Nifty’s seven-session slide meets softer global yields and firmer Asian cues

Indian equities enter Thursday after a seventh consecutive session of losses, but the overnight backdrop is less adverse. Traders attributed Wednesday’s weakness to elevated crude prices, higher global bond yields and uncertainty linked to West Asia. The immediate market test this morning is whether softer US yields and firmer Asian markets can offset the pressure from oil and the recent run of selling.

Stock-specific moves shaped the session. HCL Technologies led the large-cap gainers as information-technology shares benefited from improved global bond-market conditions and a steadier US technology backdrop. JSW Steel, Sun Pharmaceutical, Eternal and Wipro were also among the Nifty gainers.

Power Grid, Max Healthcare, Coal India, ITC and Bajaj Finance were among the principal drags. The weakness in financial stocks was consistent with concern that a more cautious RBI inflation outlook could keep borrowing costs higher for longer. Power and energy shares also faced broad selling pressure amid elevated oil prices and geopolitical uncertainty.

The sector pattern points to a market that was reducing exposure to rate-sensitive and domestic cyclicals while seeking relative support in technology. Metals were little changed overall despite strength in JSW Steel, suggesting that company-specific gains did not fully offset the wider risk-off tone.

The RBI’s August monetary policy minutes kept the repo rate unchanged at 5.25% and retained a neutral stance, with the decision unanimous. The minutes nevertheless carried a more cautious inflation message. Governor Sanjay Malhotra and Deputy Governor Poonam Gupta indicated that rate increases remain possible if inflation risks intensify.

The RBI identified volatile oil prices, supply-chain pressures and higher food, fuel and input costs as risks to the inflation and growth outlook. The central bank projected FY27 real GDP growth at 6.7% and CPI inflation at 5.0%, with inflation expected to peak at 5.9% in the third quarter before moderating. The reported implication for markets is a narrower margin for near-term policy easing, although the minutes did not signal an immediate rate increase.

The RBI has also approved LIC’s request to raise its stake in HDFC Bank to 9.99% from 4.11%. The approval is relevant to the banking sector because it permits a substantially higher holding by India’s largest insurer, subject to applicable banking and investment rules. No fresh CPI, IIP, GST, trade or PMI print was identified in the material for this morning.

Wall Street finished higher after the US Treasury said it would double the size of liquidity-support buyback operations for longer-dated nominal coupon securities to at least $4 billion per operation from $2 billion. The announcement pulled long-dated Treasury yields lower and weakened the dollar, while gold moved higher.

Asian markets were reported higher in early trade, tracking the improvement in global bonds and the modest US equity rebound. The support is relevant to Indian technology shares because lower US yields can reduce pressure on global growth and technology valuations. The offset is crude: Brent remained above $90 a barrel as tensions involving the US, Iran and the Strait of Hormuz kept supply concerns in focus.

Foreign institutional investors were net buyers of Indian equities worth Rs 407.99 crore on August 19, according to provisional NSE data. Domestic institutional investors bought Rs 3,973.72 crore. The two-way support from domestic institutions and the second consecutive day of FII buying provided a counterweight to the market’s extended decline, but the scale of DII purchases also underlines the importance of domestic flows in absorbing foreign and macro-driven pressure.

RailTel received a Rs 166.80 crore work order from the Employees’ Provident Fund Organisation for a one-year extension of its infrastructure-as-a-service contract, with execution due by February 9, 2027. The company reported first-quarter FY27 standalone revenue of Rs 893.27 crore, up 20.09% year-on-year from Rs 743.83 crore, while standalone net profit fell 0.48% year-on-year to Rs 65.78 crore from Rs 66.10 crore. No consensus estimate was provided in the material, so the result cannot be assessed against a street expectation.

XtraNet Technologies reported first-quarter consolidated profit of Rs 6.04 crore, up 77.9% year-on-year from Rs 3.4 crore, while revenue rose 10.5% year-on-year to Rs 50.5 crore from Rs 45.7 crore. Lohia Corp reported first-quarter consolidated profit of Rs 66.3 crore, compared with Rs 16.9 crore a year earlier, and revenue of Rs 503 crore, compared with Rs 315.4 crore. The reported comparisons are against the year-ago quarter; no market consensus was available.

Other order-related disclosures included a Rs 134 crore work order for Krystal Integrated Services from Maharashtra State Road Transport Corporation, a Rs 128 crore order for Interarch Building Solutions from an international FMCG company, and a Letter of Intent for HG Infra Engineering covering substations and transmission lines in Uttar Pradesh. These announcements matter mainly at the company level; their contribution to consolidated earnings was not provided.

The primary market remains active even as the secondary market has weakened. Tempsens Instruments India is scheduled to open its Rs 650 crore issue on August 20. Sunshine Pictures and Shankesh Jewellers are scheduled to close their issues the same day, while Gaja Alternative Asset Management remains open through August 21.

Shiprocket listed on August 19 after its Rs 1,617 crore IPO was subscribed 99.38 times. Behari Lal Engineering also made its debut after raising Rs 302 crore through its IPO; the issue was subscribed 108.44 times. The strong demand and debuts provide a separate signal of appetite for new issues, although the material does not establish how this demand affects broader secondary-market liquidity.

The principal reported block activity was L&T’s purchase of Nxt-Infra Trust units for Rs 199 crore, matched by a sale of more than 2.10 crore units by A K Capital Finance. No additional block or bulk deal of comparable significance was identified in the available material.