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EQUITY
Key gauges end lower on Wednesday
Aug-26-2026

Indian equity benchmarks erased all morning gains and ended lower on Wednesday as investors took a cautious approach ahead of release of US inflation data, due later in the day, which could provide clues about Federal Reserve’s interest rate trajectory. Traders also assessed the development in West Asia. 

The BSE Sensex closed with losses of over 0.20% with weakness in TECK, Telecom and IT stocks offsetting gains in Metal and Basic Materials stocks. Similarly, the Nifty 50 ended over half percent lower amid profit-taking at higher levels and selling in IT shares. Meanwhile, exchange data showed Foreign institutional investors (FIIs) remained net buyers in Indian equities for the second straight session on Tuesday, purchasing shares worth Rs 1,593.53 crore. 

Some of the important factors in trade:

Goyal pitches India as trusted destination for data centres, cites $200 billion investment commitments: Commerce and Industry Minister Piyush Goyal has pitched India as a compelling destination for data centres, saying the country can work with Japanese companies to develop the sector and has already received investment commitments of about $200 billion from large hyperscalers globally.

Domestic economy demonstrates notable resilience to ongoing global headwinds: The ‘State of the Economy’ article featured in the Reserve Bank of India’s (RBI) August 2026 Bulletin observed a divergence between external and domestic economic environment, stating that the global economy is confronting a fragile geopolitical environment and continuing trade-related uncertainties. Nevertheless, the domestic economy has demonstrated notable resilience to the ongoing global headwinds, characterised by buoyant domestic demand, and rising manufacturing and services activity.

RBI's proposal to prohibit NBFCs’ revolving credit may disrupt MSME working-capital funding: The Federation of Indian Micro and Small and Medium Enterprises (FISME) has flagged concerns over Reserve Bank of India’s (RBI) proposal to prohibit Non-Banking Financial Companies (NBFCs) from . providing revolving credit.

Infrastructure projects face around Rs 3.40 lakh crore cost overrun: The Ministry of Statistics and Programme Implementation (MoSPI) in its monthly report for July 2026 has said that Infrastructure projects costing over Rs 150 crore each have collectively reported cost overruns of around Rs 3,40,504 crore. 

Global front: European markets were trading mostly in green as weak oil prices amid renewed optimism over Middle East peace efforts and the reopening of the Strait of Hormuz aided sentiment. Asian markets ended mostly higher amidst a decline in crude oil prices as well as a surge in tech stocks.

Finally, the BSE Sensex fell 183.15 points or 0.24% to 77,472.94 and the CNX Nifty was down by 126.80 points or 0.52% to 24,207.75.  

The BSE Sensex touched high and low of 77,986.84 and 77,472.94, respectively. There were 13 stocks advancing against 17 stocks declining on the index.   

The top gaining sectoral indices on the BSE were Metal up by 1.38%, Basic Materials up by 1.37%, Healthcare up by 0.42%, Bankex up by 0.40% and PSU up by 0.13%, while TECK down by 1.46%, Telecom down by 1.35%, IT down by 1.05%, Utilities down by 0.65% and Consumer Durables down by 0.60% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 3.53%, Ultratech Cement up by 1.87%, Axis Bank up by 1.33%, Tata Steel up by 1.10% and Bajaj Finserv up by 0.70%. On the flip side, Infosys down by 1.94%, Bharti Airtel down by 1.91%, Larsen & Toubro down by 1.76%, Power Grid down by 1.48% and Tech Mahindra down by 1.38% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has pitched India as a compelling destination for data centres, and said that the country can work with Japanese companies to develop the sector. He added that India has already received investment commitments of about $200 billion from major hyperscalers globally. During his meeting with Japanese Minister of Economy, Trade and Industry Akazawa Ryosei, Goyal said the partnership could be summarised around four pillars: increasing trade, strengthening technology cooperation, boosting investments and promoting tourism.

Between October and December 2025, Google announced a $15 billion investment, Microsoft $17.5 billion, Amazon $35 billion and Digital Connexion $11 billion in AI infrastructure, including data centres, in India. The government has proposed boosting investments in the data centre segment by offering a tax holiday until 2047. Goyal also informed the Japanese minister about his interactions with representatives of several top Japanese companies, who showed tremendous interest in expanding cooperation with India.

Separately, Goyal said Japan has significant demand for caregivers, nurses, plumbers, electricians, masons, carpenters and drivers, as well as highly skilled professionals such as AI specialists, PhDs, engineers and chartered accountants. He suggested that the community encourage people to learn the Japanese language. He added that remittances from Japan to India contribute to the country's growth. There are more than 60,000 people in the Indian diaspora in Japan.

CNX Nifty touched high and low of 24,378.60 and 24,207.75, respectively. There were 14 stocks advancing against 36 stocks declining on the index. 

The top gainers on Nifty were Kotak Mahindra Bank up by 3.76%, Axis Bank up by 1.62%, JSW Steel up by 1.57%, Ultratech Cement up by 1.53% and HDFC Life Insurance up by 1.15%. On the flip side, Bharti Airtel down by 2.31%, Power Grid down by 2.14%, Infosys down by 2.10%, Larsen & Toubro down by 1.96% and Nestle India down by 1.86% were the top losers. 

European markets were trading mostly in green; France’s CAC rose 35.4 points or 0.42% to 8,474.60 and Germany’s DAX gained 52.36 points or 0.2% to 26,318.50, while UK’s FTSE 100 decreased 19.97 points or 0.18% to 10,866.19.

Asian markets ended mostly higher on Wednesday tracking a sharp fall in crude oil prices and a drop in bond yields, amid hopes that the vital Strait of Hormuz could soon reopen. Iran said it had restarted talks with Oman on managing the Strait. The Shanghai Composite gained as investors eagerly awaited developments from the ongoing meeting of the National People’s Congress Standing Committee. However, traders were reluctant to make significant bets ahead of key events in the coming days, including key U.S. inflation data and U.S. Fed Chair Kevin Warsh’s debut speech at the annual Jackson Hole conference. Investors also awaited another pivotal earnings report from AI heavyweight Nvidia. On the economic data front, Singapore’s manufacturing production grew by 6.8% year-on-year in July 2026, slightly below market forecasts for a 6.9% gain, but easing from a 7.5% rise in June. Meanwhile, South Korea’s manufacturing Business Survey Index fell to 81 points in August 2026 from 82 in July, indicating a continued deterioration in business conditions.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,912.52

23.08

0.59

Hang Seng

25,652.97

141.87

0.56

Jakarta Composite

6,405.68

-95.99

-1.48

KLSE Composite

1,748.54

12.21

0.70

Nikkei 225

66,262.16

405.73

0.62

Straits Times

5,721.59

-14.09

-0.25

KOSPI Composite

6,808.21

65.47

0.97

Taiwan Weighted

45,832.62

663.16

1.47
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