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Key gauges end flat amid geopolitical tensions
Aug-21-2026

Indian equity benchmarks ended flat on Friday, a day after registering a rebound, as elevated crude oil prices due to geopolitical uncertainties and a sharp fall in the US markets made investors cautious. Some concern also came as exchange data showed Foreign Institutional Investors (FIIs) offloaded equities worth Rs 583.36 crore on Thursday.

Both the Sensex and Nifty struggled for direction through the session and ended largely unchanged as gains in Utilities, Power and Banking stocks were offset by selling in Auto, FMCG and IT stocks. 

Some of the important factors in trade: 

India’s private sector activity improves in August: According to the data report, the HSBC Flash India PMI Composite Output Index - a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors - was up from a final reading of 54.3 in July to 54.6 in August. 

DGFT amends foreign trade policy to ease export, rupee settlement rules: 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. 

Nine key infrastructure sectors’ output growth rises 5.4% in July: The Ministry of Commerce & Industry in its latest data has showed that nine key infrastructure sectors’ output growth rose to 5.4 per cent in July 2026 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: In order to strengthen manufacturing and expand the country’s presence in global trade, 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. 

Global front: European markets were trading higher even as data from the Office for National Statistics showed UK retail sales dropped unexpectedly in July on weaker non-food store sales. Retail sales decreased 0.5 percent month-on-month in July, reversing a revised 0.7 percent rise in June. Asian markets ended mostly higher despite uncertainty over the reopening of the Strait of Hormuz and the Middle East tensions

Finally, the BSE Sensex rose 3.11 points to 77,540.83 and the CNX Nifty was up by 20.15 points or 0.08% to 24,252.00.

The BSE Sensex touched high and low of 77,725.67 and 77,445.86, respectively. There were 14 stocks advancing against 16 stocks declining on the index. 

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% and 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.

The top gainers on the Sensex were Power Grid Corporation up by 2.66%, Bharat Electronics up by 1.17%, Kotak Mahindra Bank up by 1.08%, NTPC up by 0.61% and Bajaj Finserv up by 0.60%. On the flip side, Trent down by 1.53%, Maruti Suzuki India down by 1.51%, Interglobe Aviation down by 1.35%, HCL Technologies down by 1.21% and Hindustan Unilever down by 0.96% were the top losers.

Meanwhile, in order to strengthen manufacturing and expand the country’s presence in global trade, 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. Additional Secretary in the Department of Commerce Yashvir Singh said all trade agreements which India has signed 'is a door, but doors, however magnificently crafted, do not open themselves. It is the industry that must walk through them. 

He stated the industry should use FTAs to widen market access, attract investment and technology, diversify supply chains, and develop manufacturing ecosystems that can withstand global shocks. Moreover, he said India aims not just to join the global manufacturing landscape, but to position itself as a reliable, competitive, and trusted partner across global value chains.

He outlined five strategic imperatives for the industry, stressing that these were obligations rather than mere suggestions. The first was to invest in greater FTA utilisation by understanding rules-of-origin requirements and mapping supply chains to qualify for preferential tariffs. He noted that the resulting duty savings are tangible and can provide an immediate competitive advantage. He also urged businesses to move up the value chain.

Besides, he said the share of capital goods in India's export basket has already risen from 13 per cent in 2014 to 19 per cent currently, but that trajectory must be accelerated. He also called for building supply chain resilience as China's concentration in upstream materials is a risk for the world. He said ‘For India, it is also an opportunity. Invest in critical minerals, in API (Application Programming Interface) manufacturing, in domestic electronic components. Every supply chain we secure is a choke point we neutralise. Fourth, diversify markets actively.’ India's trade agreements with Oman, New Zealand, and Mauritius have opened corridors in the Gulf, Oceania, and East Africa that were earlier inaccessible on preferential terms.

He stated ‘Fifth, engage on standards. The country that rides the technical standards owns the market. India must move from being a standard taker to a standard setter. UPI, ONDC, and BharatNet are early signals of what sovereign standards can achieve’. He added 'now industry must build the scale. Let us not be China plus one. Let us be India, the trusted partner, the resilient manufacturer, and the next great engine of global growth.'

CNX Nifty touched high and low of 24,284.05 and 24,206.80, respectively. There were 25 stocks advancing against 24 stocks declining, while 1 stock remained unchanged on the index. 

The top gainers on Nifty were Power Grid Corporation 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.  

European markets were trading higher; UK’s FTSE 100 increased 12.65 points or 0.12% to 10,760.81, France’s CAC rose 7.31 points or 0.09% to 8,460.40 and Germany’s DAX gained 47.36 points or 0.18% to 26,030.40.

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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