Dalal Street opened in the red on Tuesday, August 18, extending a five-session losing streak. The market downturn was primarily driven by surging crude oil prices and the collapse of the US-Iran ceasefire, which kept investor sentiment under pressure.
As of 9:21 am, the Sensex was trading down 262.46 points, or 0.34 per cent, at 77,465.70, after opening at 77,418.97. The Nifty 50 was down 49.90 points, or 0.21 per cent, trading at 24,237.75 after opening at 24,223.85. Brent crude climbed above $91 a barrel, while WTI topped $85 following US President Donald Trump's decision not to extend the 60-day US-Iran ceasefire. Trump also issued threats to Oman, a key mediator in Strait of Hormuz negotiations, raising fresh fears of supply disruptions through major oil shipping lanes.
A senior Iranian official confirmed that Tehran had shifted its posture from defensive to fully offensive. Consequently, the 10-year US Treasury yield rose to 4.73 per cent and the 30-year yield reached 5.31 per cent, its highest level since mid-2007, creating headwinds for foreign institutional inflows into emerging markets.
Foreign Institutional Investors (FIIs) remained net sellers on Monday, offloading equities worth ₹2,535 crore. In contrast, Domestic Institutional Investors (DIIs) extended their buying streak to a fifth straight session, pumping in ₹5,100 crore to provide crucial downside support.
Among early Nifty 50 movers, Zomato parent Eternal led the gainers with a 0.69 per cent rise to ₹320.20, followed by ONGC up 0.68 per cent to ₹240.10, Grasim Industries up 0.66 per cent to ₹3,272, Bajaj Auto up 0.63 per cent to ₹11,736, and Nestlé India edging up 0.61 per cent to ₹1,478.90. On the losing side, Infosys was the worst performer, falling 1.47 per cent to ₹1,123.10. Bharti Airtel dropped 1.21 per cent, Jio Financial Services slid 1.14 per cent, Asian Paints fell 1.13 per cent, and IndiGo declined 1.12 per cent.
On the macroeconomic front, India's merchandise trade deficit widened to $32 billion in July 2026, with the Q1FY27 deficit reaching $86.6 billion. Headline CPI rose to a 19-month high of 4.5 per cent in July, and the rupee weakened 17 paise on Monday to close at 95.60 per dollar. Gold held above $4,400 per ounce.
"The ongoing market correction highlights how deeply global geopolitical events and energy prices impact domestic equities. While rising crude prices and surging US bond yields put pressure on foreign inflows, the consistent buying support from domestic institutional investors acts as a crucial cushion. For long-term participants, periods of heightened volatility driven by external macro factors call for disciplined capital allocation rather than reactive decision-making." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
