Indian stock markets are expected to open flat on Friday, August 21, 2026, following a recovery in the previous session. Investor sentiment remains cautious as rising US bond yields and elevated crude oil prices create headwinds for global equities.
Indian equity benchmarks are expected to see a muted start on Friday, August 21, 2026, following a positive session on Thursday. The Nifty 50 managed to break a seven-session losing streak in the previous trading day, closing at 24,231.85, while the Sensex added 628.04 points to finish at 77,537.72. Despite this recovery, futures indicated by the GIFT Nifty suggest little upward momentum at the open.
Global cues remain the primary concern for domestic investors today. US markets saw a decline overnight, with the Dow Jones Industrial Average falling 1.32% and the S&P 500 dropping 0.87%. Much of this pressure stems from rising US Treasury yields, with the 10-year yield hovering around 4.71%. Higher bond yields often reduce the appeal of riskier assets like stocks and can lead to foreign capital moving away from emerging markets.
Another significant challenge is the rise in energy costs. Brent crude oil prices have climbed near $94 a barrel, driven by concerns over supply disruptions amid escalating US-Iran tensions. For the Indian economy, which imports a large portion of its oil requirements, sustained high prices can raise concerns about inflation and the country's import bill, potentially impacting the profitability of oil-dependent sectors.
Institutional flow data provides a mixed picture for the market. Domestic institutional investors (DIIs) acted as a support pillar on Thursday, with net purchases of ₹3,537 crore. However, foreign institutional investors (FIIs) remained net sellers, offloading shares worth ₹583 crore. Investors will likely watch whether the DII buying can continue to absorb selling pressure from foreign funds, especially if rising US yields tempt more capital to leave emerging markets.
From a technical perspective, the Nifty 50 faces a critical test. Analysts point out that a sustained move above the 24,265 level is needed to push the index toward 24,400. On the downside, strong support is identified between 23,800 and 24,000. If the index fails to hold these levels, further consolidation may occur.
The most important factors for investors to track in the coming sessions will be the movement in crude oil prices, which dictate sentiment in energy-sensitive sectors, and the stability of US Treasury yields. Additionally, any updates regarding the geopolitical situation in the Middle East may influence volatility in the energy market and, consequently, global risk appetite.