Markets opened on a cautious note Tuesday morning, with the Nifty 50 trading at 24,038.35, down 42.05 points, or 0.17 per cent, from its previous close of 24,080.40, which had itself fallen 95.25 points on Monday. The Sensex opened at 76,994.11 against a previous close of 76,957.27, and was trading at 76,876.53, down 80.74 points or 0.10 per cent, as a combination of elevated crude oil prices, rising global bond yields and renewed US-Iran military tensions weighed on sentiment.
Crude oil, global tensions weigh on sentiment
Brent crude crossed $91 per barrel in Asian trade after fresh US strikes on Iran were followed by Iranian missile attacks on American bases in Jordan. Competing claims over whether vessels had struck mines near the Strait of Hormuz kept energy markets on edge. “Crude, meanwhile, continues to spiral higher…the market is also focused on a tight product market, fresh strikes on Russian refineries have pushed refining margins to new highs,” noted Shrikant Chouhan, Head of Equity Research at Kotak Securities, adding that the US Strategic Petroleum Reserve was at its lowest since 1983.
ITC, Bharti Airtel lead gainers
Among the top gainers on the Nifty 50, ITC led with a 4.38 per cent rise to ₹266.70, followed by Bharti Airtel, up 2.75 per cent to ₹1,861.70. Adani Ports gained 2.73 per cent to ₹1,636.60, while Adani Enterprises rose 2.12 per cent to ₹2,919.80. TMPV added 2.19 per cent to close at ₹315.60.
On the losing side, Max Healthcare fell the most, dropping 3.48 per cent to ₹1,005.80. Nestle India declined 3.11 per cent to ₹1,449.90. IndiGo slipped 2.95 per cent to ₹5,079.50, TCS fell 2.72 per cent to ₹2,334.00, and Shriram Finance dropped 2.69 per cent to ₹1,080.00. Weakness in the IT and FMCG sectors reflected the broader global risk-off mood, with Media, Metals, Chemicals, and Cement also among the laggards on Monday.
Bank Nifty shows relative resilience
Bank Nifty, however, showed relative resilience, closing Monday at 58,024.95, up 528.65 points or 0.92 per cent, after recovering sharply from the 57,200 support zone. “Bank Nifty continues to show relatively stronger momentum above its key EMAs,” observed Sachin Gupta, VP of Technical Research at Choice Equity Broking, noting that the 58,700–58,800 band remained the key resistance for the index.
GDP growth offers domestic support
A key support for domestic markets came from India’s GDP data. The economy expanded 7.8 per cent in the April–June quarter of FY27, beating the RBI’s 7 per cent projection. Financial services grew 12.1 per cent, manufacturing expanded 9.2 per cent, and investment spending rose 11.9 per cent. “The Q1 GDP growth print at 7.8 per cent is reassuring and indicates that we are on track to achieve 7 per cent growth in FY27,” said Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments, though he cautioned that “the global headwinds from elevated crude and excessive US bond yields might impact the market negatively.”
Institutional flows remained a concern. Foreign institutional investors sold nearly ₹7,985 crore worth of equities on Monday, while domestic institutional investors bought ₹4,588 crore, providing some cushion. “Sustained DII support could help limit downside pressure if global cues remain weak,” Gupta added.
US Treasury yields add pressure
Global bond markets added further pressure. The US 10-year Treasury yield climbed to 4.78 per cent, near a 20-month high, after Federal Reserve Chair Warsh’s hawkish Jackson Hole speech pushed the probability of a September rate hike to nearly two-thirds. “The US 10-year bond yield at 4.77 per cent and 30-year yield at 5.24 per cent are negatives for equity markets,” Vijayakumar said, warning that “flight of capital to safe US bonds is inevitable in this context,” while maintaining that Nifty’s range of 23,000–25,000 would hold near-term.
Primary market activity remains strong
Primary markets, meanwhile, told a different story. August 2026 saw around 22 companies raise over ₹23,000 crore in combined fundraising, the highest monthly total in a year. “August simply gave institutional investors another window to get into quality businesses at reasonable valuations,” said CA Kresha Gupta, Director and Fund Manager at Steptrade Capital, noting that FPIs remained active in primary issuances even while selling in secondary markets.
Nifty 24,000 remains key support
Traders are watching the 24,000 level closely as a critical floor, with resistance pegged at 24,200–24,250. Today being a weekly Nifty expiry day, heavy options open interest around the 24,000–24,200 strikes is expected to keep the index range-bound through much of the session. The US non-farm payrolls report later this week remains the next major global trigger.