Market Close Report Today, August 18, 2026: Nifty, Sensex Continue To Decline As Oil, Iran Weigh

Mumbai, August 18: Indian benchmark indices extended their losses on Tuesday as rising crude oil prices, US-Iran tensions and elevated US bond yields kept investors cautious. The Nifty extended its losing streak to six sessions, while selling was particularly pronounced in IT. 

Sensex, Nifty Extend Losing Streak 

The Sensex declined 0.63% while the Nifty 50 fell 0.55%. 

The sell-off was broad-based, with 1,860 shares advancing, 2,258 declining and 172 remaining unchanged on the NSE. The Nifty had been under pressure from the opening bell, with the benchmark down 0.27% at 24,219.80 by 9:48 a.m., while the Sensex was down 0.40% at 77,418.06. 

The Nifty’s six-session losing streak comes as investors contend with a combination of geopolitical uncertainty, higher energy prices and rising global yields. 

IT Stocks Lead Sectoral Decline 

Information technology stocks emerged as the biggest drag on the market, with the Nifty IT index falling 1.9%. Infosys, HCL Technologies and Wipro were among the top losers on the Nifty. 

The weakness in IT stocks added significant pressure to the frontline indices given the heavy weight of technology companies in the benchmark. 

Realty, FMCG And Metals Also Fall 

Selling was visible across several other sectors. The Nifty Realty index declined 1.4%, while FMCG stocks fell 0.7% and the metal index slipped 0.6%. 

The broader weakness reflected a cautious approach among investors as concerns over crude oil, global interest rates and geopolitical risks weighed on risk appetite. 

Auto, Media And Oil & Gas Buck The Trend 

Some sectors managed to close higher. Auto, media and oil & gas stocks ended in positive territory. 

Among stocks, Axis Bank, Max Healthcare, Grasim Industries, Mahindra & Mahindra and Power Grid Corporation were notable gainers. 

The relative strength in oil & gas stocks came as crude prices remained elevated. 

Crude Oil Above $91 Adds To Pressure 

Crude oil emerged as a major trigger for Tuesday’s weakness. Brent crude climbed above $91 a barrel after a temporary US-Iran ceasefire expired and hopes of a fresh agreement faded. 

Iran indicated it could adopt a more offensive posture, while US President Donald Trump ruled out extending the ceasefire arrangement.  

For India, sustained higher crude prices are particularly concerning as the country is the world’s third-largest oil importer.  

Higher US Bond Yields Weigh  

Rising US Treasury yields added another headwind. The US 10-year bond yield moved higher, making emerging-market assets relatively less attractive and potentially reducing foreign investor demand for Indian equities. 

Analysts highlighted the rise in Brent crude above $91 and the increase in the US 10-year bond yield as two developments likely to affect the market. 

Foreign portfolio investors were already net sellers on Monday, withdrawing Rs 2,535 crore. 

Domestic institutional investors offered support, making purchases of Rs 5,101 crore on Monday. 

Broader Markets Hold Up Relatively Better 

The broader market was more resilient, although midcaps also ended lower. The Nifty Midcap index fell 0.4%, while the Nifty Smallcap index ended flat. 

The relatively stronger performance of smallcaps suggests that the sharpest pressure was concentrated in large-cap stocks, particularly IT names. However, negative market breadth showed that selling remained fairly widespread across the exchange. 

Stocks In Focus 

Among individual stocks, Colgate-Palmolive India fell 3% after brokerages flagged concerns over the trade-off between the company’s growth investments and margin protection following an analyst meeting. Analysts said the company’s growth agenda, category expansion and premiumisation opportunities could come with pressure on earnings growth. 

At the other end, Indo-MIM jumped 10% after reporting a 32% rise in June-quarter profit, while Highway Infrastructure gained 4% after securing an Rs 80.17-crore contract from the National Highways Authority of India. 

Milky Mist Dairy Food surged 29.6% above its IPO issue price in its stock market debut, extending gains sharply after listing on the domestic exchanges. 

Vodafone Idea shares climbed 3% on Tuesday, rebounding after Monday’s profit-taking, as investors continued to weigh the telecom operator’s ambitious three-year turnaround plan focused on network expansion, faster revenue growth, stronger cash generation and a recovery in market share. 

Motisons Jewellers shares rose 1.4% on Tuesday after the previous session’s profit-booking following a results rally. 

What Next For Indian Markets? 

With the Nifty closing at 24,154.90, the 24,000 level is likely to remain an important psychological marker for investors after six consecutive sessions of declines. 

The near-term market direction will depend heavily on crude oil movements, developments around the US-Iran conflict, global bond yields, the rupee and foreign fund flows. Until geopolitical tensions ease and oil prices retreat, Indian equities are likely to remain vulnerable to bouts of volatility, even as domestic institutional buying provides some support. 

Source

• NSE
• BSE