Indian equity markets ended lower on Wednesday, August 12, 2026, but recovered sharply from the day's lows, with the BSE Sensex falling 187.90 points to 77,966.35 and the NSE Nifty declining 35.75 points to 24,435.95. The benchmark indices had opened lower, with the Sensex dipping 35.99 points to 78,097.31 and the Nifty skidding 31.15 points to 24,444.55 in early trade. The decline comes as Brent crude oil prices continued their upward trajectory, gaining 1.24% to $90.01 per barrel, while WTI Crude Oil rose 1.31% to $84.28 per barrel. The rupee provided some support, ending higher at ₹95.33 against the US dollar, compared to Tuesday's close of ₹95.44, offering relief for domestic markets despite the elevated oil prices. As per CNBC TV18, the recovery from the day's lows and strength in financial stocks helped limit the decline, with the Nifty holding above the 24,400 mark. However, the Nifty Midcap 100 bucked the trend, gaining 0.28% and touching a fresh all-time high, while the Nifty Smallcap 100 declined 0.18%. According to The Hindu BusinessLine, sentiment was weak despite Asian stocks gaining, led by Korea's Kospi that surged nearly 4%.
Tata group stocks came under severe pressure after N Chandrasekaran sought no reappointment after his term ends. The announcement triggered a sharp selloff across Tata Group stocks, with TCS falling over 5%, Tata Motors declining around 3.3%, Titan and Tata Steel slipping more than 2%. According to The Hindu, TCS dropped by 3.71% after N Chandrasekaran announced that he will step down as chairman of the group holding company Tata Sons when his current term ends in February 2027. Mr. Chandrasekaran, 63, has spent 40 years with the Tata Group, which includes his stint as TCS CEO from 2009 to 2017. As per The Hindu BusinessLine, TCS fell around 4% while Tata Motors and Tata Consumer Products declined roughly 2.5% and 1.5% respectively. Sarvam Goel, Founder of Pocketful, noted that "leadership spooked the market before earnings did," pointing to the broad sell-off across Tata Group stocks following the resignation announcement.
The market recovery was primarily driven by financial stocks, with the Nifty Bank gaining 439.60 points to 57,885.85, closing at the day's high. Public sector banks continued to see buying, with Punjab National Bank (PNB) and Union Bank rising up to 4%. PSU Banks were the standout performers, with the Nifty PSU Bank index gaining 1.8%, supported by strong asset quality, improving credit growth and lower provisions. Financial stocks remained under pressure as higher crude prices raised concerns around inflation, India's import bill and the broader interest-rate outlook. The Nifty FMCG declined 0.73%, followed by the Nifty Metal, which fell 0.54%, and the Nifty Realty, down 0.99%. However, the Nifty Auto declined only 0.55% while the Nifty Media fell 1.05%. From the Sensex pack, Bharti Airtel, Mahindra & Mahindra, UltraTech Cement, Adani Ports, Titan and Bajaj Finance were among the major laggards, while State Bank of India, Tech Mahindra, Axis Bank and Asian Paints were among the winners. The Nifty PSU Bank was nearly flat, gaining 0.01%, and the Nifty Consumer Durables gained 0.15%.
Hospital stocks declined following reports related to capping of charges, with Max Healthcare Institute and Fortis Healthcare falling 3-5%. PI Industries dropped 9% following its weak first-quarter earnings and cautious outlook. However, telecom stocks moved higher following reports related to selective tariff hikes by Bharti Airtel, with Vodafone Idea gaining 3%. From the Sensex basket, Hindalco Industries, Hindustan Aeronautics, State Bank of India, Jio Financial Services, Kotak Mahindra Bank and Nestle India were the major gainers. In contrast, Tata Consultancy Services, Max Healthcare Institute, Tata Consumer Products, Apollo Hospitals Enterprise, Tata Motors Passenger Vehicles and Tata Steel were the biggest laggards. Godrej Consumer Products fell 11% after CEO Sudhir Sitapati resigned, while PI Industries dropped 5.31% after quarterly profit fell 39% year-on-year. Hindalco Industries and National Aluminium Company (NALCO) gained 3-8% after Norsk Hydro cut alumina output, while Multi Commodity Exchange of India (MCX) rose 3% after the Securities and Exchange Board of India's paper on foreign portfolio investors in commodity derivatives. Marksans Pharma surged after net profit rose 2.5 times, and Nalco gained on rising aluminium prices.
India's retail inflation edged up to 4.45% in July 2026 from 4.38% in June, driven primarily by food prices and a sharp surge in the "other personal effects" category, largely precious metals, which rose 43.54%. Food inflation accelerated to 5.52%. The print keeps the RBI's projected inflation path on track, narrowing the window for any dovish policy surprise. According to The Hindu BusinessLine, inflation rises kept the RBI's projected inflation path on track, narrowing the window for any dovish policy surprise. Ankur Punj, MD & Business Head at Equirus Wealth, noted that "gains in banking and telecom shares helped benchmark indices close off their intra-day lows, although markets continued their downward trend with heavy selling in IT stocks keeping the mood sluggish." Foreign Institutional Investors remained net buyers for a third straight session, providing some support to the market. Looking ahead, US CPI data with a softer reading likely to support equities and gold, while a hotter print could strengthen the dollar and revive rate hike bets.
