SGX Nifty August 2026 futures increased by 30.50 points, suggesting a slightly optimistic opening for the Nifty 50, driven by opportunistic purchasing following six straight days of declines. However, subdued performance in Asian markets, heightened US bond yields, increased crude prices, and ongoing tensions in the Middle East may constrain potential gains.
Institutional Flows:
Foreign portfolio investors acquired shares valued at Rs 1,651.53 crore, whereas domestic institutional investors recorded net purchases amounting to Rs 2,579.31 crore in the Indian equity market on 18 August 2026, as per provisional data. Foreign Portfolio Investors have acquired shares valued at Rs 11,347.65 crore in August up to the 18th, 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 experienced a decline on Wednesday, following a significant selloff in US technology and semiconductor stocks. Concurrently, elevated Treasury yields and increasing oil prices contributed to the pressure on risk assets. Investors reduced their exposure to high-valuation growth stocks as elevated borrowing costs, inflation apprehensions, and geopolitical uncertainties obscured the economic outlook. South Korea’s KOSPI experienced a decline exceeding 5%, as semiconductor giants SK Hynix and Samsung Electronics faced significant drops. 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. Increasing bond yields contributed to the mounting pressure. The US 30-year Treasury yield rose to approximately 5.3%, marking its highest point since 2007, while the 10-year yield neared 4.72%.
Higher long-term yields elevate the discount rate utilised for future corporate earnings, exerting pressure on growth and technology stocks that are richly valued. The semiconductor selloff also reflected increasing apprehension regarding valuations within the AI sector and the magnitude of investment in AI infrastructure. The Philadelphia Semiconductor Index experienced a decline of 5% on Tuesday, with Nvidia, Micron Technology, and other chip-related stocks ranking among the principal decliners. Increased oil prices have exacerbated inflationary pressures. Brent crude was trading around $91-$92 a barrel on Wednesday, reflecting ongoing uncertainty regarding crude exports through the Strait of Hormuz, which is exacerbated by rising tensions between the US and Iran. Investors will also concentrate on the minutes from the US Federal Reserve’s July meeting, scheduled for release on Wednesday, for insights into policymakers’ perspectives.
The release comes as Fed Chair Kevin Warsh has adopted a more constrained communication strategy. US stocks concluded the trading session on Tuesday with a decline, primarily driven by setbacks in semiconductor and technology sectors. The upward movement in Treasury yields, coupled with escalating tensions in the Middle East, contributed to a negative sentiment in the market. The Dow Jones Industrial Average experienced a decline of 116.38 points, representing a decrease of 0.22%, settling at 53,343.40. Concurrently, the S&P 500 fell by 53.30 points, equivalent to a 0.69% drop, closing at 7,691.76. The Nasdaq Composite declined by 355.20 points, representing a decrease of 1.33%, closing at 26,289.71.
Domestic Market:
Key benchmark indices continued their downward trajectory on Tuesday, with the Nifty experiencing a decline for the sixth consecutive session, while the Sensex recorded a decrease for the third straight day. Sentiment was negatively impacted as Brent crude surpassed $91 a barrel, reflecting heightened tensions between the US and Iran. Weak global cues, ongoing foreign institutional investor selling, elevated US bond yields, and a depreciating rupee have collectively dampened market sentiment. The Nifty experienced downward pressure amid fluctuations in the market ahead of the weekly Nifty 50 derivatives expiry, ultimately closing below the 24,200 threshold.
IT stocks experienced a decline, whereas the pharmaceutical, automotive, and oil & gas sectors emerged as the sole major beneficiaries, recording gains. The S&P BSE Sensex experienced a decline of 492.70 points, representing a decrease of 0.63%, closing at 77,235.46. The Nifty 50 index experienced a decline of 132.75 points, reflecting a decrease of 0.55%, closing at 24,154.90. The Sensex experienced a decline of 1.08% over three consecutive trading sessions, whereas the Nifty recorded a decrease of 1.74% over six consecutive trading sessions.
