Summary
The Sensex rose 628.04 points to close at 77,537.72 and the Nifty 50 gained 153.55 points to end at 24,231.85 on Thursday, 20 August 2026, snapping four day and seven day losing streaks as easing US Treasury yields lifted global risk sentiment.
Nifty Media rose 2.1% and Nifty Realty 1.4% to lead the sectors, with all indices in the green except Chemicals and PSU Bank, while Eternal and Shriram Finance topped the Nifty gainers.
Kronox Lab Sciences hit the 20% upper circuit after Indo Borax & Chemicals agreed to buy a 64.26% stake for ₹246 crore, while PFC and REC fell up to 3% on Morgan Stanley’s growth cuts.
India’s mutual fund assets grew 143% in five years to ₹85.76 lakh crore, and Brent crude jumped 2.13% to $93.57 on fresh US sanctions threats against Iran.
The BSE Sensex snapped a four day declining streak to settle 628.04 points, or 0.82%, higher at 77,537.72. The Nifty 50 halted a seven day losing streak, gaining 153.55 points, or 0.64%, to end at 24,231.85.
The broader market joined the recovery, with both the Nifty Midcap 100 and the Nifty Smallcap 100 ending higher, making it a broad based bounce rather than a narrow index move.
Impact on the stock market
Sectoral gainers: Nifty Media led the pack with a 2.1% rise, followed by Nifty Realty with a 1.4% gain. In a rare show of breadth this month, every sectoral index ended in the green except two.
Sectoral losers: Nifty Chemicals and Nifty PSU Bank were the only sectors to close lower, missing out on the recovery.
| Sector/Index | Performance |
| IT & BPM sector | 0.79% |
| Healthcare sector | 0.32% |
| Oil & Gas sector | 0.01% |
| Real estate sector | 1.41% |
| PSU Bank in India | -0.01% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| Eternal | 327.95 | 2.48 |
| Shriram Finance | 1,128.20 | 2.01 |
| Kotak Mahindra | 397.35 | 1.82 |
| ITC | 271.65 | 1.72 |
| Bajaj Finance | 1,095.00 | 1.37 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| TATA Cons. Prod | 1,056.30 | -1.10 |
| Hindalco | 1,029.85 | -0.88 |
| Interglobe Avi | 5,165.00 | -0.54 |
| HCL Tech | 1,318.40 | -0.48 |
| Nestle | 1,458.00 | -0.48 |
Market aftermath: Impact on stocks
PFC and REC: Down Up to 3% After Morgan Stanley Cuts Estimates
Shares of Power Finance Corporation and REC declined up to 3% after Morgan Stanley cut its growth estimates for both companies. PFC settled 2.9% lower at ₹363.60 on the NSE, while REC fell 2.4% to ₹328.90.
The two companies are merging, with REC shareholders set to receive 88 PFC shares for every 100 held and completion targeted by April 1, 2027, subject to approvals. Morgan Stanley’s view is that the merger could bring some revenue benefits through greater scale and reduced competition, but the scope for cost savings looks limited because both already run low operating costs.
The bigger concern is growth. The brokerage cut PFC’s core earnings per share estimates by 5.5% for FY28 and 7% for FY29, and lowered its FY26 to FY29 loan growth assumption to around 6% a year from around 9%, noting that the gap between the two lenders’ loan growth and bank credit growth to the power sector has widened significantly. It also trimmed REC’s earnings and long term growth assumptions. On the positive side, Morgan Stanley said PFC’s asset quality remains supportive and expects mid teens core return on equity through FY27 to FY29 with stable margins.
Mutual Funds: Assets Up 143% in Five Years as Passive Investing Surges 324%
India’s mutual fund industry has more than doubled in five years, and the composition of that growth tells its own story. Total assets under management rose 143% to ₹85.76 lakh crore in July 2026 from ₹35.32 lakh crore in July 2021, according to ICRA Analytics.
Equity funds grew 224% to ₹38.40 lakh crore, while passive products recorded the sharpest expansion, with ETF and index fund assets surging 324% to ₹15.15 lakh crore. Hybrid schemes rose 183% to ₹11.68 lakh crore. Debt funds, by contrast, grew just 27% to ₹19.46 lakh crore. The investor base has widened dramatically too: total folios jumped to 28.09 crore from 10.55 crore, with passive folios climbing to 5.54 crore from just 0.92 crore.
Ashwini Kumar of ICRA Analytics said investor allocation is undergoing a meaningful structural change, with equity remaining the primary growth engine and passive products gaining relevance as investors seek transparent, cost efficient and diversified exposure. The breadth of the folio growth, he noted, suggests the shift is supported by a wider investor base rather than short term market movements.
Kronox Lab Sciences: A 20% Upper Circuit on the Indo Borax Acquisition
Shares of Kronox Lab Sciences surged 20% to hit the upper circuit after Indo Borax & Chemicals approved the acquisition of a 64.26% stake in the company. Indo Borax shares rose more than 12% during the session as well, a rare case of both sides of a deal rallying.
The board of Indo Borax approved a share purchase agreement to acquire 2.38 crore equity shares from Kronox’s promoters for a total of ₹246 crore, at ₹103.22 per share. The company described the acquisition as part of a long term strategy to diversify into sectors with stability and growth potential, and said it intends to nurture and expand the business of Kronox, which manufactures high purity speciality fine chemicals for diversified industries.
Crude Oil: Past $93 as the US Announces Economic Warfare on Iran
Crude oil futures rebounded from early losses to gain more than 1% on Thursday, marking a fifth straight session of gains for MCX crude as fresh US sanctions threats stoked supply concerns. Brent futures for October delivery rose $1.95, or 2.13%, to $93.57, while WTI climbed 2.22% to $86.26. On the MCX, September crude rose ₹96, or 1.18%, to ₹8,247 per barrel.
US President Donald Trump announced what he called the most crushing economic operation ever taken against any country, warning that any nation allowing its financial institutions, businesses, airports or government entities to provide a lifeline to Iran would face tremendous economic consequences. The announcement came without specifics, analysts noted, but signals a further shift towards economic pressure after the US paused its attacks on Iran last month. Kotak Neo said the market is now pricing in the risk of tighter Iranian crude flows, with the Strait of Hormuz once again the key pressure point, and flagged potential supply disruptions and retaliatory action as the factors to watch.
Conclusion
Thursday broke the losing streak in style, with the Sensex up 628 points, nearly every sector in the green and the broader market participating. But the rally rests on easing US yields while the oil problem got worse, with Brent at $93.57 and Washington promising unprecedented economic isolation of Iran. The five year mutual fund data is a useful reminder for moments like this: through every scare, Indian investors have kept building, taking assets up 143% and passive funds up 324%. Enjoy the bounce, but keep one eye on crude, because the Strait of Hormuz still holds the market’s steering wheel.
