Manus on Markets: UAE halts trade and financial transactions with Iran

Equity markets in India experienced a downturn on Wednesday (August 19, 2026) due to a surge in crude oil prices and lingering geopolitical concerns. The benchmark Sensex fell 166.19 points to 77,070.93, while the Nifty declined 59 points to 24,096.75. Tata Steel, Larsen & Toubro, Bajaj Finance, Bharat Electronics, Power Grid, and Mahindra & Mahindra were among the worst performers.

On the brighter side, HCL Tech, Infosys, Eternal, Sun Pharma, and Kotak Mahindra Bank led the gainers. Brent crude oil prices rose 0.67% to $91.63 per barrel, prompting global market risk aversion. The temporary 60-day U.S.-Iran ceasefire, without any substantive diplomatic progress, has intensified fears of prolonged disruptions to energy supplies.

This has led to a rise in long-term U.S. Treasury yields to record levels. The combination of higher crude prices and escalating bond yields has created a broad risk-averse sentiment across global financial markets. The mild market weakness is attributed to these two primary factors: the upward trajectory of crude prices and the global surge in bond yields.

Brent crude's upward trend can be traced back to Middle East conflicts, with the uncertainty surrounding the war's outcome contributing to the current situation. Foreign Institutional Investors (FIIs) invested ₹1,651.53 crore in equities on Tuesday (August 18, 2026). The Sensex declined for the third consecutive day, settling at 77,235.46, while the Nifty registered its sixth day of losses, closing at 24,154.90.