Market braces for cautious start as oil stays elevated
GIFT Nifty:
GIFT Nifty August 2026 futures were down 21 points, suggesting a negative start for the Nifty 50 today.
RBI to close FCNR(B) forex swap facility window on 31 August:
The Reserve Bank of India (RBI) will close the window for mobilising foreign currency non-resident (bank) or FCNR(B) deposits under its special USD-INR forex swap facility on 31 August 2026, following strong forex inflows. As of 13 August, total inflows under the facility stood at $56.85 billion, including $52.30 billion through FCNR(B) deposits, $2.81 billion through OFCBs and $1.74 billion through ECBs. Swaps against eligible FCNR(B) deposits can be availed with the RBI until 11 September 2026, while the facility for ECBs and OFCBs will remain open until 31 December 2026.
Institutional Flows:
Foreign portfolio investors (FPIs) bought shares worth Rs 508.12 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 356.40 crore in the Indian equity market on 14 August 2026, according to provisional data.
FPIs bought shares worth Rs 11,198.70 crore in August so far, through 14 August 2026. This follows net cash purchases of Rs 6,731.97 crore in July 2026, while they were net sellers of Rs 53,957.90 crore in June 2026.
Global Markets:
Most Asian markets traded higher on Monday, although gains were tempered by renewed concerns over the Middle East conflict and elevated crude oil prices. Brent crude hovered around $89 a barrel as progress towards a US-Iran peace deal remained stalled and tanker traffic through the Strait of Hormuz stayed disrupted, keeping supply risks and inflation concerns in focus.
Japan's economy grew at an annualised 1.1% in the April-June quarter, slowing from the previous quarter and falling short of market expectations of 2%. GDP rose 0.3% quarter-on-quarter, also below the 0.5% expected by economists.
On Wall Street, US stocks ended lower on Friday after weaker-than-expected retail sales data raised concerns about consumer spending. The S&P 500 fell 0.17% to 7,785.76, the Nasdaq Composite declined 0.28% to 26,729.16 and the Dow Jones Industrial Average shed 0.20% to 53,732.41. Despite the decline, the S&P 500 posted its third consecutive weekly gain.
US inflation data released last week showed consumer prices rose 0.1% in July, while producer prices were unchanged. The softer inflation readings have reduced expectations of a near-term Federal Reserve rate hike, although investors remain focused on persistent inflation risks from higher energy prices. The minutes of the Fed's July meeting, due on Wednesday, will be closely watched for clues on the central bank's policy outlook.
Domestic Market:
Key benchmark indices pared sharp early losses on Friday as buying at lower levels helped limit the decline. The Nifty settled at 24,366 after recovering from the day's low of 24,296.80. The recovery was supported by positive global cues and a marginal strengthening of the rupee against the US dollar. A decline in India VIX also indicated easing near-term volatility and supported buying sentiment. Consumer durables stocks were in demand, while pharma, metal and cement stocks declined. The S&P BSE Sensex shed 70.71 points or 0.09% to 78,009.25. The Nifty 50 index fell 29.85 points or 0.12% to 24,366.
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