Nifty falls 0.55% as oil, Iran tensions and IT selling weigh

Indian equities extended their decline as renewed uncertainty over the US-Iran ceasefire pushed Brent crude above $91 a barrel. Reports said Iran could adopt a more offensive posture, while US President Donald Trump ruled out extending the ceasefire arrangement. Traders linked the resulting energy-supply concerns to the session's risk reduction.

Information technology stocks were the clearest drag. Infosys, HCL Technologies, Wipro and Tata Consultancy Services fell as analysts cited weak revenue forecasts from global technology companies, cautious corporate technology spending, AI-related disruption risks and elevated valuations. Infosys was the largest negative contributor to the Nifty, according to market reports; HDFC Bank and Bharti Airtel were also cited among the leading drags.

The decline extended the benchmark's losing streak to six sessions. That price action reflected a combination of external pressure and stock-specific selling rather than a fresh domestic macro shock identified in the available material.

The IT sector's weakness had a global rather than India-specific trigger. Brokerages cited cautious forecasts from global technology companies, including Accenture, and uncertainty over whether generative artificial intelligence could disrupt traditional outsourcing models. The implication for Indian IT exporters is that demand visibility and valuation support remain sensitive to the global technology-spending cycle.

Telecom and internet stocks were pressured by weakness in Bharti Airtel, which was among the reported index laggards. The available material does not establish a separate sector-wide trigger. In cement and materials, selling included Asian Paints and other materials-linked counters; market commentary pointed to crude-sensitive input costs for Asian Paints, but did not provide a single explanation for the entire sector.

Power was the relative bright spot, helped by gains in Power Grid. Strength in NBFCs and insurance was supported by selected financial counters such as Axis Bank, while healthcare was steadier with Max Healthcare among the reported gainers. These pockets limited the broader decline but did not offset the pressure from IT and other heavyweights.

The rupee weakened as higher oil prices increased concern over India's import bill and dollar demand. Reuters reported that the Reserve Bank of India had brought forward the closure of its zero-cost swap facility for foreign-currency deposits raised from non-resident Indians. The RBI's move, together with rising US yields and crude, added pressure to the currency and domestic bonds.

The benchmark government bond yield moved higher during the session as Indian debt tracked the rise in US yields and the oil shock. The available material does not identify any new CPI, IIP, GST, trade or PMI release on August 18. It also does not provide a fresh finance ministry action affecting equities.

Wall Street ended lower in the previous session as the expiry of the US-Iran ceasefire lifted crude prices and revived inflation concerns. Asian markets were mixed to lower during India's trading hours, with oil and bond yields limiting the benefit from otherwise resilient corporate earnings.

The US 10-year Treasury yield was reported near 4.73%, while the 30-year yield reached its highest level since 2007 in the cited market coverage. For India, the combination matters through two channels: higher global discount rates can reduce the relative appeal of emerging-market equities, while costlier energy can pressure inflation, the currency and corporate margins.

Foreign portfolio investors were net sellers of Rs 2,535.10 crore on August 17, according to provisional exchange data. Domestic institutional investors bought Rs 5,101.46 crore on the same day. No final August 18 flow figures were available in the material, so the latest reported flows should not be treated as the close-of-day figures for Tuesday.

The next session's immediate variables are the direction of Brent crude, developments around the US-Iran ceasefire and the response of US Treasury yields. For Indian equities, the rupee and foreign portfolio flows will remain important transmission channels, while domestic institutional buying has so far provided some support.

The available material does not provide a confirmed August 18 FII-DII closing print, a new domestic macro release or a company-wide earnings consensus update for the next session.

The main corporate developments available were concentrated in smaller companies. Uflex reported June-quarter revenue growth of 38% year-on-year to Rs 5,397 crore and normalized PAT growth of 630% year-on-year to Rs 423 crore; management cited the ramp-up of its Egypt production line and higher utilisation of Indian capacity as growth drivers. The available material does not provide a street consensus for comparison.

Juniper Hotels reported June-quarter revenue of Rs 250 crore, up 13% year-on-year, and profit of Rs 33 crore, up 270% year-on-year, with the report citing stronger revenue per available room at Grand Hyatt Mumbai and Andaz Delhi. TD Power Systems reported standalone June-quarter PAT of Rs 85 crore, up 81% year-on-year, and raised its FY27 revenue guidance to Rs 2,600 crore, with management saying the figure could be exceeded. No consensus estimates were available for these reports.

Sigma Advanced Systems disclosed a Rs 155 crore order from the Home Ministry. Separately, Paytm shares came under pressure after the reported block deal involving 3% of its equity. The available material does not identify the buyer or seller in that transaction.

Primary-market activity remained firm despite the weak secondary-market session. Sunshine Pictures opened its Rs 282 crore issue and saw rapid subscription, while Lalithaa Jewellery Mart's issue crossed full subscription on its second day. Horizon Industrial Parks was still below full subscription in the available update.

Milky Mist Dairy Food made its market debut at an 18% premium to the issue price after strong demand during its offering. Shankesh Jewellers also opened for subscription on August 18, with bidding scheduled to close on August 20. The material does not identify a separate bulk deal beyond the reported Paytm transaction.