Nifty may open higher after six-session slide; global cues remain weak
GIFT Nifty:
GIFT Nifty August 2026 futures were up 30.50 points, indicating a mildly positive start for the Nifty 50, with bargain buying after six consecutive sessions of losses. However, weak Asian markets, elevated US bond yields, higher crude prices and persistent Middle East tensions could limit gains.
Institutional Flows:
Foreign portfolio investors (FPIs) bought shares worth Rs 1,651.53 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,579.31 crore in the Indian equity market on 18 August 2026, according to provisional data.
FPIs bought shares worth Rs 11347.65 crore in August so far, through 18 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:
Asian indices traded lower on Wednesday after a sharp selloff in US technology and semiconductor stocks, while elevated Treasury yields and rising oil prices added to pressure on risk assets. Investors scaled back exposure to richly valued growth stocks as higher borrowing costs, inflation concerns and geopolitical tensions clouded the outlook.
South Korea's KOSPI fell more than 5%, with semiconductor heavyweights SK Hynix and Samsung Electronics tumbling sharply. The sharp decline triggered a temporary halt on program selling, known as a sidecar, designed to provide a brief pause when markets experience sharp moves.
Rising bond yields added to the pressure. The US 30-year Treasury yield climbed to around 5.3%, its highest level since 2007, while the 10-year yield approached 4.72%. Higher long-term yields increase the discount rate applied to future corporate earnings, putting pressure on richly valued growth and technology stocks.
The semiconductor selloff also reflected growing caution over valuations across the AI trade and the scale of investment in AI infrastructure. The Philadelphia Semiconductor Index fell 5% on Tuesday, with Nvidia, Micron Technology and other chip-related stocks among the major decliners.
Higher oil prices added to inflation concerns. Brent crude was trading around $91-$92 a barrel on Wednesday as uncertainty over crude exports through the Strait of Hormuz persisted amid escalating tensions between the US and Iran.
Investors will also focus on minutes from the US Federal Reserve's July meeting, due on Wednesday, for clues on policymakers' thinking. The release comes as Fed Chair Kevin Warsh has adopted a more limited communication approach.
US stocks ended lower on Tuesday, led by losses in semiconductor and technology shares as rising Treasury yields and Middle East tensions weighed on sentiment.
The Dow Jones Industrial Average declined 116.38 points, or 0.22%, to 53,343.40, while the S&P 500 dropped 53.30 points, or 0.69%, to 7,691.76. The Nasdaq Composite fell 355.20 points, or 1.33%, to 26,289.71.
Domestic Market:
Key benchmark indices extended their losses on Tuesday, with the Nifty falling for the sixth consecutive session, while the Sensex declined for the third straight day. Sentiment was weighed down by Brent crude rising above $91 a barrel amid renewed US-Iran tensions. Weak global cues, continued FII selling, higher US bond yields and a weaker rupee further weighed on sentiment. The Nifty remained under pressure amid volatility ahead of the weekly Nifty 50 derivatives expiry and settled below the 24,200 level. IT stocks witnessed selling, while pharma, auto and oil & gas were the only major sectors to gain.
The S&P BSE Sensex dropped 492.70 points or 0.63% to 77,235.46. The Nifty 50 index lost 132.75 points or 0.55% to 24,154.90. The Sensex declined 1.08% over three consecutive trading sessions, while the Nifty fell 1.74% over six consecutive trading sessions.
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