Markets trade under pressure in early deals amid weak global cues

Indian markets made negative start on Tuesday and soon magnify their losses in early deals amid uncertainty over the reopening of the Strait of Hormuz. President Donald Trump said that the United States will seek compensation from Iran for casualties in the war. The move came days after Tehran demanded that Washington pay for damages from the five-month conflict as a condition for reopening the Strait of Hormuz. There was some cautiousness as the Ministry of Statistics & Programme Implementation (MoSPI) said the pace of joblessness as well as the ratio of workers' population in India stayed almost flat year-on-year during the April-June quarter of this fiscal, reflecting no sign of expansion or contraction in the country's job market.

Both, Sensex and Nifty were trading lower with around half a percent cut in early deals amid selling pressure in index-heavyweights. However, buying in IT and Metal stocks limited the downside. Also, some support came amid foreign fund inflows. Foreign institutional investors (FIIs) extended their buying streak on August 10, purchasing Indian equities worth Rs 1,974.76 crore.

On the global front, Asian markets were trading mixed as investors assessed the implications of higher oil prices and the global inflation outlook. Investors are also awaiting the U.S. July consumer price inflation data, which could influence expectations around the Federal Reserve’s interest-rate trajectory.

The BSE Sensex is currently trading at 78150.01, down by 392.43 points or 0.50% after trading in a range of 78145.25 and 78509.77. There were 8 stocks advancing against 22 stocks declining on the index.

The top gaining sectoral indices on the BSE were IT up by 0.52%, Metal up by 0.48%, Consumer Durables up by 0.29%, Auto up by 0.20% and Consumer Discretionary up by 0.14%, while Bankex down by 0.81%, Capital Goods down by 0.77%, Power down by 0.72%, Industrials down by 0.55% and FMCG down by 0.51% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 1.23%, HCL Technologies up by 1.07%, Infosys up by 0.67%, Tech Mahindra up by 0.64% and Bajaj Finserv up by 0.35%. On the flip side, Interglobe Aviation down by 1.60%, Axis Bank down by 1.46%, Ultratech Cement down by 1.35%, Bharti Airtel down by 1.23% and Eternal down by 1.05% were the top losers.

Meanwhile, with an aim to strengthen bilateral trade, India and the five-member Southern African Customs Union (SACU) - Botswana, Eswatini, Lesotho, Namibia and South Africa - are likely to sign the terms of reference (ToRs) on August 12, 2026, to begin negotiations for a preferential trade agreement (PTA). On the sidelines of the BRICS trade and industry ministers’ meeting, Commerce and Industry Minister Piyush Goyal met South Africa’s Trade, Industry and Competition Minister Parks Tau. Goyal said the two sides discussed signing the ToRs, concluding negotiations early, strengthening bilateral trade and exploring cooperation in critical minerals, pharmaceuticals and manufacturing. In 2008, the two sides held negotiations for a proposed pact, but the talks were stuck due to market access issues.

South Africa is India’s largest trading partner in the group. Bilateral trade fell 13.55% to $15.56 billion in 2025-26 from $18 billion in 2024-25, with India recording a trade deficit of $1.55 billion. India’s key exports include vehicles and components, pharmaceuticals, engineering goods, chemicals, textiles, rice, and gems and jewellery, while major imports include gold, coal, copper ore, phosphoric acid, manganese ore and aluminium. Trade with Botswana rose 21.26% to $614 million in 2025-26 from $506.33 million in 2024-25, with India recording a $278.94 million trade deficit. Diamonds remain the major commodity, while India sees export opportunities in pharmaceuticals, medical devices, tyres, agricultural equipment, digital technology and textiles.

Trade with Namibia increased 4.32% to $593 million in 2025-26 from $568.4 million in 2024-25, giving India a $105.24 million trade surplus. Mining, particularly uranium, diamonds, copper and phosphates, is a key area of mutual interest, alongside pharmaceuticals, IT, renewable energy and SMEs. Trade with Eswatini declined 54.6% to $23.69 million in 2025-26 from $52.18 million in 2024-25. Major Indian imports include iron and steel, oil and seeds, and fruits, while exports include pharmaceuticals, rubber, plastic and machinery. Trade with Lesotho fell 25% to $8.47 million in 2025-26 from $11.28 million in 2024-25. Major Indian imports include iron and steel, oil and seeds, and fruits, while exports include pharmaceuticals, rubber, plastic and machinery.

The CNX Nifty is currently trading at 24472.15, down by 111.65 points or 0.45% after trading in a range of 24464.10 and 24576.85. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 1.41%, Titan Company up by 1.36%, Bajaj Auto up by 1.31%, HCL Technologies up by 1.02% and ONGC up by 1.01%. On the flip side, Max Healthcare down by 2.04%, Tata Consumer Products down by 1.90%, Apollo Hospital down by 1.67%, Interglobe Aviation down by 1.51% and Axis Bank down by 1.36% were the top losers.

Asian markets were trading mixed; Hang Seng declined 158.49 points or 0.61% to 25,779.00, Jakarta Composite plunged 52.52 points or 0.83% to 6,312.85 and Shanghai Composite weakened 1.8 points or 0.05% to 3,964.79. On the other hand, Taiwan Weighted surged 94.56 points or 0.21% to 45,023.32, KOSPI rose 84.35 points or 1.34% to 6,384.01 and Straits Times was up by 46.7 points or 0.82% to 5,745.13.