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Benchmarks trade flat with positive bias in early deals
Aug-21-2026

Indian equity benchmarks made flat-to-positive start on Friday but soon turned volatile amid cautiousness as Brent crude remained above $93 a barrel due to unresolved US-Iran tensions, keeping inflation concerns elevated. Also, rising US bond yields and renewed geopolitical tensions kept investors cautious.

Both Sensex and Nifty were trading flat with positive bias in early deals amid value buying in metal and banking stocks, while selling in IT and tech stocks kept upside in check. Some support came as India’s production growth of nine key infrastructure sectors rose to 5.4 per cent in July following an increase in output of coal, refinery products, cement, electricity and iron ore. However, upside remained capped as the provisional data showed that foreign portfolio investors (FPIs) sold shares worth Rs 583.36 crore on August 20, 2026.

In stock specific development, HDFC Bank traded higher after it raised $1.75 billion through three-year and five-year senior unsecured bonds from its GIFT City branch, marking its biggest overseas fundraise since the global financial crisis in 2008.

On the global front, Asian markets were trading mostly higher, despite a sharp overnight selloff on Wall Street. In Japan, core consumer inflation accelerated to 1.8% year-on-year in July from 1.6% in June, marking the fastest pace since January. Investors now turned their attention to the Federal Reserve's policy outlook and the upcoming Jackson Hole Economic Policy Symposium from 27-29 August.

The BSE Sensex is currently trading at 77577.24, up by 39.52 points or 0.05% after trading in a range of 77445.86 and 77725.67. There were 12 stocks advancing against 17 stocks declining, while 1 stock remained unchanged on the index.

The gaining sectoral indices on the BSE were Metal up by 0.68%, PSU up by 0.43%, Bankex up by 0.36%, Basic Materials up by 0.36% and Industrials up by 0.24%, while IT down by 0.66%, FMCG down by 0.54%, TECK down by 0.45%, Consumer Durables down by 0.44% and auto down by 0.37% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 1.36%, Bharat Electronics up by 0.95%, Tata Steel up by 0.71%, HDFC Bank up by 0.58% and Bajaj Finserv up by 0.40%. On the flip side, TCS down by 1.01%, HCL Technologies down by 0.94%, Titan Company down by 0.80%, Infosys down by 0.77% and Interglobe Aviation down by 0.77% were the top losers.

Meanwhile, in an encouraging move, the Directorate General of Foreign Trade (DGFT) has amended the Foreign Trade Policy (FTP) to make it easier for exporters to invoice overseas sales and receive payments in Indian rupees. The DGFT said two paragraphs of the FTP 2023 have been amended to align the provisions relating to denomination of export contracts and eligibility for FTP benefits in respect of export realisation in Indian Rupees with the Foreign Exchange Management (Manner of Receipt and Payment) Regulations 2023. For countries outside the Asian Clearing Union (ACU), export contracts and invoices can now be denominated in either foreign currency or Indian rupees. 

Regarding this, economic think tank GTRI said eligible rupee payments received through approved banking channels will also qualify for FTP benefits and count towards export obligations, bringing them on par with foreign-currency receipts. Exports financed through EXIM Bank or Government of India lines of credit may also be invoiced in rupees.

The ACU is a regional payment arrangement established in 1974 to facilitate trade settlements and reduce repeated transfers of foreign exchange by periodically settling the net obligations of its members. It has nine members Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka represented by their central banks or monetary authorities. For exports to Bangladesh, Iran, Maldives, Myanmar, Pakistan and Sri Lanka, contracts must use a currency determined by the ACU. However, invoicing and settlement may also follow directions issued by the Reserve Bank of India (RBI). Nepal and Bhutan are treated separately. Export contracts with these two countries must generally be denominated and settled in Indian rupees or according to RBI directions.

The amendment aligns the FTP with RBI's Foreign Exchange Management regulations issued in 2023, which already allow wider use of the rupee in international payments. Earlier, exporters receiving rupee payments through an RBI-approved banking channel were not always certain whether such receipts would qualify for FTP benefits or count towards their export obligations. The new rules remove this uncertainty by placing eligible rupee receipts on par with foreign-currency earnings. GTRI Founder Ajay Srivastava said rupee settlement may reduce currency-conversion costs and exchange-rate risks for Indian exporters.

The CNX Nifty is currently trading at 24243.85, up by 12.00 points or 0.05% after trading in a range of 24206.80 and 24284.05. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Kotak Mahindra Bank up by 2.03%, Bharat Electronics up by 1.03%, Hindalco Industries up by 0.94%, HDFC Bank up by 0.94% and Tata Steel up by 0.66%. On the flip side, TCS down by 1.13%, Grasim Industries down by 1.03%, Apollo Hospital down by 0.86%, Titan Company down by 0.82% and HCL Technologies down by 0.77% were the top losers.

Asian markets were trading mostly in green; Hang Seng surged 207.51 points or 0.80% to 25,906.00, Taiwan Weighted rose 176.04 points or 0.39% to 45,109.78, KOSPI gained 29.94 points or 0.44% to 6,882.52, Jakarta Composite advanced 28.99 points or 0.45% to 6,530.57, Straits Times added 7.92 points or 0.14% to 5,679.83 and Shanghai Composite was up by 0.09 points to 3,903.81, while Nikkei 225 slipped 307.79 points or 0.47% to 65,909.00.
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