Sensex Falls 455 Points, Nifty Dips as Crude Prices and Geopolitical Tensions Weigh on Friday
Markets reacted to rising Brent crude and geopolitical uncertainty on Friday, while global cues remained mixed heading into the new week.
The story
Indian equity benchmarks closed lower on Friday, August 7, with the Sensex declining 455.59 points (0.58%) to settle at 78,499.17. The Nifty 50 also saw a dip, falling 65.35 points (0.27%) to close at 24,570.65.
This downturn was largely influenced by a spike in Brent crude oil prices, which rose above $84 per barrel amid ongoing uncertainty surrounding the reopening of the Strait of Hormuz. While domestic markets experienced a cautious mood, global markets presented a mixed picture.
Asian markets traded higher on Monday, August 10, following gains on Wall Street on Friday, which were spurred by weaker-than-expected US jobs data that eased concerns about near-term Federal Reserve rate hikes. Foreign Institutional Investors (FIIs) were net buyers of Indian equities worth ₹480.24 crore on Friday, August 7, and Domestic Institutional Investors (DIIs) also bought a net ₹235.56 crore.
FIIs collectively invested ₹12,921 crore in Indian equities during the first week of August. On Monday, August 10, the market opened flat to marginally higher, with early gains in IT stocks, such as Infosys and Tech Mahindra, helping to limit the downside.
The tape
| Instrument | Last | Change |
|---|---|---|
| Nifty 50 | 24,606 | +35.35 (+0.14%) |
| Sensex | 78,540.50 | +41.33 (+0.05%) |
| USD/INR | 95.20 | -0.03% |
| India VIX | 12.81 | +5.34% |
Flows & data
| Item | Reading | Read |
|---|---|---|
| FII Net Flows | ₹480.24 crore (August 7, 2026) | Foreign Institutional Investors were net buyers in the cash segment. |
| DII Net Flows | ₹235.56 crore (August 7, 2026) | Domestic Institutional Investors were net buyers in the cash segment. |
| FII Inflows (First week of August) | ₹12,921 crore | Foreign Portfolio Investors continued their buying trend in Indian equities. |
IPOs & the primary market
The primary market remains active, with several IPOs opening this week. LEAP India and Technocraft Ventures IPOs, with issue sizes of ₹2,480 crores and undisclosed respectively, opened on August 7 and will close on August 11.
Molbio Diagnostics and Dhoot Transmission IPOs are opening on August 10 and will close on August 12. Looking ahead, Milky Mist Dairy Food IPO is set to open on August 11, while Shiprocket and Behari Lal Engineering IPOs are scheduled to open on August 12. August 2026 is seeing a robust pipeline of 19 IPOs, including 7 mainboard and 12 SME issues, covering sectors such as healthcare, renewable energy, and automotive.
Valuation watch — India & global
Globally, the S&P 500 index reached a record close of 7,757.64 on Friday, August 7, following softer US jobs data that tempered expectations for Federal Reserve rate hikes. This performance, alongside a relatively subdued India VIX at 12.15 on Monday morning before rising to 12.81, suggests that markets are absorbing geopolitical noise without significant volatility.
The recent FII inflows into India, totaling ₹12,921 crore in the first week of August, are partly driven by expectations of US rate cuts and a stable rupee. While India's domestic fundamentals remain supportive, the sustained inflows and record global benchmarks highlight a continued focus on growth assets amidst a backdrop of easing monetary policy concerns.
Monsoon watch
India's cumulative monsoon rainfall deficit reduced by one percentage point, from 12% on August 2 to 11% on August 9, despite recent rains in Delhi, Haryana, and east Rajasthan. However, several agrarian states, including Bihar, Jharkhand, Uttar Pradesh, Punjab, and Andhra Pradesh, continue to experience deficient rainfall.
Kharif sowing has largely concluded in approximately 88% of the total sown area, though paddy acreage remains 4% below last year's levels. The India Meteorological Department (IMD) predicts a new low-pressure system to form around August 13 over the North Bay of Bengal, which is expected to sustain the active monsoon phase until the third week of the month. The standing kharif crop will require additional rainfall in the latter half of August and early September for optimal development.
What we'll be watching
- Final leg of Q1 FY27 earnings season continues with several companies announcing results (August 10).
- MSCI quarterly index review on August 12, potentially impacting passive fund flows.
- IMD expects a new low-pressure system to form around August 13, influencing monsoon activity.
- Monthly derivatives expiry on August 25, which could lead to increased market volatility.
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