Market Wrap: Equities Rebound Ahead of Nifty Expiry; Rupee Gains, Bonds Firm as Oil Falls

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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By Dehuti Jani

August 25, 2026 at 12:54 PM IST

Indian equities reversed early losses on Tuesday as a sharp decline in crude oil prices supported risk appetite, while volatility persisted ahead of the first monthly Nifty 50 derivatives expiry under the new closing-auction system. The Nifty 50 rose 115.50 points, or 0.48%, to 24,334.55, while the Sensex gained 286.98 points, or 0.37%, to 77,656.09.

Twelve of the 16 major sectors advanced, led by healthcare, pharma and PSU banks. Adani Enterprises, Max Healthcare Institute and Apollo Hospitals Enterprise were the top Nifty gainers. The Nifty MidCap rose 0.54%, while the SmallCap index fell 0.1%. The Nifty Healthcare, Pharma and PSU Bank indices outperformed, while Private Bank and Metal stocks lagged.

Brent crude fell 3.2% to $89.20 a barrel, with traders shrugging off the latest US sanctions on Iran. Markets drew some comfort from Washington's shift towards economic sanctions rather than military escalation, although the trajectory of oil prices remains a key risk for global equities.

The Indian rupee rose to a more than one-week high, supported by lower oil prices and continued central bank intervention. The rupee closed at 95.4125 per US dollar, strengthening 0.3% from 95.7450 previously. Indian government bond yields also fell as lower crude prices and US Treasury yields supported sentiment, while renewed hopes of progress in US-Iran talks provided an additional boost. The benchmark 6.94%, 2036 bond yield fell to 6.8488%, from 6.8708% on Monday.

Top Movers of the day
Hindustan Copper fell 7.45% to ₹531.40 after the government launched an offer for sale to divest a 3% stake, with an option to sell an additional 3% if oversubscribed. The OFS was priced at a 10% discount to the market price, triggering heavy supply and selling pressure.

Federal Bank fell about 3%, while Jana Small Finance Bank declined 1.9%, after CNBC-TV18 reported that Jana's promoter may sell its entire 16.9% stake to Federal Bank. Federal Bank told the exchanges that there was no material event requiring disclosure in connection with the report.

Godrej Agrovet gained 6.59% to ₹610.50, its strongest move in 21 weeks, with trading volumes nearly 180% above its five-day average. The stock rebounded from its 52-week low, supported by technical buying and short-covering after a prolonged correction.

Tata Consultancy Services recovered 0.17% to end at ₹2,288 after declining around 2.5% today tracking weakness in the IT sector. The company shares gained on announcement of a major five-year deal with Porsche AG and agreement to acquire Porsche’s IT consulting subsidiary.

Kotak Mahindra Bank declined around 0.12% to ₹400.95, tracking weakness in private-bank stocks and mild profit booking as investors trimmed financial-sector positions ahead of key macro events next week.

Media stocks, including Zee Entertainment and Sun TV Network, outperformed, with the Nifty Media index among the top sectoral gainers. The sector benefited from stock-specific buying and defensive positioning.

PSU banks held up relatively well, with Union Bank of India and Bank of Maharashtra among the stocks showing resilience. Sentiment was supported by Union Bank's 600-million-dollar dollar-bond issue, its first public dollar bond issue in 12 years.

Piramal Finance shares fell 0.53% to ₹2,172.60 after the company’s board approved a 17.50 billion rupees preferential warrant to a promoter group entity on Monday.

Afcons Infrastructure rose 2.42% to ₹285.40 after the company won a favourable arbitration award against Uttar Pradesh Expressway Industrial Development Authority worth 3.35 billion rupees. Investors also focussed on the company's execution visibility and order pipeline in the infrastructure segment.

Tempsens Instruments remained in focus following the allotment of its ₹6.50 billion IPO. The issue, comprising a ₹950 million fresh issue and an offer for sale, was fully subscribed ahead of its market debut.

Futures & Options
The Nifty September 2026 futures closed at 24,485.20, a premium of 150.65 points to the Nifty 50 cash index, which ended at 24,334.55. The Nifty 50 gained 115.50 points, or 0.48%, in the cash market.

The India VIX fell 3.40% to 11.13, signalling lower near-term volatility expectations. HDFC Bank, Infosys and Reliance Industries were the most actively traded individual stock futures contracts on the NSE. The September 2026 F&O contracts will expire on 29 September 2026.

Bonds
Indian government bonds rose in a volatile session, supported by renewed hopes of a de-escalation in West Asia, a decline in crude oil prices and lower US Treasury yields.

The benchmark 6.94%, 2036 bond yield fell to 6.8488% from 6.8708% on Monday.

Buying interest strengthened after Pakistan’s interior minister said significant progress had been made during talks with the Iranian President, reviving expectations of a possible diplomatic breakthrough between the US and Iran.

The decline in crude oil prices eased concerns over imported inflation, providing additional support to domestic bonds. Lower US Treasury yields also improved the relative attractiveness of Indian government securities.

However, trading remained volatile as investors continued to assess developments in West Asia and their implications for oil supplies and inflation. Market participants are likely to remain cautious until there is greater clarity on the durability of diplomatic efforts and the direction of crude prices.

Forex
The Indian rupee strengthened to an over one-week high on Tuesday, supported by a sharp pullback in crude oil prices, while sustained Reserve Bank of India intervention kept a firm lid on losses during most of the session. The rupee closed at 95.4125 per US dollar, up 0.3% from 95.7450 previously, after trading in a narrow 95.70–95.75 range for much of the session.

The currency gained later in the day as Brent crude fell more than 3% to $89.2 a barrel, with traders viewing economic sanctions on Iran as posing less risk to oil supplies than military escalation. Washington warned countries to reduce business ties with Iran or face secondary sanctions, although the US Treasury Department stopped short of imposing penalties.

Crypto
The crypto market extended its recent gains on Tuesday, with total market capitalisation hovering around $2.66 trillion. Bitcoin rose 1.35% in the latest session and traded near the psychologically important $80,000 level, after touching an intraday high of $81,257. Ethereumheld above $2,500, while Solana, XRP, BNB and other large-cap tokens also advanced.

The broader rally, which accelerated around August 18, has been supported by short liquidations and improving risk appetite. The move has pushed Bitcoin and Ethereum towards key technical levels, although investors remain alert to the potential for increased volatility as the rally extends into higher valuation territory.

US Stock Futures
US stock futures rose early Tuesday as investors looked to recover from the previous session's decline while positioning ahead of Nvidia's quarterly results and key US inflation data due later this week. Dow Jones futures gained 0.2%, while S&P 500 and Nasdaq 100 futures advanced 0.3% and 0.6%, respectively.

Investors remained cautious after last week's market pullback and continued to trim risk ahead of Nvidia's earnings, due after the closing bell on Wednesday. The results are expected to provide fresh direction for technology stocks and the broader AI trade.

US Treasury Notes
The 10-year US Treasury yield steadied around 4.68% on Tuesday as investors assessed the implications of the Treasury Department's expanded debt buyback programme. Reports that the US government could use its cash account to finance the larger buybacks raised questions over a potential shift in debt-management strategy, as such purchases are typically intended to be cash-neutral and funded through new issuance. Treasury Secretary Scott Bessent offered no further indication of a broader overhaul of US debt management but reassured markets that Treasury auction sizes would not be reduced.

Investors remained cautious over whether the buyback programme would provide only temporary relief, with concerns over US fiscal sustainability and potential dollar weakness persisting. Markets are also looking ahead to the US PCE price index and Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium later this week for clues on the monetary policy outlook.

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