opened in the red on Tuesday, August 18, extending a five-session losing streak as surging crude oil prices and the collapse of the U.S.-Iran ceasefire kept investor sentiment under pressure.
The , which closed at 77,728.16 on Monday, opened at 77,418.97 and was trading at 77,465.70, down 262.46 points or 0.34 per cent, while the , which had ended at 24,287.65, opened at 24,223.85 and was trading at 24,237.75, down 49.90 points or 0.21 per cent, as of 9.21 am.
after U.S. President Donald Trump declined to extend the 60-day U.S.-Iran ceasefire, while WTI topped $85. Trump also threatened Oman, a key mediator in Strait of Hormuz negotiations, raising fresh fears of supply disruption through one of the world’s busiest oil shipping lanes.
A senior Iranian official confirmed Tehran had shifted its posture from defensive to “fully offensive.” The development sent the 10-year U.S. Treasury yield to 4.73 per cent and the 30-year yield to 5.31 per cent, its highest since mid-2007, adding further headwinds for foreign institutional inflows into emerging markets.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, flagged both triggers: …”Brent crude has again spiked above $91 on escalation of tensions between Iran and the U.S. The U.S. 10-year bond yield has increased to 4.73 per cent and this is negative for FII inflows which had turned positive in July and August so far.”… He added: …”Retail investors can use the dips in the market to slowly accumulate high quality stocks for the long-term. Heightened uncertainty will keep the market volatile.”…
On Monday, Foreign Institutional Investors were net sellers, offloading equities worth ₹2,535 crore. Domestic Institutional Investors, however, extended their buying streak to a fifth straight session, pumping in ₹5,100 crore, providing crucial support to prevent a steeper fall.
Among the Nifty 50’s top gainers in early trade, Zomato parent Eternal led with a 0.69 per cent rise to ₹320.20, followed by state-run oil producer ONGC, up 0.68 per cent to ₹240.10.
Diversified conglomerate Grasim Industries gained 0.66 per cent to ₹3,272, two-wheeler maker Bajaj Auto rose 0.63 per cent to ₹11,736, and FMCG major Nestlé India edged up 0.61 per cent to ₹1,478.90.
On the losing side, IT bellwether Infosys was the worst performer, falling 1.47 per cent to ₹1,123.10, reflecting broader weakness in the technology sector.
Telecom giant Bharti Airtel dropped 1.21 per cent to ₹1,945.40, financial services firm Jio Financial Services slid 1.14 per cent to ₹246.90, paints maker Asian Paints fell 1.13 per cent to ₹2,657.20, and aviation major IndiGo declined 1.12 per cent to ₹5,216.50.
The sectoral picture mirrored Monday’s trend, where the IT index shed nearly 2 per cent while Realty and Metal indices gained 1.5 per cent and 1.2 per cent respectively.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted the technical damage: …”After a long time, Nifty closed below the 20-day SMA, which is negative.”… He placed immediate resistance at 24,400 for the Nifty and 78,000 for the Sensex, with support at 24,200 and 77,500 respectively.
Globally, Wall Street’s major indices closed lower on Monday, with the Dow Jones falling 272 points, the S&P 500 dropping 0.5 per cent, and the Nasdaq declining 0.3 per cent.
One bright spot was the Philadelphia Semiconductor Index, which entered bull market territory, closing 20 per cent above its late-July low in just 21 sessions.
Asian markets were mixed in early trade, with South Korea’s Kospi rallying over 3 per cent on semiconductor strength while Japan’s Nikkei edged lower. Japan’s 10-year government bond yield hit its highest level since 1996.
Hitesh Tailor, Technical Research Analyst at Choice Broking, summed up the near-term setup: …”The key overnight trigger is the renewed rise in crude oil, with Brent moving above $90 as the U.S.–Iran ceasefire expired and prospects for reopening the Strait of Hormuz weakened. Strong domestic institutional buying could provide some downside cushion, keeping the session volatile and stock-specific.”…
On the macro 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, with WPI remaining above 9 per cent, driven by elevated crude and mineral oil prices. The rupee weakened 17 paise on Monday to close at 95.60 per dollar. Gold held above $4,400 per ounce, supported by dollar weakness and falling real yields.
Gaurav Udani, Founder of Thincredblu Securities, flagged caution ahead of the weekly derivatives expiry: …”With weekly expiry today, traders should be prepared for higher volatility and sharp intraday swings, particularly around key support and resistance levels.”… He added: …”After the recent weakness, traders need to remain cautious and avoid chasing moves at the open.”