Indian equity benchmarks opened on a cautious note Friday, with the NSE Nifty50 starting at 24,284.05 against a previous close of 24,231.85, while the BSE Sensex opened at 77,701.07 after closing at 77,537.72 on Thursday. By 9.20 am, the Nifty had slipped to 24,230.65, down 1.20 points, while the Sensex traded at 77,532.70, lower by 5.02 points or 0.01%. The muted open follows Thursday's rebound, when the Nifty gained 154 points and the Sensex rose 628 points, snapping a seven-session losing streak. However, analysts warn the recovery may be fragile, with Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments, stating that yesterday's rally is unlikely to sustain given the latest headwinds from Brent crude approaching $94 and US bond yields again climbing up. Three index heavyweights — HDFC Bank, ITC, and HUL, which together account for roughly 10% of the Nifty 50's total market capitalisation — fell more than 1% intraday amid weak global sentiment. The total market capitalisation of BSE-listed firms ended the session at ₹490.8 trillion, down ₹1.7 trillion. Market breadth was negative with 2,572 stocks declining against 1,728 advances, while FPIs were net buyers by ₹408 crore and domestic institutional investors supported the market with net purchases of ₹3,974 crore.
Foreign institutional investors remained net sellers on Thursday, offloading equities worth ₹583 crore, while domestic institutional investors bought equities worth ₹3,537 crore, providing a key cushion. According to provisional data, FIIs bought equities worth ₹12,875.76 crore and sold shares worth ₹12,467.77 crore, resulting in a net purchase of ₹407.99 crore. DIIs, meanwhile, bought equities worth ₹17,288.58 crore and sold shares worth ₹13,314.86 crore, taking their net buying to ₹3,973.72 crore. Together, FIIs and DIIs recorded a combined net purchase of ₹4,381.71 crore in equities during Wednesday's session. The latest figures extend the buying trend seen in the previous session, with FIIs being net buyers of ₹1,651.53 crore on Tuesday, while DIIs bought equities worth ₹2,579.31 crore on a net basis. The combined institutional net buying on Tuesday stood at ₹4,230.84 crore, with both foreign and domestic institutional investors remaining on the buying side for a second consecutive session, although foreign buying moderated sharply on Wednesday compared with Tuesday.
Asian markets opened mostly higher on Thursday, August 20, as easing bond market pressures boosted investor sentiment after the US Treasury unveiled plans to repurchase longer-dated debt to help contain borrowing costs. MSCI's Asia-Pacific equity index climbed 0.8%, with South Korean markets leading the regional rally as the Kospi jumped 3.86% during intraday trade. Japan's Nikkei 225 gained 0.95% and the Topix advanced 0.80%, while Hang Seng futures indicated a 0.9% increase. Wall Street also showed strength with S&P 500 futures edging up around 0.1% and Nasdaq-100 futures gaining 0.3%, while Dow Jones Industrial Average futures rose 19 points, or 0.04%. However, Wall Street fell sharply overnight, with the S&P 500 dropping 0.87% and the Nasdaq losing 1% as 10- and 30-year Treasury yields rebounded after a brief intervention-driven dip. US Treasury Secretary Scott Bessent indicated the government could increase buybacks of long-term debt to at least $4 billion per operation to stabilise markets. Oil prices rose to one-month highs after President Donald Trump threatened severe economic consequences for nations trading with Iran, pushing WTI into the $86–$87 per barrel range. Brent crude futures for October delivery edged up 25 cents, or 0.3%, to $91.87 a barrel, while U.S. West Texas Intermediate (WTI) crude for September was down 2 cents at $85.81 a barrel.
Several major corporate announcements are expected to influence Thursday's trading session, with key developments across multiple sectors. Hyundai Motor India plans to increase vehicle prices by up to 1% across its portfolio, effective September 2026, citing rising input and commodity costs, higher operational expenses and continuing geopolitical uncertainties. Aditya Infotech's board approved raising funds through securities issuance up to ₹1,500 crore, including any premium, subject to shareholder and regulatory approvals. BSE entered into an agreement with MSCI for index futures and options contracts, with the exchange exploring launch of derivatives linked to these indexes, subject to regulatory approvals. Graphite electrode manufacturer HEG received NCLT approval for its Composite Scheme of Arrangement, while Ceigall India secured five Letters of Acceptance from MoRTH for road construction projects worth ₹2,423.70 crore on NH-913 in Arunachal Pradesh. HDFC Life Insurance received IRDAI approval for reappointing Vibha Padalkar as MD and CEO for five years from September 12, 2026, along with Niraj Shah as CFO for five years from April 26, 2026. Other notable developments include The Phoenix Mills receiving equity share allotments from O2 Renewable Energy XXVIII, Engineers India fixing September 24, 2026 as record date for FY26 final dividend, and Astra Space Technologies converting from private to public limited company.
The Nifty found support at the lower band of the rising channel and filled a gap on the daily timeframe, with the 61.8% Fibonacci retracement level coinciding with these support levels where the index made a low. Technically, the 24,000–24,050 band is seen as critical support, with Devarsh Vakil, Head of Prime Research at HDFC Securities, stating that sustained buying above 24,375 will be crucial to negate the prevailing short-term downtrend. On the upside, resistance is pegged at 24,300–24,500, with analysts at Kotak Securities placing the 50-day SMA support at 24,150. India VIX eased to 10.75, while the Put-Call Ratio improved to 1.10, signalling a relatively steadier derivatives setup. SBI Securities' Sudeep Shah sees immediate support in the 23,950-23,900 zone, with a sustained break below this range potentially dragging the index towards 23,750, followed by 23,600. Angel One's Hitesh Rathi sees immediate support at 24,040-24,000, followed by stronger support at 23,900, with resistance at 24,200-24,300, followed by 24,400. According to Siddhartha Khemka of Motilal Oswal, the Nifty is expected to remain under pressure amid weak global cues, elevated crude prices and continued geopolitical tensions. Markets will also track FOMC meeting minutes and US jobs data for fresh direction on the Fed's rate path, with both likely to set the tone for the rest of the week. On the currency front, the rupee gained 5 paise to close at 95.7 on Thursday, snapping a three-day losing streak as dollar weakness supported Asian currencies.
