Monthly Market Review: August 2026
    Topic Index
    Month at a glanceEquity and sectorsDebt and ratesMutual fund flows (AMFI, August 2026)Gold, silver and globalWhat investors may noteThe month ahead (September 2026)
    MarketsText

    Monthly Market Review: August 2026

    SERNET Research Desk1 September 20262 min read

    What drove August 2026? Large caps slipped about 1% as crude stayed near $90, while mid and small caps rose and SIPs hit a record ₹32,297 crore.

    *This review was published retrospectively in November 2026 and is dated to the start of the following month. Some figures, such as AMFI flows, were released after month end and are included for completeness. Index returns are as reported in HSBC Mutual Fund's monthly Equity Market Review unless stated otherwise.*


    Month at a glance


    IndicatorAugust 2026
    BSE Sensex−1.3%
    Nifty 50−1.1%
    NSE Midcap 150+1.8%
    NSE Smallcap 250+2.6%
    Brent crudeAbout $90.5/bbl
    RBI repo rate5.25%, held on 5 August
    SIP contributions₹32,297 crore (record)

    Equity and sectors


    Large caps slipped in August, while mid-caps and small-caps continued to outperform. High oil prices, renewed geopolitical tension, a heavy pipeline of new share sales and promoter selling all weighed on the benchmarks.


    Metals, Capital Goods and Telecom were the best performers. Banks, IT, Healthcare and Autos also ended the month higher. FMCG, Utilities, Infrastructure and Energy were the weakest.


    Foreign investors put in about $2.4 billion during the month. For 2026 as a whole, they were still heavy net sellers.


    Debt and rates


    At its 3–5 August meeting, RBI kept the repo rate at 5.25% with a neutral stance, its fourth hold in a row. It pointed to steady domestic activity, but said high crude prices remained a risk to inflation.


    Mutual fund flows (AMFI, August 2026)


    MetricAugust 2026July 2026
    SIP contributions₹32,297 crore₹31,961 crore
    Net equity fund inflows₹29,329 crore₹24,697 crore
    Industry AUM₹87.08 lakh crore₹85.76 lakh crore
    Debt scheme AUM₹19.33 lakh croreBroadly stable

    • Equity funds received net inflows for the 66th month in a row. Small-cap funds led, with about ₹7,973 crore.
    • Gold ETF assets rose about 10% and silver ETF assets about 10% in the month.
    • New SIP registrations were strong, at about 66 lakh.

    Gold, silver and global


    • Gold and silver ETFs drew strong interest as investors sought safety.
    • Brent crude stayed near $90 a barrel. It was up almost 49% for the year so far.

    What investors may note


    • Money is still pouring into small-cap funds. These funds suit long horizons and higher risk tolerance; they can fall sharply.
    • More money in gold and silver shows investors want diversification. Keep precious metals as a measured part of your portfolio.
    • Low interest rates help borrowers, but persistent oil-driven inflation could change RBI's direction.

    The month ahead (September 2026)


    • CPI inflation for August: mid-September
    • US Federal Reserve decision: mid-September
    • AMFI August data: around 10 September
    • Oil and geopolitical developments

    *Sources: HSBC Mutual Fund Equity Market Review (August 2026), RBI, AMFI monthly data and notes (August 2026), CNBC TV18. Figures are rounded.*

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