26 Aug 2026 Punjab Khabarnama Bureau : Indian stock markets staged a strong recovery on August 25, with benchmark indices reversing early losses as crude oil prices fell below the $90-per-barrel mark and late-session buying improved investor sentiment.
Sensex, Nifty Recover
The 30-share BSE Sensex gained 286.98 points, or 0.37%, to close at 77,656.09. The index had slipped as much as 243 points during the session before recovering in the final hours.
The Nifty 50 also ended higher, rising 115.50 points, or 0.48%, to settle at 24,334.55, reclaiming the 24,300 level.
Crude Oil Falls Below $90
A sharp decline in crude oil prices provided a key boost to the market.
Brent crude fell around 3% to $89.32 per barrel, easing concerns over India’s import bill and inflationary pressure.
Lower oil prices are generally positive for India because the country relies heavily on imported crude. A sustained decline can help reduce energy costs, ease pressure on the current account and potentially support the rupee.
Late Buying Changes Market Direction
The domestic market remained under pressure for much of the session before buying picked up toward the close.
Investors used the weakness to accumulate select beaten-down stocks, helping both major benchmarks finish in positive territory despite continued geopolitical uncertainty.
IT, Banking and Other Stocks Gain
Several heavyweight stocks supported the recovery.
Infosys, Reliance Industries and ICICI Bank were among the stocks contributing to the Nifty’s gains. Healthcare, PSU banks and IT shares also advanced, while some private banking and metal stocks remained under pressure.
Among Sensex constituents, InterGlobe Aviation, Adani Ports, Infosys, Trent, Titan and State Bank of India were among the notable gainers.
First Monthly Expiry Under New Auction System
The market’s recovery came on an important derivatives-expiry day.
August 25 marked the first monthly Nifty 50 expiry under India’s new Closing Auction Session (CAS) framework. The new system contributed to heightened trading activity and sharper movements toward the end of the session as traders adjusted positions.
US-Iran Tensions Remain in Focus
Despite the fall in crude, geopolitical risks remain an important factor for investors.
Recent US sanctions targeting Iran had initially raised concerns about energy supplies and global inflation. However, the measures were viewed as less disruptive to oil markets than some investors had feared, contributing to the decline in crude prices.
Foreign Investor Buying Supports Sentiment
Foreign institutional investors also provided some support to Indian equities.
FIIs bought Indian shares worth around Rs 1,181.66 crore in the previous session, according to exchange data.
Broader Market Mixed
The broader market showed a mixed trend.
The BSE 150 MidCap Index rose around 0.37%, while the BSE 250 SmallCap Index declined about 0.17%. Market breadth remained slightly negative, with more stocks declining than advancing on the BSE.
What Investors Are Watching
Investors are likely to keep a close watch on:
- Crude oil prices
- US-Iran geopolitical developments
- Foreign fund flows
- The performance of the rupee
- US Treasury yields
- The new closing-auction mechanism
- Global equity markets
A continued decline in crude could provide further relief to Indian equities, although geopolitical developments and elevated market volatility remain key risks.