Banking Sector

The renewed US-Iran conflict and uncertainty around the Strait of Hormuz are putting oil prices and global markets under pressure. Here’s how prolonged disruption could affect crude, inflation and stock markets in India, the US and Europe.

Sensex and Nifty 50 remain under pressure on August 19, 2026, extending their losing streak amid rising crude oil prices, Strait of Hormuz tensions, higher US Treasury yields, rupee weakness and continued FPI concerns.

Indian banking stocks traded lower after the RBI announced the early closure of its FCNR(B) swap facility. While banks have already mobilised over $52 billion, concerns around future dollar funding, rising bond yields, excess liquidity, crude oil prices and rupee weakness are weighing on investor sentiment.

Indian stock markets traded lower on August 18, 2026, as rising crude oil prices, US-Iran tensions, higher global bond yields and rupee weakness triggered a risk-off mood. Nifty 50 fell to 24,177.20 by 11:30 AM, while investors tracked NSE IPO developments, Lalithaa Jewellery Mart IPO subscription, ICICI Bank and key corporate updates.

The RBI maintained the repo rate at 5.25% and retained its neutral policy stance in the August 2026 MPC meeting. The central bank upgraded FY27 GDP growth to 6.7%, reduced the inflation forecast to 5.0%, and highlighted global geopolitical risks while expressing confidence in India's resilient economy.

Banking shares traded lower with Nifty Bank slipping nearly 1% ahead of the RBI's August 5 monetary policy announcement. While the repo rate is expected to remain unchanged at 5.25%, investors are closely watching the central bank's stance on inflation and future rate cuts.

Indian benchmark indices ended sharply higher on August 3, with the Sensex gaining 544 points and the Nifty closing at 24,774. Strong buying in IT stocks, easing crude oil prices, improving FII sentiment, and the rollout of the new Closing Auction Session (CAS) drove the rally, while investors remained focused on the upcoming RBI policy meeting.

Indian stock markets ended sharply higher on July 29, 2026, with the Sensex gaining 888.68 points and the Nifty closing at 24,250.20. The rally was driven by sustained buying in IT stocks, positive FII inflows, lower market volatility, and expectations of an unchanged US Federal Reserve interest rate. Infosys led the IT surge, while broad-based gains across FMCG, Metals, Pharma, and Financials boosted overall market sentiment.

Indian stock markets remained flat on Tuesday, but IT stocks surged as investors shifted focus from global AI hardware concerns toward Indian software companies. TCS, Tech Mahindra and HCLTech led the rally.

IDFC First Bank shares surged nearly 10% to a fresh 52-week high of ₹88.76 after reporting its highest-ever quarterly profit of ₹1,075 crore in Q1 FY27. The rally was driven by strong loan growth, improving asset quality, higher Net Interest Income, expanding margins, and improved operational efficiency. The bank's strong earnings performance boosted investor confidence despite broader market volatility.