Closing Bell: Nifty 50 Ends Flat, Sensex Rises 374 Points on Earnings Optimism

Indian benchmark indices ended mixed on August 6 as optimism over a stronger-than-expected June-quarter earnings season and hopes of easing geopolitical tensions in the Middle East offset global uncertainty. While the Nifty 50 ended almost unchanged after a rangebound session, the Sensex extended its gains, supported by heavyweight stocks.

The Nifty 50 opened at 24,641 and climbed to an Intraday high of 24,677.05 before giving up most of its gains. The index remained largely rangebound through the day and found buying support near the 24,600 mark. It eventually settled at 24,636, up 11.35 points, or 0.05 per cent. The Sensex advanced 373.76 points, or 0.48 per cent, to close at 78,954.76. Meanwhile, the Bank Nifty declined 0.56 per cent, extending its losses for a second straight session. India VIX remained steady around the 12 mark, indicating subdued market volatility.

Global sentiment remained supported as Brent crude continued to trade below the USD 80 per barrel mark. Brent crude was up 0.5 per cent at USD 79.84 per barrel, while WTI crude gained 0.2 per cent to USD 75.38 per barrel. Investors tracked ongoing negotiations between Iran and Oman over reopening the Strait of Hormuz, with reports suggesting both sides were working towards a draft agreement. However, gains in crude prices remained limited after U.S. crude inventories unexpectedly increased by 2.5 million barrels.

The broader market delivered a mixed performance. The Nifty Midcap 100 index declined 0.44 per cent, while the Nifty Smallcap 100 index rose 0.48 per cent to scale a fresh record high.

Sectoral performance was largely subdued, with only three of the 11 major sectoral indices ending in positive territory. The Nifty PSU Bank index emerged as the top performer, rising 2.2 per cent for a second consecutive session, led by a gain of more than 3.5 per cent in Union Bank. On the other hand, the Nifty Realty index was the worst-performing sector, falling 1.32 per cent as Lodha Developers declined more than 2.5 per cent.

Among individual stocks, Navin Fluorine surged 13.67 per cent after reporting a doubling of its June-quarter net profit compared with a year ago. Neuland Laboratories climbed 7.95 per cent after posting a nearly ten-fold jump in quarterly profit, making both stocks among the Top Gainers of the day.

Reliance Industries made the biggest positive contribution to the Nifty 50, adding 66.27 points to the index. State Bank of India contributed 27.04 points, while ICICI Bank added 11.57 points. On the downside, Bharti Airtel was the largest drag, shaving 20.37 points off the index, followed by Power Grid Corporation of India, which contributed negatively by 10.91 points, and Kotak Mahindra Bank, which dragged the index lower by 9.64 points.

Market breadth remained slightly negative. Of the 3,478 stocks traded on the NSE, 1,668 advanced, 1,672 declined and 104 remained unchanged. During the session, 144 stocks touched their 52-week highs, while 46 stocks hit their 52-week lows. Additionally, 123 stocks were locked in their Upper Circuits and 92 stocks ended in Lower Circuits.

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