Indian equity benchmarks continued their sluggish trade in morning session, with Sensex and Nifty dropping around a percent, as crude oil prices surged above the $100 per barrel mark and U.S. bond yields jumped to their highest levels in nearly two decades, raising the possibility of another interest-rate hike from the Federal Reserve this year. Selling in Banking and Telecom stocks and weak trends in global markets also dented markets' sentiment. Traders overlooked the Reserve Bank of India’s (RBI) Deputy Governor Poonam Gupta statement that there is a fair case for the rupee to not just stabilise but even appreciate from current levels, as the currency's 13.1 per cent depreciation over the past one-and-a-half years appears to be a temporary phenomenon. On the global front, Asian markets were trading mostly in red following the broadly negative cues from Wall Street overnight, as a rebound in crude oil prices and surging bond yields renewed global inflation risks and interest rate hike concerns amid uncertainty in the resolution of the Middle East conflict and the reopening of the critical Strait of Hormuz.
The BSE Sensex is currently trading at 74084.46, down by 743.79 points or 0.99% after trading in a range of 74054.15 and 74362.29. There were 3 stocks advancing against 27 stocks declining on the index.
The lone gaining sectoral index on the BSE was Realty up by 0.61%, while Bankex down by 1.71%, Telecom down by 1.10%, Power down by 0.92%, Metal down by 0.88% and Utilities down by 0.85% were the top losing indices on BSE.
The few gainers on the Sensex were Tech Mahindra up by 0.50%, Sun Pharma up by 0.09% and Eternal up by 0.03%. On the flip side, Bajaj Finance down by 4.06%, Axis Bank down by 3.92%, Bajaj Finserv down by 3.13%, Interglobe Aviation down by 1.59% and HDFC Bank down by 1.38% were the top losers.
Meanwhile, a survey by the Retail Association of India (RAI) has said that India’s retail sector maintained a steady trajectory in August 2026, registering a 10 per cent year-on-year (Y-o-Y) growth across the country. It said building on July's strong recovery, stable consumer demand across key regions and categories indicates strong industry preparation for the upcoming festive peak. It said, for August 2026, regional sales growth remained consistent across the country at 10 per cent, led by an 11 per cent growth in West India, which outperformed other zones. South India followed closely at 10 per cent, matching the national average while East India and North India delivered stable growth trajectories during the month, registering 8 per cent and 9 per cent growth, respectively.
It stated that essential and routine categories remained the key drivers of growth, led by quick service restaurants (QSRs) at 15 per cent, while food and grocery grew by 12 per cent in the previous month. Lifestyle segments such as apparel (10 per cent) and footwear (8 per cent) maintained steady expansion, whereas consumer durables and electronics stabilised around 7 per cent, following an earlier peak in April. It said growth had softened after April, when it stood at 7 per cent, dipping to a low of 5 per cent in May. It has climbed every month since, with June registering 6 per cent, July seeing 8 per cent, and 10 per cent in August.
Kumar Rajagopalan, Executive Director and CEO at RAI, said ‘While momentum softened following April, we have seen a clear and encouraging rebound since July. August's strong performance serves as a promising prelude to the upcoming festive season, and our focus now turns to precise execution and inventory planning to capture seasonal demand’. He added while India's internal consumption story remains resilient, RAI maintain a measured and cautious approach in light of broader global macroeconomic conditions.
The CNX Nifty is currently trading at 23210.55, down by 236.25 points or 1.01% after trading in a range of 23196.45 and 23281.95. There were 6 stocks advancing against 44 stocks declining on the index.
The top gainers on Nifty were Tech Mahindra up by 0.19%, SBI Life Insurance up by 0.17%, Cipla up by 0.14%, Grasim Industries up by 0.04% and Titan Company up by 0.04%. On the flip side, HDFC Life Insurance down by 6.32%, Bajaj Finance down by 4.57%, Axis Bank down by 3.65%, Bajaj Finserv down by 3.12% and Hindalco Industries down by 1.87% were the top losers.
Asian markets were trading mostly in red; Taiwan Weighted lost 245.55 points or 0.51% to 47,911.74, Jakarta Composite plunged 64.23 points or 1.01% to 6,310.68, Shanghai Composite weakened 29.97 points or 0.76% to 3,906.55, Hang Seng declined 143.12 points or 0.58% to 24,691.00 and Straits Times fell 6.34 points or 0.11% to 5,703.57.
On the flip side, Nikkei 225 surged 858.05 points or 1.32% to 65,877.00.
