Market Wrap: Sensex, Nifty Slip on Geopolitical Caution as Wall Street Notches Third Straight Winning Week; Kospi, Nikkei Roar Back on Cooling US Inflation; Gold Near Record Highs
Global markets sent mixed signals this week: Wall Street logged its third consecutive weekly gain after cooler-than-expected US inflation data, and Japanese and South Korean stocks staged a powerful tech-led rebound, while Indian benchmarks and Chinese markets lagged amid persistent geopolitical caution over West Asia. Gold continued its relentless climb in India, trading near record levels as investors sought safety amid the uncertainty.
Indian Markets: Sensex, Nifty End Lower for the Week on Inflation Data, West Asia Risk
The BSE Sensex closed Friday's session at 78,009.25, down 70.71 points or 0.09%, while the NSE Nifty 50 slipped 29.85 points (0.12%) to end at 24,366.00, as oil prices rose after the US threatened to maintain its naval blockade of the Strait of Hormuz indefinitely. For the week, the Sensex declined 489.92 points, or 0.6%, while the Nifty fell 204.65 points, or 0.83%, as investors turned cautious amid inflation data, foreign investor outflows, and the lack of progress toward a US-Iran peace deal. The broader market was more resilient, with the Nifty Midcap 100 gaining 0.50% even as the Nifty Smallcap 100 slipped 0.65%.
Sectorally, metals were among the weakest performers, with auto, energy, FMCG, pharma and realty stocks also under pressure, while consumer durables and media shares bucked the trend. Stocks such as Apollo Hospitals, Bharat Electronics, Dr Reddy's, Titan, Eternal, Bajaj Finance and Wipro found buying interest, while Tata Motors' passenger vehicle arm, Hindalco, Max Healthcare, Jio Financial and SBI were among the top laggards. On the macro front, India's wholesale price inflation eased marginally to 9.78% in July from 9.87% in June, though prices of primary articles and manufactured products stayed elevated. India's volatility index, the Nifty VIX, fell nearly 7% as investors continued to hope for a breakthrough in US-Iran talks.
Asian Markets: Kospi, Nikkei Roar Back as China, Hong Kong Lag
Asian markets diverged sharply this week, with Japan and South Korea staging a powerful technology-led rally even as Chinese and Hong Kong stocks lagged. South Korea's Kospi surged 2.41% on Friday to close at 6,977.34, capping an extraordinary 11.5% weekly gain that snapped a seven-week losing streak, as memory chipmakers SK Hynix, Samsung Electronics and Kioxia rallied on renewed optimism over supply deficits extending into 2027 and roughly $2 billion in foreign capital returning to the market after months of outflows.
Japan's Nikkei 225 climbed 0.59% on Friday to 68,713.80, marking its best weekly performance in about two months, powered by continued buying in semiconductor, AI and earnings-backed shares alongside a broadening rally into financials, materials and industrials. By contrast, the mood was weaker in Greater China: Hong Kong's Hang Seng declined roughly 1% to around 25,137.87, while the Shanghai Composite eased about 0.5% to near 3,908.05, as investors continued to weigh China's economic outlook, property-sector conditions, and the prospects for further stimulus from Beijing.
US Markets: S&P 500 Notches Third Straight Winning Week Despite Friday Pullback
US equities logged a third consecutive weekly gain even as stocks slipped on Friday, with the S&P 500 easing about 0.17% to close near 7,785, the Nasdaq Composite falling 0.28% to 26,729.16, and the Dow Jones Industrial Average dropping 107.58 points, or 0.20%, to 53,732.41. For the week, the S&P 500 rose approximately 0.4%, the Nasdaq gained around 0.1%, while the Dow slipped about 0.6%.
The week's key driver was cooler-than-expected inflation data: July's Consumer Price Index rose just 0.1% month-on-month, with the annual rate holding at 3.4%, while July producer prices also came in softer than forecast — pushing the S&P 500 to a fresh record closing high above 7,800 on Thursday and sharply reducing expectations of a Federal Reserve rate hike in September. Friday's pullback came after a weaker-than-expected preliminary University of Michigan consumer sentiment reading of 51.0 (down from 55.2 in July) and a surprise 0.6% drop in July retail sales, which reignited concerns about the health of the American consumer even as inflation worries eased.
Crude Oil: Prices Fall Mid-Week Before Rebounding on Hormuz Blockade Threat
Oil prices were volatile through the week. Brent crude fell more than 2% on Thursday to settle around $86.50-87.07 per barrel, while WTI crude slid a similar amount to near $81.25 a barrel, as traders weighed softening oil demand amid the ongoing US-Iran conflict. However, prices firmed again by Friday, with Brent trading back near $87 a barrel after the US signaled it would maintain its naval blockade of Iranian ports indefinitely, keeping supply-side risk firmly in focus for the week ahead.
Gold and Silver Prices in India Today
Gold continued its remarkable rally in India this week, trading near record highs and remaining a preferred safe-haven asset amid ongoing geopolitical and economic uncertainty. As of today:
- 24-carat gold: approximately ₹15,290-15,460 per gram (around ₹1,52,900-1,54,600 per 10 grams)
- 22-carat gold: approximately ₹14,015-14,220 per gram
- 18-carat gold: approximately ₹11,467-12,001 per gram
- Silver: approximately ₹2,33,000-2,36,790 per kilogram
Gold has risen nearly 8% over the past month alone and is up around 53% over the past year, reflecting sustained investor demand for safe-haven assets amid volatile equity markets and persistent geopolitical risk. Prices vary by city due to local levies and making charges, with Chennai typically recording the highest rates. These figures exclude GST and other applicable charges — given how elevated and fast-moving prices are right now, it's worth checking a live rate before publishing.
Rupee and Currency Markets
The Indian rupee remained under mild pressure this week, with the US dollar edging higher to around ₹95.4-95.65 by Friday, supported by persistent dollar demand from importers even as near-daily intervention by the Reserve Bank of India helped cushion the rupee's decline. A pullback in crude oil prices mid-week offered some relief, though renewed oil strength by Friday kept the currency in a narrow, cautious range.
Against other major currencies, the rupee stood at approximately:
- 1 US Dollar (USD) ≈ ₹95.6
- 1 Euro (EUR) ≈ ₹109.8
- 1 British Pound (GBP) ≈ ₹128.9
- 100 Japanese Yen (JPY) ≈ ₹60.6
Outlook
With US inflation data continuing to trend favorably and rate-cut hopes intact, the broader macro backdrop remains supportive for risk assets, even as Friday's weak consumer data serves as a reminder that the US economy isn't out of the woods. In India, investors will keep a close watch on the ongoing West Asia conflict, crude oil price swings, and further clarity on the RBI's proposed loan interest-rate framework, while in Asia, the key question is whether the sharp Korean and Japanese tech rebound can be sustained, or whether China and Hong Kong's more cautious tone proves to be the more accurate read on regional risk. Gold's persistent strength suggests many investors remain unconvinced that the coast is fully clear.
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*Note: Intraday prices for gold, silver, currencies, and crude fluctuate through the trading session — figures above reflect rates as reported through Friday, August 14, 2026.*