sell around 1.6 per cent of its stake for approximately Rs 1,914 crore at a floor price of Rs 195 per share.
The block transaction prompted investors to reassess near-term supply pressures in the stock, particularly following its strong market performance.
Order Wins Keep Select Stocks Firm
Several companies attracted attention on the back of fresh orders.
Advait Energy Transitions gained 3.71 per cent after receiving a turnkey contract worth Rs 134.62 crore from Madhya Pradesh Power Transmission Company.
MTAR Technologies rose 1.92 per cent after announcing orders worth Rs 126.7 crore for the supply of coolant channel assemblies for refurbishment of the RAPS-4 and MAPS-2 reactors.
Adani Energy Solutions declined 1.51 per cent despite securing a major transmission project to evacuate renewable energy generated in Karnataka to load centres in Maharashtra. The project is expected to involve capital expenditure of approximately Rs 4,700 crore and is also expected to support the development of the pumped-storage ecosystem in the Satara, Pune and Mumbai Metropolitan Region.
Fedbank Financial Services gained 0.29 per cent after its board approved an increase in aggregate borrowing limits to Rs 23,000 crore from Rs 18,000 crore. The company also approved a proposal to raise up to Rs 2,500 crore through debt instruments, including non-convertible debentures.
Subex slipped 0.39 per cent after announcing a three-year engagement with a leading African mobile operator for deployment of its HyperSense Fraud Management solutions.
Sai Parenterals rose 0.71 per cent after its subsidiary Noumed Pharmaceuticals renewed an over-the-counter medicines supply agreement with a major Australian pharmacy chain.
NBCC (India) declined 0.32 per cent after receiving a work order worth approximately Rs 121.74 crore from the Rajasthan Council of School Education.
IPO Activity Remains Strong
The primary market remained busy, with several issues attracting substantial investor interest.
Hy-Tech Engineers had received bids for 91.92 crore shares against 1.81 crore shares on offer as of 4:54 pm on August 25, translating into subscription of 50.66 times. The issue opened on August 24 and closes on August 27, with a price band of Rs 50-53 a share.
Annu Projects, in contrast, had received bids for 82.42 lakh shares against 1.77 crore shares on offer as of 4:54 pm on August 26. The issue was subscribed 0.47 times. It opened on August 25 and closes on August 28, with the price band fixed at Rs 94-99.
Skyways Air Services received bids for approximately 14.99 crore shares against 2.96 crore shares on offer, taking subscription to 5.07 times. The issue opened on August 24 and closes on August 27, with a price band of Rs 131-138.
Symbiotec Pharmalab received bids for nearly 6.95 crore shares against 1.31 crore shares on offer, translating into subscription of 5.29 times. The issue, which carries a price band of Rs 938-988, closes on August 27.
The varying subscription levels underline the increasingly selective nature of primary-market participation. While investors continue to demonstrate strong appetite for companies with attractive growth prospects, valuation, business visibility and sector outlook remain key determinants of demand.
Outlook
The Indian equity market is entering a data-heavy phase in which global factors are likely to remain as important as domestic corporate earnings.
The immediate focus is on the implications of the latest US PCE inflation figures, Nvidia’s earnings and Federal Reserve Chair Kevin Warsh’s upcoming Jackson Hole address. With headline US PCE inflation at 3.7 per cent and core PCE at 3.3 per cent in July, expectations of rapid monetary easing may remain constrained.
At the domestic level, lower crude prices offer a cushion, while continued strength in the broader market indicates that investor risk appetite has not disappeared. However, expensive technology stocks, foreign fund flows, currency movements and global bond yields could keep the benchmarks volatile.
For the Nifty, the 24,200-24,250 zone will remain important in the near term. A sustained recovery above recent highs could restore bullish momentum, while continued selling in IT and heavyweight stocks could keep the benchmark under pressure.
Wednesday’s session therefore reflected a market caught between supportive domestic factors—particularly lower crude prices and resilient broader participation—and global uncertainties surrounding US inflation, interest rates, trade tensions and the sustainability of the AI-led technology rally.
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