Sensex, Nifty Extend Losing Streak to Six Sessions as Brent Crude Tops $90 Amid Geopolitical Tensions
Persistent global bond yield increases and ongoing geopolitical concerns in the Middle East are expected to keep investor sentiment cautious.
The story
Indian equity benchmarks continued their downward trajectory, extending losses for a sixth consecutive session on Tuesday, August 18. The Sensex closed 492.70 points, or 0.63%, lower at 77,235.46, while the Nifty 50 declined 132.75 points, or 0.55%, to settle at 24,154.90. This weakness carried into Wednesday's opening, with the Nifty 50 slipping further to around 24,072.25 and the Sensex to 76,990.55 in early trade.
The market downturn was largely influenced by elevated Brent crude oil prices, which moved towards $92 per barrel, coupled with rising global bond yields and renewed geopolitical tensions between the US and Iran. Weak cues from Asian markets, following a sell-off in US artificial intelligence shares, also contributed to the cautious sentiment.
Despite the broader market decline, Foreign Institutional Investors (FIIs) were net buyers, purchasing equities worth ₹1,651.53 crore on Tuesday. Domestic Institutional Investors (DIIs) also showed buying interest, with net inflows of ₹2,579.31 crore. Sectorally, IT stocks were among the biggest laggards on Tuesday, though some IT names bucked the trend in Wednesday's early session.
The tape
| Instrument | Last | Change |
|---|---|---|
| Nifty 50 | 24,154.90 | -132.75 (-0.55%) |
| Sensex | 77,235.46 | -492.70 (-0.63%) |
| USD/INR | 95.73 | +0.01 |
| India VIX | 11.45 | +0.06 (0.55%) |
Flows & data
| Item | Reading | Read |
|---|---|---|
| FII Net Flows | +₹1,651.53 crore (August 18, 2026) | Foreign Institutional Investors were net buyers in the cash segment. |
| DII Net Flows | +₹2,579.31 crore (August 18, 2026) | Domestic Institutional Investors were net buyers in the cash segment. |
IPOs & the primary market
The primary market saw several listings and new openings. Shiprocket Limited made a strong debut on Wednesday, listing at ₹131 on the NSE, a 35.05% premium over its issue price of ₹97. Behari Lal Engineering also listed on Wednesday, with grey market premium suggesting a potential listing gain of around 47%. Other listings today included Pramodini Medicare and Q&T Foods.
New IPOs opening for subscription on Wednesday, August 19, include Gaja Alternative Asset Management, which aims to raise ₹550 crore, along with SME issues Dhanwel Hybrid Seeds and Mopshop Distribution. Horizon Industrial Parks and Lalithaa Jewellery Mart IPOs closed for subscription on Wednesday.
Valuation watch — India & global
Global markets continue to grapple with volatility, particularly in the tech sector, where concerns over lofty valuations are surfacing. US stocks saw declines driven by a sell-off in artificial intelligence shares.
This comes after a period where the AI-driven market rally had turned highly volatile amid questions about profitability and increasing competition. A notable example of post-IPO valuation shifts is SpaceX, whose market value reportedly dropped by nearly $1 trillion since its June IPO.
Meanwhile, South Korea's KOSPI index, after falling almost 40% over six weeks, recently rebounded by 18%, highlighting the sharp swings in global sentiment. India's Nifty 50 has also extended its losing streak, reflecting a cautious environment influenced by global cues.
Monsoon watch
The intensity of southwest monsoon rainfall has slowed over the past week, particularly across central and parts of south India, though heavy rains were recorded in Kerala and some areas in the northeast and north. The India Meteorological Department (IMD) expects below-normal rains (less than 94% of the Long Period Average) for August and September, driven by a strengthening El Niño.
As of August 9, all-India season-to-date rainfall was 11% below the LPA, with August's rainfall approximately 5% below average so far. Despite this, kharif sowing acreage has improved, covering 87.7% of the normal area as of August 7, though it remains nearly 2% lower than year-ago levels due to a high base. Water storage levels in major reservoirs have steadily improved to nearly 53% of live capacity, but spatial distribution remains uneven.
What we'll be watching
- Release of US Federal Reserve's latest policy meeting minutes on Wednesday, August 19.
- Quarterly earnings reports from major US retailers including Walmart, Target, and Home Depot this week.
- US purchasing managers' data for August.
- IPO for Augmont Enterprises opens on Thursday, August 20.
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