The Prime Daily: 20 August 2026

Authored By Prime Research | Published at: Aug 20, 2026 09:03 AM IST

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Equity benchmarks snap losing streak on Treasury buyback news

U.S. stock indexes broke a three-day slide as easing pressure in the bond market and strong retail earnings lifted sentiment. The S&P 500, Dow, and Nasdaq Composite each edged up roughly 0.2%.

Treasury Secretary Scott Bessent announced the department would more than double its buybacks of 10- to 30-year debt, to at least $4 billion per operation from $2 billion, over the next two months. The move came just after the 30-year yield hit a nearly 20-year high, sending it tumbling by almost 9 basis points as bond prices rose.

Investors read the buyback increase as easing near-term borrowing-cost pressure, more broadly, as a signal of Bessent’s ongoing effort to bring down yields across maturities countering recent worries over heavy AI-related borrowing, inflation, and the fiscal deficit.

The dollar index fell about 0.9% to 98.80, a three-month low, as safe-haven demand eased; the euro rose to $1.1674, its best level since late May.

Total U.S. public debt topped $40 trillion this week, up roughly $1 trillion in a few months, with the annual deficit projected to reach $2.1 trillion by fiscal year-end underscoring the backdrop for the buyback move, which reduces near-term issuance pressure but does not address the underlying debt load.

Moderna led S&P 500 healthcare gainers after Phase 3 data showed its personalised mRNA cancer vaccine, developed with Merck, cut melanoma recurrence when paired with Keytruda. Merck shares hit a record high on the news; the sector as a whole closed at a record.

SK Hynix unveiled a $28–29 billion treasury share buyback the largest in South Korean corporate history sending its stock up roughly 6% and lifting peers SanDisk (+5%) and Micron (+3%).

Trump said the U.S. would launch what he called the “most crushing economic operation ever taken against any country” against Iran, threatening penalties on nations helping Tehran evade sanctions extending the “Operation Economic Fury” pressure campaign running since April.

Brent crude rose for a fourth straight session to near $92 as talks with Iran remained stalled and Strait of Hormuz traffic stayed well below pre-war levels.

The rupee weakened by 7 paise to close at 95.75 per dollar, marking its lowest level in August. With a softening US Dollar Index and stable crude prices, the rupee is positioned to open with an upward bias.

From its recent peak, Nifty has corrected by approximately 750 points, retracing 61.8% of the rally from the July 24 low of 23,606 to the August 3 high of 24,774a key level that often acts as a decision point for trend continuation or reversal.

The bullish structure remains intact only as long as the upward-sloping trendline connecting the April, June and July swing lows holds, with strong support clustered around 24,000. On the upside, immediate resistance has now shifted down to 24,300; a sustained close above this level would be the first sign of stabilisation and could pave the way for a meaningful pullback.

Indian equities are set for a positive start on conducive Global cues.

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