Closing Bell: Nifty 50 Ends Below 24,100 as Brent Crude Hits $91; HDFC Bank, Zee Entertainment Drag

Market Update at 04:00 PM: Indian equity benchmarks ended lower on Monday, August 31, as rising crude oil prices, U.S.-Iran tensions and concerns over potential U.S. rate hikes weighed on sentiment. Investors also remained cautious ahead of potential volatility from an MSCI index rejig and the implementation of the country's new stock closing system.

The Nifty 50 opened at 24,117.55 and slipped to an Intraday low of 23,993.60. The index remained below the 24,100 mark for most of the session and faced selling pressure around the 24,100-24,150 zone. However, a recovery from the day's low helped the index close above 24,000, which continues to act as an immediate support level.

At the close, the Nifty 50 settled at 24,080.40, down 95.25 points, or 0.39 per cent. The Sensex declined 307.23 points to 76,957.28. In contrast, the Bank Nifty gained 0.93 per cent. India VIX jumped nearly 4.8 per cent and moved above the 11 level, indicating increased market volatility.

Global sentiment remained under pressure as U.S. forces reportedly struck two Iranian launchers, marking the first known American strikes on Iran since late July. The development pushed Brent crude prices higher by 3.33 per cent to USD 91.25 per barrel.

Crude prices were also supported by concerns over the potential impact of geopolitical tensions on global energy supplies. Meanwhile, comments from U.S. Federal Reserve Chair Kevin Warsh increased concerns over the possibility of a near-term rate hike in the world's largest economy, adding to pressure on risk assets.

The broader market ended on a mixed note. The Nifty Midcap 100 index gained 0.24 per cent, extending its recent gains, while the Nifty Smallcap 100 index declined 0.74 per cent.

Sectoral performance was largely negative, with only four of the 11 Nifty sectoral indices ending in positive territory. The Nifty Bank index gained 0.93 per cent, recording its biggest gain in three weeks, with nine of the 15 banking stocks closing higher. In contrast, the Nifty Media index declined 2.84 per cent, marking its steepest fall in three weeks. The index also touched its 50-DEMA during Monday's session.

HDFC Bank share price declined 1.57 per cent after Managing Director and CEO Sashidhar Jagdishan decided not to seek another term at the helm of the country's largest private sector lender. The stock had initially gained around 2 per cent in early trade before reversing its gains.

Ather Energy share price jumped 6.27 per cent after the company launched the Konarc electric scooter, marking its entry into India's mass-market electric two-wheeler segment.

Zee Entertainment share price declined 7.81 per cent after Canara Bank, Union Bank of India and LIC Housing Finance decided to challenge the NCLT-approved repayment plan of Zee Group founder Subhash Chandra. Under the plan, creditors would receive Rs 6.25 crore against admitted claims of Rs 22,006.57 crore.

ICICI Bank was the biggest contributor to the Nifty 50's performance, adding 48.73 points to the index. Axis Bank and Sun Pharmaceutical Industries followed with contributions of 21.91 points and 15.32 points, respectively. On the downside, Bharti Airtel dragged the index by 47.88 points, followed by HDFC Bank with a negative contribution of 37.73 points. Adani Enterprises also weighed on the index, dragging it down by 22.86 points.

Market breadth remained negative on August 31. Out of 3,641 stocks traded on the NSE, 1,340 advanced, while 2,204 declined and 97 remained unchanged.

A total of 151 stocks touched their 52-week highs, while 132 stocks hit their 52-week lows. Meanwhile, 121 stocks were locked in their Upper Circuits and 118 stocks were locked in Lower Circuits.

Market Update at 2:40 PM: The Nifty 50 and Sensex extended losses on Monday as rising crude oil prices and concerns over a possible U.S. rate hike dented risk sentiment. As of 2:29 PM, the Nifty 50 was down 149.90 points, or 0.62 per cent, at 24,025.75, while the BSE Sensex declined 433.52 points, or 0.56 per cent, to 76,830.99.

Adani Enterprises, Adani Ports and Special Economic Zone, and Tata Steel were among the biggest losers on the Nifty 50. In the broader market, the Nifty MidCap and Nifty SmallCap indices were trading 0.61 per cent and 0.55 per cent lower, respectively.

Sector-wise, Nifty Metal, Nifty IT, Nifty Cement and Nifty Media underperformed, while Nifty Private Bank emerged as the better-performing sector.

Ashoka Buildcon was a standout stock, rising as much as 15 per cent after receiving a Letter of Acceptance worth Rs 602.16 crore from Rail Vikas Nigam for an electro-mechanical systems project involving Railway tunnels in Uttarakhand.

HDFC Bank remained in focus after MD and CEO Sashidhar Jagdishan decided not to seek reappointment. He is set to retire on October 26, while the bank's board has initiated the process to identify his successor.

Lenskart Solutions gained around 3.8 per cent as investors positioned themselves ahead of its inclusion in the MSCI Global Standard Index from September 1. Laurus Labs and Adani Energy Solutions, which are also part of the index reshuffle, moved lower during the session.

Northern Arc Capital also attracted investor attention after a Rs 335 crore block transaction sent the stock up as much as 11.4 per cent.

Market Update at 12:30 PM: The Indian equity market traded lower on Monday as rising oil prices and concerns over a possible U.S. interest rate hike weighed on investor sentiment. Selling pressure was visible across benchmark and broader market indices.

As of 12:00 PM, the Sensex declined 225.87 points, or 0.29 per cent, to 77,038.64, while the Nifty 50 fell 97.20 points, or 0.4 per cent, to 24,078.45.

Among Nifty 50 stocks, Hindalco Industries, Infosys and Adani Enterprises emerged as the Top Losers, dragging the benchmark lower.

Broader markets also remained under pressure, with the Nifty MidCap and Nifty SmallCap indices declining 0.61 per cent and 0.55 per cent, respectively. Sectoral performance was mixed, with the Nifty Metal, Nifty IT, Nifty Cement and Nifty Media indices underperforming. Meanwhile, the Nifty Bank and Nifty Private Bank indices outperformed the broader market.

Market Update at 10:45 PM: Indian equities remained firmly under pressure in late morning trade, with the Nifty 50 down 172.80 points, or 0.71 per cent, at 24,002.85, while the Sensex declined 498.74 points, or 0.65 per cent, to 76,765.77 as of 10:43 AM IST. The Nifty is now hovering just above the crucial 24,000 mark, keeping traders cautious about the next move.

The broader market was also witnessing selling pressure, with mid and small cap stocks underperforming the frontline indices. The weakness suggests that risk aversion is spreading beyond index heavyweights, with investors trimming positions across several pockets of the market.

Metal stocks remained among the weaker areas of the market, while IT stocks also faced pressure after their recent gains. PSU banking stocks were another weak pocket, with the Nifty PSU Bank index declining more than 1 per cent in early trade. Private banks offered some relative strength, limiting the downside in financials.

Among individual stocks, HDFC Bank gained as much as 2.5 per cent after the bank confirmed that MD and CEO Sashidhar Jagdishan will not seek reappointment. Sterlite Technologies advanced 4.6 per cent to Rs 757.70 after securing a long term contract worth USD 288 million from a leading hyperscaler. On the other side, Hindalco Industries and Adani Enterprises remained among the major laggards, while Infosys also traded lower.

Foreign institutional investors remained net sellers, offloading shares worth Rs 5,039.80 crore on August 28. Domestic institutional investors provided support by buying equities worth Rs 5,183.93 crore. The strong DII buying has helped absorb a sizeable portion of foreign selling pressure, although the market remains sensitive to global risk factors.

Global cues are adding to the cautious mood. Brent crude has moved above USD 90 per barrel amid renewed US Iran tensions and concerns surrounding the Strait of Hormuz. Asian markets are also trading lower, while weakness in US equities and uncertainty over the Federal Reserve's interest rate path are keeping investors defensive.

Market Update at 09:30 AM: The Nifty 50 and Sensex opened lower on Monday as rising crude oil prices and concerns over a potential U.S. rate hike weighed on investor sentiment. The cautious mood led to broad-based selling across key market segments.

As of 9:18 AM, the Sensex declined 276.58 points, or 0.36 per cent, to 76,987.93, while the Nifty 50 fell 117.60 points, or 0.49 per cent, to 24,058.05.

Hindalco Industries, Infosys and Adani Enterprises were among the top losers on the Nifty 50. The broader market also remained under pressure, with the Nifty MidCap and Nifty SmallCap indices trading 0.53 per cent and 0.73 per cent lower, respectively.

Sectoral performance was mixed, with the Nifty Metal, Nifty IT, Nifty Cement and Nifty Media indices underperforming. In contrast, the Nifty Bank and Nifty Private Bank indices outperformed the broader market.

Pre-Market Update at 7:40 AM: Gift Nifty indicated a weak opening for Indian equities on Monday, August 31, as global markets came under pressure following fresh U.S.-Iran tensions and a rebound in crude oil prices.

Asian markets traded lower, led by South Korean equities. The Kospi fell 3.5 per cent, while the Kosdaq declined 3.8 per cent. Japan’s Nikkei 225 dropped 2.16 per cent and the Topix slipped 0.95 per cent. Australia’s S&P/ASX 200 also edged down 0.27 per cent.

Gift Nifty was trading around 24,241, down nearly 71 points from the previous Nifty futures close, signalling a negative start for the Sensex and Nifty 50. On Friday, the Sensex gained 331 points, or 0.43 per cent, to close at 77,264.51, while the Nifty 50 advanced 85 points, or 0.35 per cent, to settle at 24,175.65, ending a two-session losing streak.

U.S. stock futures also declined. Dow Jones futures fell 85 points, or 0.16 per cent, while S&P 500 futures slipped 0.2 per cent. Nasdaq-100 futures also traded lower. Wall Street remained on track to end August with gains, with the Dow up around 2.1 per cent for the month, while the S&P 500 and Nasdaq Composite were higher by around 3 per cent and 4 per cent, respectively.

Geopolitical concerns intensified after U.S. forces targeted two Iranian rocket launchers on Larak Island in the Strait of Hormuz. Iran subsequently retaliated by striking two U.S. air bases in Jordan, according to Iranian media reports citing the Islamic Revolutionary Guard Corps.

The developments raised concerns over possible disruption to shipping through the Strait of Hormuz. The number of visible commodity vessels passing through the waterway fell to around five per day over the weekend, highlighting growing caution among shipping companies.

Crude oil prices rose more than USD 1 a barrel following the latest escalation. Brent crude futures gained 1.23 per cent to USD 89.18 a barrel, while WTI crude advanced 1.10 per cent to USD 84.32 a barrel. The rise came after both Brent and WTI declined more than 4 per cent last week.

Gold prices were largely steady after falling more than 3 per cent in the previous session. Spot gold was at USD 4,455.29 per ounce, while U.S. gold futures for December delivery declined 0.6 per cent to USD 4,504.90.

The precious metal remained under pressure after comments from U.S. Federal Reserve Chair Kevin Warsh indicated that further interest rate hikes may be required.

SAIL and LIC Housing Finance are under the F&O ban for Monday. Securities enter the F&O ban period when their open positions cross 95 per cent of the market-wide position limit.

Foreign portfolio investors remained net sellers in the Indian equity market on Friday, offloading shares worth Rs 5,039 crore. Domestic institutional investors, however, provided support by making net purchases worth Rs 5,184 crore.

The Indian rupee strengthened marginally by 2 paise to settle at 95.43 against the U.S. dollar on Friday. The currency tracked softer global crude oil prices and the positive trend in domestic equities.

Indian equities remain vulnerable to global risk-off sentiment, particularly with Asian markets falling sharply and crude oil prices moving higher. Investors will closely track developments around the Strait of Hormuz, crude oil prices, global bond yields and expectations around U.S. monetary policy.

The domestic market had extended its losing streak to three consecutive weeks last week, with sentiment affected by geopolitical uncertainty, crude oil movements and concerns over the U.S. monetary policy outlook. Strong gains in IT stocks following robust Nvidia earnings provided some support towards the end of the week, but weakness in several Large-Cap stocks continued to limit the broader recovery.

Disclaimer: The article is for informational purposes only and not investment advice.

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