Key indices end lower on renewed West Asia tensions

Indian equity benchmarks ended lower on Monday following weak global market cues, as investors remained cautious after the fresh escalation in the US-Iran war and subsequent rising in crude oil prices. Foreign fund outflows along with the renewed fears of interest rate hike by the US Federal Reserve also dented investors' sentiment. 

Both the indices, Sensex and Nifty, closed in negative territory weighed down by selling pressure in Utilities, Metal and Basic Materials stocks. Gains in Banking and Auto stocks helped cushion the decline. Adani Enterprises, Adani Ports & SEZ and ITC emerged as the biggest losers on the Nifty index, dragging the benchmark lower. 

Some of the important factors in trade: 

India remained resilient despite global turmoil: Finance Minister Nirmala Sitharaman said India has remained resilient amid global uncertainties by continuously monitoring developments abroad while keeping the country’s own requirements in focus. 

Industrial growth of India falls to 6.7% in July: The Ministry of Statistics and Programme Implementation (MoSPI) in its quick estimates has shown that industrial growth fell to 6.7 percent in the month of July 2026 (Base 2022-23=100) from a revised growth of 8.8 percent in June 2026 amid contraction in mining activity and slowdown in manufacturing growth.

Argentina commits to easing entry barriers for Indian pharmaceutical sector: The Commerce Ministry has said that Argentina has committed to easing barriers to facilitate entry of Indian pharmaceutical sector in the South American nation. 

India, Uzbekistan to elevate ties to comprehensive strategic partnership: Aiming to deepen bilateral relations, India and Uzbekistan have decided to elevate their ties to a comprehensive strategic partnership across trade, economy and investment, transport connectivity, digital transformation (IT, AI, space, cybersecurity), energy transition, critical minerals, food security, healthcare, pharmaceuticals and education. 

Global front: European markets were trading lower amid escalating tensions between Washington and Tehran around the Strait of Hormuz. Asian markets ended mixed as renewed Middle East tensions and Fed Chair Kevin Warsh's hawkish Jackson Hole remarks in the face of rising inflation risks sapped investors' appetite for risk. 

Finally, the BSE Sensex fell 307.24 points or 0.40% to 76,957.27 and the CNX Nifty was down by 95.25 points or 0.39% to 24,080.40.    

The BSE Sensex touched high and low of 77,177.27 and 76,751.32, respectively. There were 10 stocks advancing against 20 stocks declining on the index.    

The few gaining sectoral indices on the BSE were Bankex up by 0.36% and Auto up by 0.04%, while Utilities down by 2.64%, Metal down by 2.42%, Basic Materials down by 1.52%, TECK down by 1.41% and Power down by 1.31% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 1.87%, ICICI Bank up by 1.74%, Axis Bank up by 1.50%, State Bank Of India up by 1.33% and Bajaj Finserv up by 1.02%. On the flip side, Adani Ports & SEZ down by 4.11%, ITC down by 3.67%, Bharti Airtel down by 2.76%, HDFC Bank down by 1.53% and Infosys down by 1.50% were the top losers.

Meanwhile, the Commerce Ministry has said that Argentina has committed to easing barriers to facilitate entry of Indian pharmaceutical sector in the South American nation. The move is expected to provide greater opportunities for Indian pharmaceutical companies and contribute to improving access to quality and affordable healthcare in Argentina.

It stated ‘Argentina has committed to work towards upgrading India from Annex II to Annex I under its pharmaceutical regulatory framework and reducing barriers to entry.’ The issue came up for discussions during the visit of Commerce Secretary Rajesh Agarwal to Buenos Aires. 

He was in the country for the India-Argentina Joint Trade Committee (JTC), which was held on August 24, 2026 at Palacio San Martín, Buenos Aires. Bilateral trade between India and Argentina crossed $6.5 billion in 2025, registering consistent annual growth of over 17 per cent.

CNX Nifty touched high and low of 24,128.70 and 23,993.60, respectively. There were 20 stocks advancing against 30 stocks declining on the index. 

The top gainers on Nifty were Sun Pharma up by 3.37%, Nestle India up by 2.88%, Axis Bank up by 2.77%, Max Healthcare up by 2.76% and Grasim Industries up by 2.46%. On the flip side, Adani Enterprises down by 9.76%, Adani Ports & SEZ down by 6.70%, ITC down by 3.95%, Bharti Airtel down by 3.75% and Tata Motors Passenger down by 3.30% were the top losers. 

European markets were trading lower; UK’s FTSE 100 decreased 0 points or 0% to 10,824.26, France’s CAC fell 1.18 points or 0.01% to 8,400.00 and Germany’s DAX lost 199.49 points or 0.75% to 26,370.50.

Asian markets ended mixed on Monday amid renewed Middle East tensions after US forces struck Iranian rocket launchers on Larak Island in the Strait of Hormuz, triggering immediate Iranian attacks on American forces stationed in Jordan. Meanwhile, Federal Reserve Chair Kevin Warsh's hawkish Jackson Hole remarks in the face of rising inflation risks dampened investors' appetite for risk. Chinese market gained as the latest data showed China’s Manufacturing PMI ticked up to 49.8 in August, beating expectations of 49.7 and improving from July's 49.2, while the Non-Manufacturing PMI held steady at 49. South Korea’s Kospi surged on expectations of robust semiconductor export growth. Malaysian market remained closed on account of National Day holiday.