Indian equity benchmarks showed signs of recovery during Tuesday's session, with Sensex declining 57.51 points or 0.07% to 77,314.46 and Nifty 50 falling 44.75 points or 0.19% to 24,173.95 as per Business Standard. The Sensex, which closed Monday at 77,369.11, opened at 77,295.49 while Nifty 50, which ended the previous session at 24,219.05, opened at 24,175.75. The Nifty 25 August 2026 futures were trading at 24,340.70, at a premium of 166.75 points compared to the spot price. The market breadth remained negative with 1,781 shares rising and 2,282 shares falling on the BSE, while 243 shares remained unchanged. The India VIX declined 3.01% to 11.18, indicating reduced volatility expectations. As per CNBC TV18, the two benchmarks have now fallen around 1.3% over the past two weeks as investors assess the impact of the Middle East conflict on crude prices, inflation and bond yields.
Banking and financial stocks emerged among the key drags on the benchmarks as profit-booking weighed heavily on both private and PSU lenders. As reported by Business Standard, Bajaj Finance declined 1.26%, Bajaj Finserv dropped 1.22%, Axis Bank fell 0.85% and Trent slipped 0.87%, making them major Nifty drags. The Nifty Bank index declined 236 points to 57,526, with major banks posting significant losses including Bank of Baroda and Canara Bank among the top losers in the segment. The Nifty Financial Services indices remained under pressure throughout the session, contributing significantly to the overall market decline. SBI Life, Bajaj Finance and Bajaj Finserv also featured among the biggest drags on the Nifty, while Tata Motors Passenger Vehicles was another notable loser. This sector-specific weakness offset gains in other segments of the market, with the broader market outperforming as the BSE 150 MidCap Index fell only 0.01% and the BSE 250 SmallCap Index shed 0.17%. According to TradingView News, PSU Bank and Defense indices shed nearly 1%, while except IT, energy, metal and realty, all other sectoral indices ended in the red with PSU Bank down 1% and private bank, media, consumer durables down 0.3-0.5%.
The Nifty Media index jumped 0.57% to 1,612.40, recovering from a 1.12% decline in the two consecutive trading sessions as per Business Standard. Nazara Technologies Ltd surged 3.32%, Zee Entertainment Enterprises Ltd gained 0.97%, and Tips Music Ltd advanced 0.61%. Afcons Infrastructure added 2.30% after the company received an arbitral award of ₹335.50 crore in its favour against Uttar Pradesh Expressways Industrial Development Authority on August 24, 2026. Sigma Advanced Systems was locked in 5% upper circuit after securing an additional long-term agreement worth nearly ₹1,250 million (approximately ₹1,600 crore) from Rolls-Royce. Entero Healthcare Solutions surged 8.38% after 3P Investment Managers, founded and managed by veteran fund manager Prashant Jain, acquired a 2.5% stake in the company through bulk deals on August 24, 2026. JSW Steel emerged as the biggest gainer, rising 2.57% to ₹1,327, while SBI Life Insurance was the biggest loser, falling 1.73% to ₹1,761.80.
The latest decline was driven by a tech-driven selloff on Wall Street, escalating US-Iran tensions and cautious sentiment ahead of Nvidia's earnings, as reported by The Hindu BusinessLine. Asian markets opened on a weaker note, with Japan's Nikkei 225 falling around 1% and South Korea's Kospi declining over 2.5%, as the overnight semiconductor selloff on Wall Street spilled into the region. The Dow Jones closed up 140 points or 0.26% on Monday, but the S&P 500 fell 0.28% and the Nasdaq dropped 0.76%, dragged by a sharp fall in semiconductor stocks. Micron slid nearly 6% and Nvidia slipped below $210 ahead of its Wednesday earnings report. Shrikant Chouhan, Head of Equity Research at Kotak Securities, warned that a bearish candle on the daily charts points to further pressure, noting that "We believe 24,250/77,500 will act as an immediate resistance zone for bulls. As long as the index trades below this level, the weak formation is likely to continue. On the downside, the market could slide towards 24,150/77,200."
The India VIX declined 3.01% to 11.18, signalling reduced caution among investors as per Business Standard. The Nifty option chain for the 25 August 2026 expiry indicated a narrow trading range, with maximum call open interest of 4.47 crore contracts at the 24,200 strike and maximum put open interest of 3.85 crore contracts at the 24,150 strike, suggesting stiff resistance near 24,200 and strong support at 24,150. Crude oil remained a key factor for markets despite easing during the session, with Brent crude holding near $90 a barrel after falling 4% on Monday following the sanctions rollout, while WTI remained firm near $85. Iran's rial has fallen to a record low, and shipping through the Strait of Hormuz remains severely constrained. Gold was above $4,700 an ounce and silver around $69.6, both at three-month highs, reflecting continued safe-haven demand, with the rupee standing at 95.74. US Treasury Secretary Scott Bessent unveiled what he described as an "economic asphyxiation" sanctions campaign against Iran, warning that a major financial institution would be sanctioned within days, driving demand for safe-haven assets while pressuring risk assets.
