Equities Extend Losing Run as Oil Nears $90; Rupee, Bonds Weaken on RBI Move

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

By Dehuti Jani

August 17, 2026 at 12:57 PM IST

Indian equity benchmarks extended their declines on Monday as the lack of progress towards ending the Iran war kept crude oil prices elevated, while the end of the quarterly earnings season left investors with fewer domestic triggers. The Nifty50 fell 78.35 points, or 0.32%, to 24,287.65, marking its fifth straight session of losses, while the Sensex declined 281.09 points, or 0.36%, to 77,728.16.

The benchmarks continued to diverge between the regular close at 1515 IST and the new closing auction session, with Monday marking one of the first instances of the indices closing lower after the auction than at the end of regular trading.

Brent crude rose nearly 1% to around $89 per barrel after US President Donald Trump warned Americans to prepare for continued high fuel prices amid the Iran war. IT stocks led the decline, with the Nifty IT index falling nearly 2%, while FMCG stocks also weighed on the benchmarks. Infosys, Sun Pharmaceutical Industries and HCL Technologies were the top Nifty50 losers. In contrast, Nifty Metal and Nifty Realty outperformed. Broader markets remained resilient, with the Nifty MidCap and SmallCap indices gaining 0.05% and 0.36%, respectively.

The Indian rupee weakened to around 95.49 per US dollar, its weakest level in two weeks, after the Reserve Bank of India unexpectedly advanced the deadline for its discounted foreign-exchange swap facility for non-resident deposits. The RBI brought forward the cutoff for the zero-cost hedging facility for FCNR(B) deposits to August 31 from September 30, despite more than $50 billion of inflows through the scheme, raising concerns over future dollar inflows.

Indian government bond yields rose, with the 10-year G-Sec yield climbing to around 6.81%, a near two-week high. The RBI's decision to bring forward the closure of the FCNR(B) facility raised concerns over reduced demand for government securities, particularly four- to six-year maturities where much of the inflows under the scheme had been invested. Rising Brent crude - which rose to near $89 per barrel - and uncertainty over US-Iran peace talks and tanker traffic through the Strait of Hormuz added to the pressure on gilts.

Top Movers of the day

Ipca Laboratories gained 8.13% to ₹1,875.20, driven by stellar June quarter (Q1FY27) financial results, strong export growth, and an upward revision to the company's full-year fiscal guidance.

Hindustan Copper rose 7.73% to ₹569.95 , supported by strength in copper prices that recorded near record high on London Metal Exchange. The rally was driven by aggressive stockpiling ahead of a potential US tariff decision, and strong financial performance with a multi-fold jump in quarterly net profit.

Balrampur Chini Mills advanced 4.99% to ₹645.00 on a sharp rise in domestic and global sugar prices helped by festival demand expectation.

Voltas shares fell 4.35% to ₹1,263.00 after first-quarter April–June earnings missed market expectations. CLSA maintained it underperform rating with a target price of 1,160 rupees, noting that EBITDA was broadly in line with estimates and supported by industry-leading growth in room air-conditioners. However, CLSA said margins remained weak despite strong volume growth and price hikes amid commodity inflation.

Cochin Shipyard fell 2.64% to ₹1, 457.00 today following the release of weak financial results for the April-June quarter of FY27, which revealed a 19.4% year-on-year drop in net profit down to ₹1.52 billion alongside shrinking operating margins.

GE Power India declined 5% to ₹731.15, leading the early losers as investors reduced exposure to industrial and capital-goods counters. The shares fell due to profit booking and a sharp year on year fall in its net profit.

Embassy Office Parks REIT fell 2.67% to ₹440.06, due to a large block deal where a Bain Capital affiliate (APAC Company XXIII Ltd) offered to sell up to a 5.64% stake (around 53 million units) at a discounted floor price of ₹430 per unit.

Turtlemint Fintech Solutions jumped 10.08% to ₹151.29, hitting a record high after its consolidated net loss narrowed to ₹378 million in April-June quarter from 467 million rupees a year earlier.

ITC declined 2% to a 52-week low of ₹273.40, as foreign portfolio investors reduced their exposure to the stock, weighing on sentiment.

PTC Industries surged 8% to an all-time high of ₹20,580, after consolidated net profit jumped 465.7% year-on-year to ₹292 million in the June quarter.

Larsen & Toubro gained 0.47% to ₹4,076.00 after its Energy Hydrocarbon Offshore business secured an ultra-mega order worth more than ₹150 billion in West Asia for the development of multiple offshore facilities. The company classifies orders above 15 billion rupees as ultra-mega.

Apollo Micro Systems fell 1.49% to ₹387.70, despite securing orders worth ₹808.38 million from defence public-sector undertakings, state governments and private industries.

Futures & Options
The Nifty August 2026 futures closed at 24,370, a premium of 82.35 points to the Nifty 50 spot index, which ended at 24,287.65. In the cash market, the Nifty 50 fell 78.35 points, or 0.32%, extending its losing streak.

The India VIX edged down 0.08% to 11.30, indicating little change in near-term volatility expectations. BSE, Reliance Industries and Voltas were the most actively traded individual stock futures contracts on the NSE. The August 2026 F&O series will expire on August 25, 2026.

Bonds
Government bond yields rose on Monday after the RBI announced the premature closure of its special FCNR(B) deposit swap window, raising concerns over reduced liquidity support for the banking system. The benchmark 6.94%, 2036 bond yield ended at 6.8071% from 6.7578% at the previous close. The market had largely expected the RBI to keep the swap window open until inflows reached around $100 billion, but inflows by end-August are now expected to be closer to $75 billion, reducing expectations of further liquidity addition.

The RBI also conducted two variable-rate reverse repo operations, further absorbing surplus liquidity from the banking system and adding pressure on shorter-tenure bonds. The benchmark 10-year bond yield rose 5 basis points, while the 5-year yield climbed 8 basis points, with short-term gilts bearing the brunt of the selling.

Forex
The Indian rupee weakened on Monday after the Reserve Bank of India unexpectedly brought forward the closure of its discounted forex swap facility for FCNR(B) deposits, raising concerns over future dollar inflows. The rupee closed at 95.6025 per US dollar, compared with 95.4250 on Friday, after touching around 95.49 during the session. The RBI advanced the cutoff for the zero-cost hedging facility to August 31 from September 30, despite more than $50 billion of inflows through the scheme.

The move weighed on sentiment as elevated crude oil prices and strong importer hedging demand added pressure on the currency. The rupee weakened despite a softer US dollar following weak US retail sales data, which reduced expectations of a Federal Reserve rate hike next month. The RBI continued selling dollars through state-owned banks to cushion the rupee, while foreign-exchange reserves at a four-month high of $707 billion as of August 7 provided greater room for intervention.

Crypto
The crypto markets consolidated on Monday, with Bitcoin holding above 63,000 dollars, Ethereum approaching 1,900 dollars, and XRP trading around the key 1-dollar support level. Bitcoin rebounded above 63,000 dollars despite 390 million dollars of spot ETF outflows through Friday last week. Cumulative ETF inflows remained positive at 51.79 billion dollars, with net assets of 76.61 billion dollars, suggesting longer-term investor interest remains intact.

Ethereum faced renewed selling pressure, with spot ETF outflows of 2.26 million dollars through Friday, ending a five-week run of inflows. Cumulative inflows remained positive at 11.45 billion dollars, while net assets stood at 10.52 billion dollars.

US Stock Futures
US stock futures traded lower on Monday as investors weighed continued strength in technology stocks against geopolitical risks in West Asia and expectations for the Federal Reserve's interest-rate path. Dow Jones futures fell 108 points (0.2%), while S&P 500 futures declined 0.17% and Nasdaq-100 futures slipped 0.28%. The pullback followed a third consecutive weekly gain for the S&P 500, which reached a record high last week.

Technology stocks remained in focus after AI company Anthropic issued a strong revenue outlook, supporting sentiment around the broader AI trade. Investors also assessed expectations for fewer Federal Reserve rate hikes as they monitored ongoing hostilities in West Asia.

US Treasury Notes
US Treasury note yields edged lower in pre-market trading on Monday as softer economic data reduced expectations of further Federal Reserve rate hikes. The benchmark 10-year Treasury yield fell about 2 basis points to around 4.69%, while the policy-sensitive 2-year Treasury yield eased to 4.16%.

The move followed a 0.6% decline in July retail sales, a flat wholesale inflation reading and softer employment data, easing pressure on the Fed to tighten monetary policy further. However, Treasury yields remained elevated amid fiscal concerns, heavy corporate debt supply and geopolitical uncertainty in West Asia. Investors are also awaiting the release of the FOMC meeting minutes for further clues on the interest-rate outlook.

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