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US-Iran tensions drag markets lower for third straight week; tech optimism caps losses
Aug-28-2026

Indian markets extended losses for third straight week amid fresh US sanctions, with Washington promising an 'economic D-Day' against Iran and its trading partners. Investors stayed on sidelines ahead of Kevin Warsh's first Jackson Hole speech as Fed Chair. However, easing crude oil prices and positive global technology outlook following Nvidia’s upbeat results, limit the downside.

Some of the major developments during the week are:

Service PPI inflation rises across key segments in Q1FY27: The provisional estimates of Service Producer Price Indices (PPI) (Base Year 2022-23) for Q1 of FY 2026-27 (FY27) showed that inflation rate in Air Service recorded highest rate of price rise among the seven major services. 

S&P retains India’s sovereign rating at ‘BBB’ with stable outlook: S&P Global Ratings has retained India’s sovereign rating at ‘BBB’ with a stable outlook, and said that the country is a dynamic and fast-growing economy supported by policy stability and high infrastructure investment.

India, Brazil sign MoU to deepen bilateral cooperation in telecommunications, ICTs: India and Brazil have signed Memorandum of Understanding (MoU) to deepen bilateral cooperation in telecommunications and Information and Communication Technologies (ICTs).

India, Cambodia complete BIT negotiations, agree to sign pact soon: With a view to boosting economic ties, the Commerce Ministry said India and Cambodia have completed negotiations for a bilateral investment treaty (BIT) and agreed to sign it at the earliest.

India can achieve $55 trillion economy by 2047 by leveraging AI talent: Former Chief Economic Adviser Krishnamurthy V Subramanian has said that India can achieve a $55 trillion economy by 2047 by leveraging its young demographic in AI and strengthening its presence in key sunrise sectors.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex slipped 276.32 points or 0.36% to 77,264.51 during the week ended August 28, 2026. On the sectoral front, S&P BSE Fast Moving Consumer Goods was down by 218.92 points or 1.22% to 17,761.55, S&P BSE Auto was down by 523.51 points or 0.81% to 63,737.20 and S&P BSE BANKEX was down by 405.32 points or 0.62% to 64,963.48 were the top losers, while S&P BSE Metal was up by 1,173.71 points or 2.81% to 42,969.35, S&P BSE Information Technology was up by 644.81 points or 2.20% to 29,978.87 and S&P BSE Healthcare was up by 1,049.76 points or 2.08% to 51,594.97 were the top gainers on the BSE.

NSE movement for the week

The Nifty slipped 76.35 points or 0.31% to 24,175.65. On the National Stock Exchange (NSE), Bank Nifty was down by 265.65 points or 0.46% to 57,496.30, while Nifty IT was up by 749.45 points or 2.45% to 31,281.70, Nifty Mid Cap 100 increased 333.75 points or 0.52% to 64,069.50 and Nifty Next 50 gained 167.05 points or 0.23% to 74,159.15.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net buyers in equity segment in the week, with gross purchases of Rs 76,986.83 crore and gross sales of Rs 69,611.64 crore, leading to a net inflow of Rs 7,375.19 crore. They also stood as net sellers in the debt segment with gross purchases of Rs 4,494.87 crore against gross sales of Rs 5,671.67 crore, resulting in a net outflow of Rs 1,176.80 crore. In hybrid segment, FIIs stood as net sellers, with gross purchases of Rs 120.12 crore and gross sales of Rs 194.19 crore, leading to a net outflow of Rs 74.07 crore.

Industry and Economy

Expressing optimism over India’s trade relations with Japan, industry body -- The Associated Chambers of Commerce and Industry of India (Assocham) has said that bilateral trade between the two countries is likely to reach $50 billion by 2030, up from $27.47 billion in 2025-26, driven by growing economic complementarities and deeper business engagement. Assocham said India-Japan trade relations have expanded significantly in recent years, with increased exchanges of high-level delegations. It noted that a range of bilateral trade initiatives, along with promising investment announcements, is expected to further boost economic and commercial ties between the two countries.

Outlook for the coming week

Indian equity indices ended lower in passing week with modest cut of around 0.30% amid mixed global cues. Some cautiousness came amid reports that U.S. President Donald Trump is not interested in returning to the previous deal terms with Iran.

The coming week marks the start of a fresh month and is expected to be data heavy week starting with GDP data for Q1FY27, to be released on August 31. On same day, investors will be eyeing Government Budget Value. Traders will be waiting for HSBC Manufacturing PMI Final and Current Account data on September 01. Investors will be eyeing HSBC Composite & Services PMI Final on September 03. Foreign Exchange Reserves data to be out on September 04. Meanwhile, auto companies would grab some attention ahead of their monthly sales figures.

On the global front, investors would be eyeing economic data from United States (US) starting with Dallas Fed Manufacturing Index on August 31, followed by Redbook, ISM Manufacturing PMI, Dallas Fed Services Index on September 01, API Crude Oil Stock, ADP Employment, EIA Crude Oil Stocks on September 02, Balance of Trade, Initial Jobless Claims, ISM Services PMI on September 03, Non-Farm Payrolls and Baker Hughes Oil Rig Count on September 04.

Top Gainers 

  • Kotak Mahindra Bank up by 6.63% was the top gainer on Nifty for the week - Kotak Mahindra Bank continued to show strength after recent Q1 numbers. Recently, the bank reported a 22.55% rise in its consolidated net profit at Rs 5,480.46 crore for Q1FY27, as compared to Rs 4,472.18 crore for the same quarter in the previous year. Meanwhile, the bank’s board has approved appointment of Hiren Vora as bank’s CFO. 
  • Adani Enterprises up by 5.80% was another gainer on Nifty for the week - Adani Enterprises traded higher after multiple brokerages indicated bullish outlook for the stock. Investors remained optimistic that the company’s diversified portfolio will benefit from infrastructure development, energy transition, digitalisation and India's push for domestic manufacturing.

Top Losers 

  • Shriram Finance down by 3.66% was the top loser of the week on Nifty - Shriram Finance traded lower as traders opted to book profits following the gains made by the stock post its Q1 earning numbers. The company reported 59.89% jump in its consolidated net profit at Rs 3,452.77 crore for Q1FY27 as compared to Rs 2,159.40 crore for the same quarter in the previous year.
  • Maruti Suzuki India down by 3.14% was another top loser of the week on Nifty - Maruti Suzuki India faced selling pressure as market participants cashed in on gain made by the stock following its first quarter earnings. Meanwhile, investors awaited the monthly sales data of the company which is scheduled for release in the coming week.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 24,378.60 on August 26 and lowest level of 24,076.85 on August 28. On the last trading day, the Nifty closed at 24,175.65 with weekly loss of 76.35 points or 0.31 percent. For the coming week, 24,042.13 followed by 23,908.62 are likely to be good support levels for the Nifty, while the index may face resistance at 24,343.88 and further at 24,512.12 levels.

US Market

The U.S. markets traded higher during the week, amid indications of diplomatic progress in West Asia, as investors assessed reports that Iran and Oman were nearing an agreement to establish a temporary transit corridor through the Strait of Hormuz.

Some of the major developments during the week are:  

U.S. weekly jobless claims decrease in week ended August 22: Initial jobless claims dipped to 203,000, a decrease of 4,000 from the previous week's revised level of 207,000.

New home sales in U.S. plummet in July: New home sales plummeted by 10.5 percent to an annual rate of 607,000 in July after spiking by 7.6 percent to an upwardly revised rate of 678,000 in June.

Consumer confidence in U.S. shows modest deterioration in August: The Conference Board said its consumer confidence index dipped to 89.4 in August from a downwardly revised 90.2 in July.

U.S. consumer prices rise in July: The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.2 percent in July after edging down by 0.1 percent in June. 

Durable goods orders in U.S. jump in July: Durable goods orders shot up by 1.1 percent in July after climbing by 0.5 percent in June.

European Market

European markets exhibited mixed trend during the passing week, as inflation concerns boosted Fed rate hike expectations, while geopolitical tensions weighed on sentiment.

Some of the major developments during the week are:

French private sector contracts on weaker services activity: The headline composite output index fell to 48.8 in August from 49.4 in July. A score below 50.0 indicates contraction and it was also below forecast of 49.5.

Eurozone private sector expands most in 9 months: The flash survey data from S&P Global revealed that the composite output index climbed unexpectedly to 52.1 in August from 52.0 in July. The reading was seen at 51.7.

French consumer sentiment remains unchanged: The consumer confidence index posted 86 in August, the same as in July. The score continued to remain below its long-term average. The score was expected to rise to 87.

Swedish trade surplus shrinks in July: The trade surplus dropped to Swedish krona (SEK) 1.2 billion in July from SEK 3.5 billion in the corresponding month last year. In June, the surplus was SEK 2.5 billion.

Eurozone private sector credit growth accelerates in July: Adjusted loans to the private sector grew 4.1 percent year-on-year in July, faster than the 3.8 percent increase in June. Moreover, this was the quickest growth in three years.

Asian Market

Asian markets traded mixed during the passing week as traders awaited Federal Reserve Chairman Kevin Warsh's speech at the Jackson Hole economic symposium for clues regarding potential interest rate hikes this year.

Some of the major developments during the week are:

Japan jobless rate falls to 2.4% in July: Japan's unemployment rate edged down to 2.4% in July 2026 from 2.5% in each of the previous three months, coming in below market expectations of the same level.

Japan producer prices climb 0.4% In July: Japan’s producer prices rose 7.2% year-on-year in July 2026, easing slightly from a marginally revised 7.3% increase in the prior month, which had been the fastest pace in more than three years.

China industrial profits rise 17.6% YoY in Jan-July: China’s industrial profits rose 17.6% year-on-year to CNY 4.58 trillion in the first seven months of 2026, slowing from an 18.7% surge in the January-June period.  

Bank Of Korea hikes key rate for second straight time: Bank of Korea raised base rate by 25 bps to 3% at its August 2026 meeting, in line with market expectations, marking a second consecutive rate hike.

Hong Kong trade deficit narrows sharply: Hong Kong’s trade deficit narrowed sharply to $4.9 billion in July 2026 from $34.1 billion a year earlier, marking the smallest trade gap since a surplus in January 2025.
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