Nifty Falls on Iran Tensions, Higher Yields; Rupee 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 24, 2026 at 1:03 PM IST

Indian benchmark equity indices ended lower on Monday as heightened geopolitical tensions around Iran and the Strait of Hormuz weighed on sentiment ahead of possible fresh US sanctions on Tehran. The Sensex fell 171.72 points, or 0.22%, to 77,369.11, while the Nifty50 declined 32.95 points, or 0.14%, to 24,219.05.

Caution prevailed as investors awaited details of the US sanctions, while Brent crude remained above $90 a barrel despite easing marginally on profit-taking. Rising domestic bond yields, following the RBI’s recent hawkish stance, also weighed on risk appetite.

The Nifty MidCap rose 0.13%, while the Nifty SmallCap fell 0.26%. PSU banks underperformed amid mark-to-market losses, while metal stocks outperformed on firm commodity prices. SBI Life Insurance, Adani Ports and Bajaj Finance were the top Nifty50 losers.

The Indian rupee ended little changed at 95.7450 per dollar today, with persistent Reserve Bank of India intervention keeping the currency in a narrow range as investors awaited details of threatened US sanctions on Iran.

The yield on the 10-year benchmark 6.94%, 2036 government bond ended at 6.8708%, up from the previous close of 6.8495%. Traders were cautious ahead of a possible announcement from the US of what Treasury Secretary Scott Bessent called the “single greatest financial offensive ever” against Iran.

Top Movers of the day

TVS Supply Chain Solutions shares jumped 9.51% to ₹132.99 after the company signed a pact with Japan-based Sankyu Inc to collaborate on supply chain and engineering services.

Muthoot Finance climbed 5.88% to ₹3,199.80 as a rise in gold prices to an over three-month high boosted sentiment towards gold-financing companies.

Vishal Mega Mart rose 9.36% to ₹113.11 today after the company reappointed Gunender Kapur as managing director and CEO for a five-year term, easing concerns over management succession.

Oriental Hotels grew 1.68% to ₹141 after the company’s board approved a merger with The Indian Hotels Company, subject to regulatory and other approvals.

Welspun Corp rose 3.89% to ₹2,401, extending the shares’ recent rally after the company secured its largest-ever single order from the US worth $1.8 billion.

Ceigall India gained 2.54% to ₹322.35 after the company received a 7.05 billion rupees order from the Ministry of Road Transport and Highways to construct a stretch of NH-913 under the EPC mode.

Urban Company jumped 6.12% to ₹168.30 after Emkay Global Financial Services initiated coverage with a ‘Buy’ rating and a target price of 190 rupees, implying about 20% upside. Sentiment was also supported after Kent RO agreed to withdraw advertisements and social media content that allegedly made false and misleading claims about Urban Company’s Native water purifiers.

Bajaj Hindustan Sugar climbed 2.03% to ₹23.60 amid buying interest on expectations of an improved outlook for the sugar sector.

IIFL Finance grew 2.53% to ₹697, tracking gains in gold-loan financiers as a rise in gold prices boosted sentiment towards the sector. The stock also hit a fresh 52-week high of 698 rupees.

Caplin Point Laboratories fell 2.57% to ₹2,495 after the US Food and Drug Administration issued 10 observations on Form 483 following an inspection of its injectable and ophthalmic manufacturing facility in Gummidipoondi, Tamil Nadu. The company said the observations were procedural and did not relate to data integrity.

Aurobindo Pharma tumbled 0.72% to ₹1,609.70 after the FDA concluded an inspection of its wholly-owned US subsidiary Lanett Company with four observations. The company said it would respond to the regulator within the stipulated time.

Futures & Options
The Nifty August 2026 futures contract closed at 24,188.10, a discount of 30.95 points to the Nifty50's cash-market close of 24,219.05. The India VIX rose 4.01% to 11.65, signalling higher near-term volatility.

HDFC Bank, Infosys and Reliance Industries were the most-traded individual stock futures contracts on the NSE.

Bonds
The yield on the 10-year benchmark 6.94%, 2036 government bondended at 6.8708%, up from the previous close of 6.8495%. Traders were cautious ahead of a possible announcement from the US of what Treasury Secretary Scott Bessent called the “single greatest financial offensive ever” against Iran.

Traders feared fresh US sanctions on Iran could further restrict crude oil supplies. Foreign banks likely sold gilts ahead of a possible announcement, while mutual funds remained sellers amid likely redemption pressures. State-owned banks provided some support at current levels, while inflows through the FCNR(B) window supported shorter-tenure bonds. Longer-tenure bonds remained under pressure as traders trimmed positions amid volatile global cues.

Forex
The Indian rupee ended little changed at 95.7450 per dollar today, with persistent Reserve Bank of India intervention keeping the currency in a narrow range as investors awaited details of threatened US sanctions on Iran.

State-run banks were seen offering dollars, likely on behalf of the RBI, traders said. The intervention has pushed the rupee's two-week realised volatility below 2%, among the lowest levels in Asia. Ongoing West Asia tensions have kept investors uncertain about when regional oil supplies could return to pre-conflict levels.

Crypto
The cryptocurrency market was largely steady on Monday, with Bitcoin trading at $77,013.19 and Ethereum at $2,442.62. Bitcoin rose 0.01% over the past 24 hours and 21.46% over the past seven days, while Ethereum gained 0.03% and 28.59%, respectively.

Bitcoin's market capitalisation stood at $1.54 trillion, with 24-hour trading volume at $33.43 billion, while Ethereum's market cap was $294.77 billion and volume was $18.25 billion.

US Stock Futures
US stock futures edged lower today after Wall Street posted weekly losses, with investors remaining cautious amid elevated Treasury yields and uncertainty over the Federal Reserve’s policy outlook.

Dow Jones Industrial Average futures fell 18 points, or 0.03%, while S&P 500 and Nasdaq-100 futures declined 0.1% and 0.3%, respectively.

US Treasury Notes
The yield on the 10-year US Treasury note fell to 4.71% today after rising for two straight sessions, as investors turned their focus to Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole symposium on Friday. Markets will look for clues on the Fed’s policy path amid persistent inflation and rising fiscal concerns, with US federal debt having crossed $40 trillion.

Investors will also await Wednesday’s release of July PCE inflation data, the Fed’s preferred gauge, for fresh signals on underlying price pressures. Meanwhile, the US Treasury’s decision to double buybacks of longer-dated debt to $4 billion per operation has provided only temporary relief to the bond market, with yields rebounding after an initial decline.

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