SGX Nifty August 2026 futures increased by 34 points, suggesting a slightly optimistic opening for the Nifty 50.
Institutional Flows:
On 20 August 2026, foreign portfolio investors divested shares amounting to Rs 583.36 crore, whereas domestic institutional investors recorded net purchases totalling Rs 3,537.71 crore in the Indian equity market, as per provisional data. Foreign Portfolio Investors acquired shares valued at Rs 14,399.76 crore in August up to 20 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 stocks exhibited a predominantly upward trend on Friday, in contrast to the significant selloff observed on Wall Street the previous nite. However, sentiment remained cautious as Brent crude climbed above $93 a barrel amid unresolved US-Iran tensions, which kept inflation concerns elevated. In Japan, core consumer inflation increased to 1.8% year-on-year in July, up from 1.6% in June, representing the quickest rate of growth since January. Underlying inflation, excluding fresh food and energy, rose by 1.9%, while headline inflation similarly increased by 1.9%. The stronger inflation data bolstered expectations that the Bank of Japan may increase interest rates as early as its September meeting.
On Thursday, Wall Street experienced a significant downturn, with the Dow Jones Industrial Average decreasing by 1.32%, the S&P 500 dropping by 0.87%, and the Nasdaq Composite retreating by 1%, as Treasury yields continued their upward trajectory. The 10-year US Treasury yield increased to approximately 4.70%, whereas the 30-year yield reached 5.25%. Walmart shares experienced a decline of 9.2% following a slowdown in US comparable sales growth, which registered at 2.6% for the second quarter, falling short of market expectations. This downturn was influenced by elevated fuel prices impacting consumer spending. Investors will now focus on the Federal Reserve’s policy outlook and the forthcoming Jackson Hole Economic Policy Symposium scheduled for 27-29 August.
Domestic Market:
Key equity benchmarks experienced a notable recovery on Thursday, as the Nifty ended a seven-session decline and regained the 24,200 mark, while the Sensex surged by more than 600 points. The recovery was bolstered by a decline in US Treasury yields following the announcement from the US Treasury regarding plans to double its buybacks of longer-duration government debt. This development has contributed to stabilising global bond markets and enhancing risk appetite. Purchasing activity was widespread, primarily driven by sectors such as information technology, financial services, real estate, and media, with the overall market also concluding on an upward trajectory. The rupee halted its three-day decline, concluding at 95.71 per dollar.
Technically, the Nifty encounters an immediate obstacle at 24,290-24,320, whereas 24,130-24,100 constitutes a significant support area. The S&P BSE Sensex experienced an increase of 628.04 points, reflecting a rise of 0.82%, reaching a level of 77,537.72. The Nifty 50 index experienced an increase of 153.55 points, reflecting a rise of 0.64%, bringing it to a level of 24,231.85. In the last four consecutive trading sessions, the Sensex experienced a decline of 1.49%, whereas the Nifty recorded a decrease of 2.05% over the preceding seven trading sessions.
