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Indian markets face sluggishness during early noon deals
Aug-26-2026

Indian equity benchmarks were facing sluggishness during early noon deals, amid some profit-booking despite positive cues from other Asian markets. Traders took note after the ‘State of the Economy’ article featured in the Reserve Bank of India’s (RBI) August 2026 Bulletin stated that the global economy is confronting a fragile geopolitical environment and continuing trade-related uncertainties. Nevertheless, the domestic economy has demonstrated notable resilience to the ongoing global headwinds, characterised by buoyant domestic demand, and rising manufacturing and services activity.

Both indices, Sensex and Nity, remained below their neutral lines but losses were limited, with traders closely watching the sharp decline in crude oil prices and improving sentiment around the Strait of Hormuz. On the global front, Asian markets were trading mostly in green, even after Singapore's industrial production growth moderated further in July to the lowest level in four months. The preliminary data from the Economic Development Board revealed that industrial production advanced 6.8 percent year-on-year in July, slower than the 7.5 percent growth in June. Production has been rising since September 2025.

The BSE Sensex is currently trading at 77649.68, down by 6.41 points or 0.01% after trading in a range of 77625.73 and 77986.84. There were 13 stocks advancing against 17 stocks declining on the index.

The top gaining sectoral indices on the BSE were Basic Materials up by 0.67%, Bankex up by 0.61%, Healthcare up by 0.53%, PSU up by 0.27% and Metal up by 0.19%, while TECK down by 1.22%, IT down by 0.98%, Telecom down by 0.93%, Consumer Durables down by 0.41% and FMCG down by 0.40% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 3.45%, Ultratech Cement up by 1.26%, Axis Bank up by 1.16%, Bajaj Finserv up by 0.97% and ICICI Bank up by 0.89%. On the flip side, Infosys down by 1.79%, Tech Mahindra down by 1.52%, Larsen & Toubro down by 1.32%, Bharti Airtel down by 1.25% and HCL Technologies down by 0.93% were the top losers.

Meanwhile, the Federation of Indian Micro and Small and Medium Enterprises (FISME) has flagged concerns over Reserve Bank of India’s (RBI) proposal to prohibit Non Banking Financial Companies (NBFCs) from providing revolving credit. It noted that blanket ban on revolving credit by NBFCs will disrupt legitimate working-capital finance used by micro, small and medium enterprises (MSMEs). Earlier this month, RBI issued 'Draft Reserve Bank of India (Non-Banking Financial Companies - Credit Facilities) Amendment Directions, 2026', in which it proposed that NBFC shall only offer credit products which are in nature of term loans and shall not offer any revolving credit products. The central bank has sought stakeholders' feedback on the draft till August 28, 2026.

FISME Secretary General Anil Bhardwaj has said that the RBI's concern regarding indefinite rollovers, hidden borrower stress and harmful app-based lending is understandable. However, working capital for a productive enterprise is economically different from consumer revolving credit. He suggested that regulation should target the risk and conduct of a product, not eliminate a legitimate financing instrument merely because it is revolving. Further, FISME highlighted the importance of NBFC credit saying, ‘NBFCs play a critical role in serving enterprises, geographies, sectors and ticket sizes that are often not adequately served by banks’.

FISME has urged the RBI to retain the objective of transparent, responsible and non-evergreened credit, but reconsider an across-the-board ban on revolving facilities by NBFCs. It suggested that the final directions should distinguish consumer convenience credit from productive working-capital finance, regulate risks through underwriting, monitoring, disclosure and data-governance requirements, and preserve NBFCs' critical role in financing market segments not adequately served by banks.

The CNX Nifty is currently trading at 24277.70, down by 56.85 points or 0.23% after trading in a range of 24266.45 and 24378.60. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Kotak Mahindra Bank up by 3.49%, HDFC Life Insurance up by 2.48%, Axis Bank up by 1.55%, SBI Life Insurance up by 1.48% and ICICI Bank up by 0.98%. On the flip side, Shriram Finance down by 2.03%, Infosys down by 1.99%, Tech Mahindra down by 1.88%, Nestle India down by 1.77% and Bajaj Auto down by 1.65% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted added 663.16 points or 1.45% to 45,832.62, KOSPI increased 65.47 points or 0.96% to 6,808.21, Hang Seng advanced 202.9 points or 0.8% to 25,714.00, Nikkei 225 surged 447.57 points or 0.68% to 66,304.00, and Shanghai Composite strengthened 23.08 points or 0.59% to 3,912.52, while Jakarta Composite plunged 16.19 points or 0.25% to 6,485.48 and Straits Times fell 4.93 points or 0.09% to 5,730.75.
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