Indian Stocks Dip: US-Iran Tensions & FII Outflows Hit Markets

Indian equity benchmarks registered declines in morning trade, with investor sentiment dampened by the ongoing US-Iran impasse. Foreign Institutional Investors (FIIs) continued their net selling trend, contributing to market weakness.

• BSE Sensex traded at 77699.34, down by 380.62 points.
• The index recorded a 0.49% decrease.
• FIIs were net sellers on August 13, 2026, with a net outflow of Rs 510.69 crore.

Traders remained cautious, reflecting the subdued sentiment despite encouraging merchandise trade data released by the Commerce Ministry. Broad-based weakness was evident across the market, with the Sensex and Nifty firmly in negative territory.

Global Market Dynamics

• Asian markets displayed mixed trading patterns amidst uncertainty surrounding a potential deal to resolve the Middle East conflict.
• The reopening of the Strait of Hormuz continues to pose risks to the global inflation outlook.

Despite the domestic market downturn, India’s merchandise exports showed robust growth. The Commerce Ministry reported a significant increase in July 2026, primarily driven by petroleum products.

India’s Merchandise Trade Performance

• Merchandise exports rose by 19.63% to $44.24 billion in July 2026, up from $36.98 billion in July 2025.
• Merchandise imports grew by 17.51% year-on-year to $76.22 billion in July 2026, compared to $64.86 billion in July 2025, driven by crude oil shipments.
• The trade deficit widened to $31.98 billion in July 2026, against $27.88 billion in July 2025.
• Merchandise exports for April-July 2026-27 stood at $173.78 billion, up from $148.48 billion in the prior year period.

The Sensex traded within a range of 77684.37 and 77923.58 during morning deals. Market breadth on the index indicated more declines than advances, with 8 stocks gaining against 22 stocks declining.

Sectoral Performance on BSE

• Top gaining sectoral indices: Telecom up by 0.28%, Consumer Durables up by 0.07%.
• Top losing sectoral indices: Metal down by 1.40%, Basic Materials down by 0.93%, PSU down by 0.78%, Auto down by 0.63%, Oil & Gas down by 0.59%.

Sensex Top Movers

• Top Gainers: Adani Ports & SEZ up by 1.09%, Eternal up by 0.94%, Titan Company up by 0.77%, ICICI Bank up by 0.29%, Infosys up by 0.26%.
• Top Losers: Tata Steel down by 1.73%, Tech Mahindra down by 1.33%, Mahindra & Mahindra down by 1.26%, Sun Pharma down by 1.18%, Axis Bank down by 1.14%.

Despite positive trade figures, the Indian equity market continued to reflect global geopolitical concerns and persistent foreign capital outflows, leading to a bearish start to the trading day.