Equities Slip as RBI Draft NBFC Norms Hit Financials; Rupee Holds Steady

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

India Stocks fall

By Tresha Dias

August 7, 2026 at 12:42 PM IST

Indian equities ended lower on Friday, snapping a two-session gaining streak, as a sell-off in heavyweight financial stocks overshadowed gains in information technology shares following release of the draft proposal on non-bank lenders. The Sensex fell 455.59 points, or 0.58%, to 78,499.17, while the Nifty50 declined 65.35 points, or 0.27%, to 24,570.65.

The downside remained concentrated in financial stocks, with the Nifty Financial Services index dropping nearly 1.5% as Bajaj Finance, Bajaj Finserv and private banks came under pressure following the RBI's draft norms proposing restrictions on revolving credit facilities for most NBFCs. Gains in information technology and automobile stocks cushioned the decline in the broader market, which proved more resilient, with the BSE MidCap index edging higher and the SmallCap index ending flat.

Brent crude oil rose 0.3% to $82.70 a barrel on concerns over the reopening of the Strait of Hormuz and the prospect of Iranian restrictions on vessels deemed hostile or in breach of proposed rules.

The Indian rupee ended little changed at 95.2075 per dollar today as likely intervention by the Reserve Bank of India offset pressure from higher oil prices, helping the currency post a modest weekly gain of about 0.2%. State-run banks were seen selling dollars through the session, traders said, keeping the rupee in a tight range as investors stayed cautious ahead of the closely watched US jobs report.

The yield on the 10-year benchmark government bond 6.94%, 2036 traded at 6.7651%, compared to the previous close of 6.7666%. The Reserve Bank of India set the cutoff for the 7.11%, 2066 bond at 101.84 rupees or 7.5618% yield, against 101.70 rupees estimated by a 91bps poll. Demand from insurers and pension funds was firm at the auction for the 40-year bond. A large state-owned insurer likely picked up the bond at the auction. The bid-to-cover ratio was also over 3, with bids worth 345.60 billion rupees made against 110 billion rupees worth of bonds on offer.

Top Movers of the day

TCS led the Nifty 50 gainers, rising 3.46% to ₹2,455. The IT heavyweight outperformed as buying returned to large-cap IT stocks ahead of the earnings season, with investors favouring defensive technology names after recent underperformance.

Mahindra & Mahindra gained 2.82% to ₹3,502. The auto major participated in the broader buying in vehicle stocks, supported by optimism around rural demand, festive‑season sales and a strong product lineup in SUVs and farm equipment.

HCL Technologies added 1.07% to ₹1,349.30,as investors continued rotating into defensive IT stocks, supported by expectations of resilient margins and a healthy large-deal pipeline.

Hero MotoCorp climbed 3.27% to ₹5,732 intraday, hitting a five‑month high. The two‑wheeler leader posted robust June‑quarter results, with revenue up 36% year‑on‑year and strong volume growth across commuter, premium and electric segments, while management highlighted cost controls to offset higher input prices.

Britannia Industries rose 1.92% to ₹5,508 reporting strong Q1 results. The FMCG major posted robust volume growth and margin expansion, driven by premiumisation, better realisations and controlled input costs, prompting fresh buying in the counter.

Siemens Energy India gained 0.30% to ₹154.14 as investors reacted to its healthy Q1 numbers and improved order book in power and grid equipment. The stock benefited from strength in the power‑equipment complex and expectations of continued capex in transmission and distribution.

Tech Mahindra added 0.40% to ₹1,638.80, outperforming in a weak broader market. The IT mid‑cap saw selective accumulation as investors positioned ahead of earnings, supported by expectations that margins would remain stable.

Wiproadvanced 0.32% to ₹186.71, joining the selective buying in large‑cap IT. Investors viewed the stock as a defensive bet ahead of quarterly results, with expectations of stable revenue trends and gradual margin improvement supporting sentiment.

Bajaj Finance fell 5.56% to ₹1,081.20 after the Reserve Bank of India's draft proposal to restrict most NBFCs from offering revolving credit facilities sparked concerns over the company's lending model, prompting broad selling across the financial sector.

Bajaj Finserv dropped around 3.93% to ₹2,004, tracking losses in group company Bajaj Finance after the Reserve Bank of India proposed draft norms that would bar most non-bank lenders from offering revolving credit facilities. Investors worried the proposal could affect Bajaj Finance's lending model if implemented.

Futures & Options
The Nifty August 2026 futures contract settled at 24,651.20, a premium of 80.55 points to the Nifty 50 cash index, which fell 65.35 points, or 0.27%, to close at 24,570.65. The premium indicated traders retained a cautiously positive near-term outlook despite weakness in the cash market.

Market volatility inched higher, with the NSE India VIX rising 0.76% to 12.15. State Bank of India, Reliance Industries and Hindalco Industries were the most actively traded individual stock futures contracts on the NSE. The August 2026 F&O series expires on August 25, 2026.

Bonds
The yield on the 10-year 6.94%, 2036 government bond traded at 6.7651% compared to the previous close of 6.7666%. The Reserve Bank of India set the cutoff for the 7.11%, 2066 bond at 101.84 rupees or 7.5618% yield, against 101.70 rupees, estimated by a 91bps poll. Demand from insurers and pension funds was firm at the auction for the 40-year bond. A large state-owned insurer likely picked up the bond at the auction. The bid-to-cover ratio was also over 3, with bids worth 345.60 billion rupees made against 110 billion rupees worth of bonds on offer.

Forex
The Indian rupee ended little changed at 95.2075 per dollar today as likely intervention by the Reserve Bank of India offset pressure from higher oil prices, helping the currency post a modest weekly gain of about 0.2%. State-run banks were seen selling dollars through the session, traders said, keeping the rupee in a tight range as investors stayed cautious ahead of the closely watched US jobs report.

Meanwhile, strong foreign exchange inflows under measures to strengthen India's balance of payments have bolstered the RBI's ability to support the rupee, with State Bank of India raising about $6 billion under its overseas foreign currency deposit scheme and expecting the total to reach around $10 billion by the end of September.

Crypto
The cryptocurrency market traded largely steady today, with Bitcoin consolidating above $64,000 while Ethereum advanced as investors awaited the US jobs report for fresh market direction.

Bitcointraded near $64,354.99 today, broadly unchanged over the past 24 hours as it consolidated above the $64,000 mark. The cryptocurrency's market capitalisation stood at about $1.29 trillion, while 24-hour trading volume reached $21.64 billion. Spot Bitcoin ETFs attracted $626 million in net inflows over the past three sessions, led by BlackRock's IBIT fund, although investors remained cautious ahead of today's US jobs report and continued to monitor developments surrounding the CLARITY Act.

Ethereum traded near $1,912.67 today, extending modest gains and holding above the $1,900 level. The second-largest cryptocurrency tracked the broader market's steady performance as investors assessed the Federal Reserve's policy outlook, ETF flows and upcoming US economic data for fresh trading cues.

US Stock Futures
US stock futures were mixed today as investors awaited the July jobs report, with the closely watched labour market data expected to provide fresh clues on the Federal Reserve's interest rate path.

Nasdaq-100 futures rose 0.32%, while S&P 500 futures gained almost 0.1%. Dow futures, however, slipped 53 points, or 0.1%, as traders remained cautious ahead of the data release.

US Treasury Notes
The yield on the US Treasury10-year note held around 4.68% today after rising more than 5 basis points in the previous session, as investors awaited the closely watched July jobs report for fresh clues on labour market strength and the outlook for Federal Reserve monetary policy. Fed officials have increasingly signaled they are prepared to raise interest rates soon amid mounting inflationary pressures, with markets pricing in a 25-basis-point hike in September.

The Financial Times reported that Chair Kevin Warsh would be willing to raise rates next month if inflation readings in the coming weeks remain elevated. Treasury yields were supported by a rebound in oil prices as renewed tensions in the Strait of Hormuz reignited concerns about inflation and the interest rate outlook.

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