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Key gauges end lower amid uncertainty over reopening of Strait of Hormuz
Aug-11-2026

Indian equity benchmarks ended lower on Tuesday on continuing concerns over the conflict in the Middle East and the resulting spike in crude oil prices. Iran has warned it will not reopen the Strait of Hormuz unless the U.S. meets a series of preconditions, including compensation, lifting of sanctions, and an end to military threats. Traders also braced for economic data from India and the U.S. for fresh signals on the rate path.

Both Sensex and Nifty ended lower by around 0.5 per cent, amid broad-based selling across sectors, with banking and financial stocks emerging as the key drags. However, gains in IT heavyweights and renewed foreign portfolio inflows helped limit the losses and provided some support to the broader market. 

Some of the important factors in trade: 

India’s growth to slow down to 6.6% in FY27 amid high inflation: Fitch Group company BMI, in its report on Asia-Pacific, has projected that India’s growth to slow to 6.6 per cent in FY27, from 7.7 per cent in FY 2025-26 (April-March), as the boost to the economy from last year’s GST reforms wanes and inflation remains elevated, averaging 5.4 per cent.  

Govt raises Rs 45,306 crore disinvestment, asset monetisation in FY26: The Minister of State for Finance Pankaj Chaudhary has informed that the government's combined mop-up from disinvestment and asset monetisation stood at Rs 45,306 crore in the financial year 2025-26 (FY26), exceeding the Revised Estimates. 

India's unemployment rate stays almost flat in April-June: 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.

India, South Africa-led SACU set to restart trade negotiations: 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).

Global front: European markets were trading mostly in red amid fading hopes for a deal between Washington and Tehran to reopen the Strait of Hormuz. Asian markets ended mostly lower as investors braced for key U.S. inflation readings due this week for direction.  

Finally, the BSE Sensex fell 388.19 points or 0.49% to 78,154.25 and the CNX Nifty was down by 112.10 points or 0.46% to 24,471.70. 

The BSE Sensex touched high and low of 78,509.77 and 78,048.26, respectively. There were 5 stocks advancing against 25 stocks declining on the index.

The top gaining sectoral indices on the BSE were IT up by 0.37%, Healthcare up by 0.34%, Energy up by 0.10%, Consumer Discretionary up by 0.07% and Oil & Gas up by 0.05%, while Realty down by 1.03%, FMCG down by 0.87%, Basic Materials down by 0.80%, Utilities down by 0.69% and Power down by 0.54% were the top losing indices on BSE.

The top gainers on the Sensex were Eternal up by 2.01%, Infosys up by 0.46%, Titan Company up by 0.33%, HCL Technologies up by 0.29% and TCS up by 0.25%. On the flip side, Ultratech Cement down by 2.75%, Axis Bank down by 1.52%, Interglobe Aviation down by 1.50%, Bharti Airtel down by 1.44% and Bajaj Finance down by 1.04% 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.

CNX Nifty touched high and low of 24,576.85 and 24,429.25, respectively. There were 13 stocks advancing against 37 stocks declining on the index. 

The top gainers on Nifty were Dr. Reddy's Labs. up by 3.99%, Eternal up by 2.50%, TCS up by 0.82%, Titan Company up by 0.75% and Infosys up by 0.65%. On the flip side, Tata Consumer Products down by 2.77%, Max Healthcare down by 2.71%, Nestle India down by 2.32%, Ultratech Cement down by 2.14% and Apollo Hospital down by 1.81% were the top losers. 

European markets were trading mostly in red; UK’s FTSE 100 decreased 1.84 points or 0.02% to 10,860.66 and France’s CAC fell 9.73 points or 0.11% to 8,716.30, while Germany’s DAX gained 6.32 points or 0.02% to 26,330.20.

Asian markets ended mostly lower on Tuesday tracking Wall Street’s overnight fall amid uncertainty over the Iran deal to reopen the Strait of Hormuz and surging Brent oil prices, while investors braced for key US inflation readings due this week for direction. US President Donald Trump dismissed Iran's demand that the US pay for devastation caused by five months of war as one condition for reopening the strait. Chinese markets declined even while Shanghai IPO newcomer Guoyi jumped 419% on its debut. South Korea’s Kospi rose, driven by strong buying among chip stocks such as Samsung Electronics gaining 4.13%. Meanwhile, Japanese market was closed for Mountain Day.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,934.09

-32.50

-0.82

Hang Seng

25,652.82

-284.67

-1.10

Jakarta Composite

6,267.88

-97.49

-1.56

KLSE Composite

1,731.46

-3.91

-0.23

Nikkei 225

--

--

--

Straits Times

5,754.17

55.74

0.98

KOSPI Composite

6,345.53

45.87

0.73

Taiwan Weighted

45,120.72

191.96

0.43
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