Indian equities ended the week lower, as losses in information technology (IT), telecommunications, and consumer stocks outweighed gains in realty, metals, and private banks. Elevated crude and volatile global bond markets kept investors cautious even as foreign investors returned in force.
Indian equities ended little changed on Friday, with the Sensex closing flat at 77,540.83 and the Nifty 50 edging just 0.08% higher to 24,252. For the week, the Sensex fell 0.6%, while the Nifty declined 0.5%. Realty leadsReal estate stocks emerged as the strongest pocket.

The BSE Realty Index gained 1.58% during the week, while the BSE Private Banks and the BSE Metal advanced 0.65% and 0.60%, respectively. In contrast, the BSE IT Index fell 2.61%, making it the worst-performing sectoral gauge. The BSE Telecommunication declined 1.97%, while the BSE Fast Moving Consumer Goods lost 1.71%.“Domestic cyclicals should hold ground next week.
Realty and private banks are riding rate-cut expectations and steady credit growth, while metals are benefiting from tight global supply. IT and FMCG could see a valuation-led bounce, but a durable rebound needs clearer signs of US demand and rural consumption,” said Rajesh Singla, chief executive and fund manager at Alpha AMC.

Santosh Meena, head of research at Swastika Investmart Ltd, expects commodity-linked stocks to remain in focus, aided by a weaker dollar and firm global commodity prices.“Metals, realty and rate-sensitive financials appear better placed to retain momentum.
Easing US bond yields could also benefit PSU (public sector undertaking) banks, real estate, and select automobile stocks. FMCG may remain under pressure from elevated input and logistics costs, while a broad IT rebound looks unlikely unless global cues improve,” Meena said.

Global markets divergeGlobal equities delivered mixed returns as rising bond yields, expensive crude and inflation concerns weighed on risk appetite. Hong Kong’s Hang Seng Index led major indices with a 3.6% gain. Indonesia’s Jakarta Composite rose 1.9%, Thailand’s benchmark advanced 0.5%, and Brazil’s Bovespa and Malaysia’s benchmark added about 0.6% each.
India’s Nifty 50 declined 0.5%, but outperformed several technology-heavy Asian and European markets. Japan’s Nikkei 225 was the biggest laggard, falling 3.9%. France’s CAC 40 declined 2.1%, Taiwan’s Taiex lost 1.3%, China’s CSI 300 fell 1%, and South Korea’s Kospi slipped 0.9%.

The benchmark US 10-year Treasury yield stood at 4.70%, keeping pressure on global risk assets. Meena attributed India’s resilience partly to its substantial underperformance earlier in 2026, while markets that had led the global rally were more vulnerable to rising yields.
“The sharp rise in US bond yields has hurt growth-oriented markets more than India. However, crude moving above $90 per barrel remains a key domestic headwind. Uncertainty around the US-Iran war could keep oil elevated, while rising commodity prices are adding to inflation risks.

Bond markets are also not yet providing a comforting signal for global equities,” he said. FPI inflows hit a highDespite the pressure from elevated US yields, strong foreign capital flows helped cushion domestic equities. Foreign portfolio investors stepped up purchases and invested a net ₹23,544 crore in August so far (up to 21 August), according to data from National Securities Depository Ltd.
This surpassed February’s ₹22,615 crore, marking the highest monthly inflow of 2026 and the largest since September 2024, when FPIs poured in ₹57,724 crore. This also marks the second consecutive month of FPI buying, following a net inflow of ₹20,200 crore in July.

However, August's surge comes against a backdrop of heavy foreign capital flight. Year-to-date, overseas investors remain net sellers to the tune of ₹2.30 trillion—already eclipsing the ₹1.66 trillion outflow recorded in 2025. Analysts attribute this selective August rebound to market-specific dynamics rather than a fundamental shift in foreign sentiment.
“The latest inflow appears more tactical than structural. Attractive valuations following the earlier sell-off, along with buying in financials and domestic cyclicals, are drawing in foreign money. A sustained reversal will require another two or three months of consistent inflows,” Singla said.