Key gauges end lower as Middle East peace hopes fade

Indian equity benchmarks ended lower on Tuesday, extending their losing streak, as elevated crude oil prices and fading hopes of a diplomatic breakthrough in the Middle East weighed on investor sentiment. Brent crude climbed above $90 a barrel, while rising US Treasury yields added to concerns over global inflation and foreign fund flows.

Both the Sensex and Nifty were ended over half percent lower, pressured by selling in IT, TECK and Realty stocks. Market sentiment was further weighed down by exchange data showing that Foreign Institutional Investors (FIIs) sold equities worth Rs 2,535.10 crore on a net basis on Monday.

Some of the important factors in trade: Ind-Ra projects India's GDP growth to slow down to 6.8% in FY27 : Citing risks from fuel and food inflation stemming from West Asia conflict's uncertainty, weak currency, and the likely impact of El Nino on agriculture, India Ratings & Research (Ind-Ra) has projected India's GDP growth to slow down to 6.8 per cent in FY27, as against 7.6 per cent in the previous year. India’s unemployment rate falls to four-month low of 5.1% in July: Periodic Labour Force Survey (PLFS) has showed that India's unemployment rate (UR) for persons aged 15 years and above fell to a four-month low of 5.1 per cent in July 2026, from 5.5 per cent in June 2026.

Government approves 31 new ECMS projects: The government of India has approved 31 new proposals under the Electronics Component Manufacturing Scheme (ECMS), involving investments worth Rs 7,877 crore. With these approvals, the total number of projects cleared across five tranches has reached 106, with cumulative investments exceeding Rs 69,000 crore.

India accelerates defence self-reliance with sixth positive indigenisation list: India has further strengthened its defence indigenisation drive with the notification of the sixth Positive Indigenisation List (PIL), comprising 405 strategically important items and offering an estimated business opportunity of Rs 3,070 crore. Global front: European markets were trading mostly in red, while Asian markets ended mixed as elevated oil prices and rising bond yields amid fading hopes for a deal to end the Iran-U.S.

war stoked inflation concerns. Finally, the BSE Sensex fell 492.70 points or 0.63% to 77,235.46 and the CNX Nifty was down by 132.75 points or 0.55% to 24,154.90.