Key Market Insights - Altifi Weekly Bulletin | August 2026

Economy and regulatory updates

• India’s industrial output, as measured by the Index of Industrial Production, expanded 7.3% in June against a revised 5.0% in May 2026.

• The HSBC Flash Manufacturing Purchasing Managers’ Index (PMI) declined to 53.9 in July compared with 54.2 in June, while the HSBC Flash Services PMI fell to 53.1 from 57.4 and the HSBC Flash Composite PMI declined to 54.3 from 57.1.

• The United States (US) imposed a 10% tariff on certain Indian goods over forced-labour concerns, adding a new dimension to trade talks.

• The government has clarified that EPS 2026 will preserve pension benefits for the existing beneficiaries of EPS 1995 and the Family Pension Scheme 1971, ensuring continuity of pension entitlements.

• The government introduced a bill to address payment delays faced by micro, small and medium enterprises, aiming to strengthen payment discipline, improve cash flows and enhance ease of doing business.

• The Union Cabinet has approved the Rs 1,264 crore Ballari–Guntakal railway project, improving rail connectivity between Karnataka and Andhra Pradesh and enhancing freight movement.

• The Reserve Bank of India (RBI) proposed making securitisation notes issuance mandatory in demat form while retaining the minimum investment size at Rs 1 crore, aiming to improve transparency, operational efficiency and investor protection in the securitisation market.

• The Securities and Exchange Board of India (SEBI) is to introduce a closing auction session for futures and options stocks from August 3, allowing eligible stocks to undergo a closing price discovery mechanism to improve price efficiency and alignment between the cash and derivatives markets.

• The SEBI has issued an operational framework to speed up the launch of alternative investment fund (AIF) schemes, streamlining regulatory processes and reducing timelines for fund launches to enhance ease of doing business for the AIF industry.
  
  

Source: MOSPI, RBI

Indian debt market update

• The interbank call money rate ended higher at 5.35% in the week ended July 31 compared with 5.12% in the week ended July 24.

• The yield on the 10-year benchmark 6.94% GS 2036 paper closed at 6.83% in the week ended on July 31, 2026, unchanged from the previous week as loses due to lower crude oil prices were offset by cautious sentiment ahead of key global events including major central bank policy decisions.

• At the beginning of the week, the benchmark yield declined as falling crude oil prices following easing geopolitical tensions in the Middle East reduced inflation concerns and supported demand for government securities.

• However, yields pared losses later after the United States (US) Federal Reserve kept interest rates unchanged while maintaining a cautious, data-dependent stance. The advance estimate of the US second quarter gross domestic product (GDP) highlighted resilient growth, while the June 2026 Core PCE Price Index showed inflation was above target, reinforcing expectations that interest rates could remain elevated for longer.

Source: CRISIL Fixed Income Database, RBI ^ Data as of 24th Jul 2026 vs 17th Jul 2026 vs 19th Jun 2026 respectively

Source: CRISIL Fixed Income Database

Indian equity market updates

• Indian equities ended the week higher, supported by stronger-than-expected first-quarter earnings and robust domestic industrial output data for June. Investor sentiment remained positive despite intermittent caution ahead of policy decisions by major global central banks and concerns over the global interest rate outlook. The BSE Sensex and Nifty 50 gained 2.68% and 2.59%, respectively.

• Sectoral performance was positive during the week. BSE Information Technology (IT), BSE Auto, and BSE Consumer Durables (CD) stocks emerged as the top gainers, advancing 6.45%, 5.84% and 3.58%, respectively, supported by strong first-quarter earnings and upbeat management commentary.

• On the other hand, BSE Power and BSE Capital Goods (CG) indices declined 0.70% and 0.46%, respectively, amid profit booking following a cautious investor approach.

• Weekly flows: Domestic Institutional Investors (DIIs) recorded net inflows of Rs 5,387.66 crore, while Foreign Institutional Investors (FIIs) saw net inflows of Rs 5,949.96 crore.

• MTD trend: DIIs reported net inflows of Rs 35,099.25 crore, whereas FIIs registered net outflows of Rs 5,778.99 crore.

• YTD positioning: DIIs remained net buyers at Rs 4,97,683.95 crore, while FIIs stand as net sellers at Rs 3,44,067.11 crore.

Source: BSE, NSE

Source: SEBI, NSE, NSDL

Global Equity market summary

• US stocks ended higher during this week, supported by strength in semiconductors and broader technology. Investor sentiment improved after an upbeat outlook for artificial intelligence (AI) infrastructure helped ease concerns over heavy capital spending. However, gains were limited after the Fed held interest rates steady, while dissenting views favouring a rate hike increased uncertainty over the policy outlook.

• Britain's FTSE index ended the week higher, led by gains in banking, commodity and consumer-related stocks. However, the Bank of England's decision to keep interest rates unchanged and mixed earnings reports weighed on the blue-chip index.

• Japan’s Nikkei index ended lower this week, as caution ahead of key US and Japanese earnings, weakness in chip-related stocks, lower oil prices and the Bank of Japan's steady policy stance resulting in a subdued market close for the week.

• The Hang Seng Index ended the week on a positive note as gains in technology and internet stocks, supported by easing geopolitical concerns, lower crude prices, strong liquidity and upbeat initial public offering sentiment helped sustain confidence.

• The China Shanghai Composite ended the week higher as strong gains in semiconductor and AI stocks, supported by stronger July PMI data, boosted sentiment even as caution persisted over technology valuations and continued selling in AI-linked shares.

Source: Websites of respective stock exchanges

Global Yield

• The US Treasury yield ended higher during the week as investors pared expectations of near-term Federal Reserve rate cuts following the Fed's policy decision and resilient US economic data.

• Yields declined early in the week as easing geopolitical tensions and softer crude oil prices reduced inflation concerns.

• However, yields rebounded later in the week after the Federal Reserve kept interest rates unchanged and reiterated its data-dependent stance. Lower-than-expected jobless claims reinforced expectations that the Fed could keep interest rates higher for longer, pushing Treasury yields higher.

• The US 10-year Treasury yield ended higher at 4.75% on July 31, compared with 4.69% on July 24.

Source: Financial Websites

Commodities and Currency

• Crude oil prices weakened during the week on the NYMEX closing to $84.67 per barrel on July 31, 2026, compared with $89.31 per barrel on July 24, 2026, as concerns regarding supply disruptions eased and shipments through key maritime channels were largely uninterrupted. The absence of a significant breakthrough in US-Iran discussions limited the downside.

• Gold prices declined to Rs 142,860 per 10 grams as of July 31 from Rs 143,781 as of July 24 due to profit booking and a stronger dollar.

• Silver prices fell to Rs 218,295 per kg on July 31 against Rs 222,721 per kg, tracking losses in gold due to subdued demand.

• The rupee strengthened to Rs 95.37 against the US dollar, supported by a decline in crude oil prices, which eased concerns over India’s import bill. Additionally, persistent RBI intervention and improved foreign fund inflows provided sustained support to the currency.

• However, gains were capped by intermittent corporate dollar demand.

Source: Respective commodity exchanges, ibjarates.com

Source: RBI Reference Rate

Global Economic

• The Federal Reserve kept interest rates unchanged at 3.50% to 3.75% for a fifth consecutive meeting. The decision was approved by the Federal Open Market Committee (FOMC) by a vote of 9-3.

• The US economy expanded by an annualised 1.5% in Q2 2026, compared to 2.1% in Q1 2026.

• Eurozone economy grew 1.0% year-on-year in the second quarter of 2026, accelerating from an upwardly revised 0.5% growth rate in the previous quarter.

• The Bank of England (BoE) kept its Bank Rate unchanged at 3.75% at its July 2026 meeting, with a 6-3 vote split, while three policymakers voted for a 25-basis-point hike to 4.0%.

Source: Financial Websites

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