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EQUITY
Post Session: Quick Review
Aug-21-2026

Indian equity benchmarks managed to keep their heads above water on Friday, as a survey showed that India’s private-sector activity edged slightly higher in August from a more than four-year low, with a rebound in services growth offsetting the weakest expansion in the manufacturing sector in half a decade. Meanwhile, markets remained volatile throughout the day, weighed down by a rebound in U.S. Treasury yields, elevated crude oil prices, and persistent geopolitical uncertainty.

Both the Sensex and Nifty remained range-bound and ended marginally higher, tracking positive cues from other Asian markets. Meanwhile, Power Grid Corporation emerged as one of the top gainers on the Sensex and Nifty.

Some of the important factors in trade:

Nine key infrastructure sectors’ output growth rises 5.4% in July: 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.

Govt urges industry to use FTAs, build resilient supply chains, diversify export markets: Traders took support as the government has nudged the industry to utilise free trade agreements (FTAs), focus on value addition, build resilient supply chains, and actively diversify export markets.

Cross-border trade in local currencies to shape India's forex markets in coming decade: Traders took note of RBI Deputy Governor Rohit Jain, who said that local currencies will play an ever-increasing role in cross-border trade and payments as they lower transaction costs, reduce currency mismatches, and improve settlement efficiency.

On the global front: European markets were trading mostly in green, supported by gains in technology and utility stocks. Asian markets ended mostly higher, despite weak cues from Wall Street overnight.

The BSE Sensex ended at 77540.83, up by 3.11 points after trading in a range of 77445.86 and 77725.67. There were 14 stocks advancing against 16 stocks declining on the index. (Provisional)

The top gaining sectoral indices on the BSE were Utilities up by 0.69%, Power up by 0.64%, Bankex up by 0.40%, Industrials up by 0.34%, Consumer Durables up by 0.28% while, Auto down by 0.68%, FMCG down by 0.68%, IT down by 0.42%, Healthcare down by 0.33%, and TECK down by 0.24% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Power Grid Corporation of India up by 2.54%, Bharat Electronics up by 1.16%, Kotak Mahindra Bank up by 1.04%, Bajaj Finserv up by 0.60% and NTPC up by 0.59%. On the flip side, Trent down by 1.64%, Maruti Suzuki India down by 1.51%, Interglobe Aviation down by 1.41%, HCL Technologies down by 1.18% and Infosys down by 0.99% were the top losers. (Provisional)

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 ended at 24252.00, up by 20.15 points or 0.08% after trading in a range of 24206.80 and 24284.05. There were 25 stocks advancing against 24 stocks declining on the index, while one stock remained unchanged. (Provisional)

The top gainers on Nifty were Power Grid Corporation of India up by 2.87%, HDFC Life Insurance up by 2.36%, Kotak Mahindra Bank up by 1.37%, Nestle India up by 1.31% and Bharat Electronics up by 1.12%. On the flip side, Maruti Suzuki India down by 1.77%, Trent down by 1.55%, HCL Technologies down by 1.21%, Interglobe Aviation down by 1.06% and ONGC down by 0.88% were the top losers. (Provisional)

European markets were trading mostly in green; Germany’s DAX gained 77.36 points or 0.3% to 26,060.40 and France’s CAC rose 2.61 points or 0.03% to 8,455.70, while UK’s FTSE 100 decreased 9.5 points or 0.09% to 10,738.66.

Asian markets ended mostly higher on Friday, despite Wall Street’s fall overnight as the US Treasury Department's plan to expand government debt buybacks appeared to have only limited capacity to calm markets. Chinese shares gained marginally as investors were optimistic that Beijing may increase policy support to counter a slowing economy. Market focus has shifted to the upcoming China's National People's Congress Standing Committee meeting on August 25-28, where market participants anticipate further policy support following weak July economic data. Hong Kong shares rose as traders responded to easing local inflation, which eased to 1.7% in July from 2% in each of the previous two months. Moreover, South Korea’s Kospi rose as strength in major chipmakers and robust semiconductor exports boosted investor sentiment. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,905.20

1.48

0.04

Hang Seng

26,009.46

310.97

1.21

Jakarta Composite

6,525.69

24.10

0.37

KLSE Composite

1,736.48

-0.23

-0.01

Nikkei 225

66,016.36

-200.43

-0.30

Straits Times

5,688.96

17.05

0.30

KOSPI Composite

6,912.95

60.37

0.88

Taiwan Weighted

45,224.29

290.55

0.65
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