Indian stock market: The benchmark indices, Sensex and Nifty 50, closed largely unchanged on Friday, 21 August, extending their losing streak to a second straight week. Persistent concerns over elevated crude oil prices, a lack of progress in US-Iran negotiations, and rising US bond yields weighed on market sentiment.
The Sensex ended 3 points higher at 77,540.83, while the Nifty 50 gained 20 points, or 0.08%, to close at 24,252. The broader market also finished in positive territory, with the Nifty Midcap 150 rising 0.08% and the Nifty Smallcap 250 advancing 0.41%.
For the week, the Nifty dropped around 0.47% to end at 24,252, while the Sensex declined nearly 0.60% to close at 77,540.83.
Stock market outlook and trading strategy
According to Ponmudi R, CEO – Enrich Money, for Indian equities, the relationship between crude oil prices, US Treasury yields and the dollar is expected to remain a key driver.
“Investors will also closely monitor the rupee and institutional flows to gauge whether domestic markets can recover and stabilise following the recent correction. With most of the June-quarter earnings season now concluded, global macroeconomic trends and geopolitical developments are likely to play a more significant role in determining the market’s near-term trajectory,” he said.
Meanwhile, Ajit Mishra – SVP, Research, Religare Broking recommended investors to maintain a selective approach and focus on companies with strong earnings visibility, healthy balance sheets, sustainable cash flows and improving relative strength.
Mishra noted that banking, financial services, infrastructure, capital goods, defence, metals and select healthcare stocks appear relatively better positioned, while caution is warranted in sectors vulnerable to higher crude prices and global demand uncertainty.
“Given the prevailing volatility, traders should avoid aggressively chasing prices and instead use meaningful declines to gradually accumulate fundamentally strong companies. Disciplined position sizing, prudent risk management and a stock-specific approach are likely to remain critical until greater clarity emerges on global monetary policy, crude oil prices and geopolitical developments,” he added.
Top 5 triggers for the Indian stock market
1] US Fed chairman Kevin Warsh’s speech
Federal Reserve Chair Kevin Warsh is set to deliver his much-awaited first keynote speech at the annual Jackson Hole Economic Policy Symposium in Wyoming on Friday, August 28, 2026.
Markets will closely watch his address for insights into his approach to persistent inflation, the future direction of interest rates, and his more streamlined communication style.
“Against a backdrop of volatile long-dated Treasury yields, Fed Chair Kevin Warsh’s address at the Jackson Hole symposium on Friday, August 28, will be closely scrutinised for clues on how the central bank is weighing persistent inflation risks against signs of a softer labour market ahead of its September policy meeting,” Ponmudi added.
2] US-Iran war
Iran on Saturday criticised Washington’s plans to impose new sanctions, warning that the measures could further weaken its economy and affect key trading partners, including China.
Nearly six months after the United States and Israel launched airstrikes on Iran on February 28, hostilities have largely ceased, but there are still no clear indications that either side is moving toward peace negotiations.
Oil shipments through the Strait of Hormuz have come to an almost complete halt, with Tehran warning that it could target unauthorised oil tankers attempting to pass through the strategically important waterway. Meanwhile, Iran’s economy continues to face severe pressure from existing sanctions.
U.S. Treasury Secretary Scott Bessent is scheduled to hold a press conference at 2 p.m. EDT on Monday, following his warning that Washington would impose the “toughest sanctions in history” against Iran.
3] Crude oil prices
Crude oil futures ended higher on Friday after US President Donald Trump threatened economic sanctions against countries trading with Iran, fuelling concerns over potential supply disruptions in the weeks ahead.
Brent crude, the global benchmark, settled 61 cents, or 0.65%, higher at $94.39 a barrel. Meanwhile, US West Texas Intermediate (WTI) crude gained 23 cents, or 0.26%, to settle at $87.06 a barrel.
For the week, Brent advanced 6.39%, while WTI climbed 5.66%. Both benchmarks had touched their highest levels since July 24 in the previous trading session.
4] FII flows
Foreign institutional investors (FIIs) remained net sellers in Indian equities on Friday, while domestic institutional investors (DIIs) continued their buying spree, according to provisional exchange data.
FIIs offloaded equities worth ₹542.71 crore on a net basis on August 21, slightly lower than their net selling of ₹583.36 crore recorded on Thursday. Meanwhile, DIIs remained buyers, purchasing equities worth ₹2,124.14 crore, though their net buying declined from ₹3,537.71 crore in the previous session.
During the session, FIIs purchased equities worth ₹12,560.91 crore and sold shares valued at ₹13,103.62 crore. DIIs, on the other hand, bought equities worth ₹15,258.71 crore while selling shares worth ₹13,134.57 crore.
5] Gold prices
Gold prices rose by ₹264 to ₹1.58 lakh per 10 grams in futures trading on Thursday, supported by positive global trends as a sharp decline in the US dollar increased the appeal of the precious metal.
On the Multi Commodity Exchange (MCX), gold futures for October delivery advanced ₹264, or 0.17 per cent, to ₹1,58,260 per 10 grams, with a business turnover of 10,450 lots.
Meanwhile, in international markets, Comex gold futures for December delivery remained flat at $4,546 per ounce in New York.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
