Closing Bell: Nifty 50 Falls Nearly 0.5% as HDFC Bank Drags; Pharma Hits Record High

Market Update at 03:55 PM: Indian equity benchmarks ended lower on August 27, despite gains across broader Asian markets, as selling in heavyweight stocks, particularly HDFC Bank, weighed on sentiment. The decline in HDFC Bank followed reports of a U.S. class-action lawsuit, offsetting some support from softer crude oil prices and hopes of easing tensions in the Middle East.

The Nifty 50 opened at 24,277.60 and touched an Intraday high of 24,297.45. However, the index remained under pressure for most of the session, trading largely below the 24,200 mark as investors booked profits at higher levels. The Nifty 50 closed at 24,090.85, down 116.90 points, or 0.48 per cent.

The Sensex declined 539.34 points to end at 76,933.60, while the Bank Nifty fell 0.47 per cent. India's VIX jumped more than 6 per cent to around 11.2, indicating a rise in near-term market volatility.

Brent crude oil remained volatile around USD 88 per barrel as markets weighed improving supply prospects against renewed geopolitical risks. Hopes of reduced shipping disruptions through the Strait of Hormuz provided some relief after Iran and Oman discussed a potential revenue-sharing arrangement, although uncertainty remains over the immediate reopening of the route.

Meanwhile, concerns over Russian energy supplies have increased following Ukrainian strikes on refineries and ports, adding to uncertainty in global crude markets.

The broader market also remained under pressure. The Nifty Midcap 100 declined 0.10 per cent, extending its fall for the second consecutive trading session. The Nifty Smallcap 100 fell 0.13 per cent after touching a fresh all-time high during the session.

Sectoral performance remained weak, with only 2 of the 11 Nifty sectoral indices ending in positive territory. The Nifty Pharma index emerged as the top performer, rising 0.84 per cent and hitting a fresh record high. The index extended its gains for the third consecutive trading session.

In contrast, the Nifty PSU Bank index declined 0.94 per cent, snapping a two-day winning streak. All constituents of the index ended the session in negative territory.

Among individual stocks, Bombay Burmah Trading Corporation surged 13.14 per cent after the Supreme Court recalled an earlier observation related to a Rs 4,655 crore lease-rent claim, providing relief to the company.

Bharat Electronics gained 1 per cent after securing orders worth Rs 730 crore since August 10.

ICICI Prudential AMC declined 1 per cent after its promoter, British insurer Prudential Plc, planned to sell up to a 2 per cent stake in the company to help meet minimum public shareholding requirements.

Kotak Mahindra Bank, ICICI Bank and Adani Enterprises provided support to the Nifty 50, contributing 12.01 points, 20.29 points and 4.25 points, respectively.

On the downside, HDFC Bank was the biggest drag, reducing the index by 54.07 points. Reliance Industries and Bharti Airtel weighed further on the benchmark, dragging it down by 23.01 points and 16.15 points, respectively.

Market breadth remained firmly in favour of declining stocks on August 27. Of the 3,619 stocks traded on the NSE, 1,341 advanced, while 2,160 declined and 118 remained unchanged.

A total of 106 stocks touched their 52-week highs, while 74 stocks hit their 52-week lows. Meanwhile, 109 stocks were locked in their Upper Circuits and 92 stocks were locked in their Lower Circuits.

Market Update at 2:20 PM: The Indian equity benchmarks erased their early gains in afternoon trade on Thursday, August 27, as selling pressure in cement, FMCG and PSU bank stocks weighed on market sentiment.

At around 2:00 PM, the Sensex was down 270.13 points, or 0.35 per cent, at 77,202.81. The Nifty 50 declined 75.70 points, or 0.31 per cent, to trade at 24,132.05.

Among the Nifty 50 constituents, HDFC Bank, Hindalco Industries and Shriram Finance emerged as the Top Losers, contributing to the weakness in the benchmark index.

The broader market also traded with a negative bias. The Nifty MidCap index was down 0.05 per cent, while the Nifty SmallCap index declined 0.06 per cent.

Sectorally, the Nifty PSU Bank, Nifty Oil and Gas and Nifty FMCG indices were among the major underperformers. On the other hand, the Nifty Private Bank, Nifty Consumer Durables and Nifty Pharma indices traded in positive territory, providing some support to the market.

Market Update at 12:30 PM: Indian equity benchmarks remained under pressure in afternoon trade on Thursday, with selling in cement, FMCG and PSU bank stocks weighing on market sentiment.

As of 12:30 PM on August 27, the Sensex declined 240.81 points, or around 0.31 per cent, to 77,242.13. The Nifty 50 fell 54.50 points, or 0.23 per cent, to 24,153.25.

The weakness extended to the broader market as well. The Nifty Midcap index was down 0.05 per cent, while the Nifty Smallcap index declined 0.06 per cent.

Among sectoral indices, the Nifty PSU Bank, Nifty Oil & Gas and Nifty FMCG indices emerged as the key laggards. On the other hand, the Nifty Private Bank, Nifty Consumer Durables and Nifty Pharma indices traded with gains, providing some support to the market.

HDFC Bank remained under pressure following reports of a U.S. class-action lawsuit involving the lender and two senior executives, which affected investor sentiment. Bharat Electronics was also in focus after fresh order-related developments, while Bombay Burmah Trading Corporation witnessed strong buying interest following favourable developments.

Meanwhile, ICICI Prudential AMC continued to attract investor attention amid reports that a promoter plans to sell a stake to comply with minimum public shareholding requirements.

Market Update at 10:50 PM: The Nifty 50 and Sensex were trading lower after giving up their early gains as investors assessed Nvidia Corp.'s earnings, U.S. inflation data and developments in West Asia for fresh cues on monetary policy and global market sentiment.

At 10:36 AM, the Nifty 50 was down 20.40 points, or 0.08 per cent, at 24,187.35, while the Sensex declined 111.28 points, or 0.14 per cent, to 77,361.66.

In the broader markets, the Nifty MidCap and Nifty SmallCap indices continued to trade higher, gaining 0.36 per cent and 0.31 per cent, respectively. Among sectors, Nifty Metal and Nifty Realty outperformed, while Nifty Auto and Nifty Cement underperformed.

IT stocks remained in focus following Nvidia's better-than-expected quarterly performance, which supported technology stocks across Asian markets. Investors continued to track strong artificial intelligence-related demand, improving sentiment towards the global technology sector.

Auto and metal stocks also traded positively amid improved risk appetite and softer commodity concerns. Meanwhile, FMCG and select consumer stocks remained under pressure after selling in the previous session. IT stocks had earlier faced pressure over higher U.S. visa-related costs and concerns surrounding AI-led disruption.

In stock-specific action, Reliance Industries remained under pressure after weighing on the market in the previous session. IT majors continued to attract attention following global technology developments, while banking stocks such as SBI and ICICI Bank remained in focus after showing relative strength in recent sessions. SBI had gained 0.65 per cent in the previous session despite broader market weakness, while Bajaj Finance also ended higher.

Market Update at 09:30 AM: The Nifty 50 and Sensex opened marginally higher on Thursday, August 27, amid mixed global cues. Investors are assessing Nvidia Corp.'s earnings and the latest U.S. inflation data for signals on the monetary policy outlook, while developments in West Asia remain in focus.

As of 9:23 AM, the Sensex was nearly flat at 77,474.80, while the Nifty 50 gained 17.85 points, or 0.07 per cent, to 24,225.60.

In the broader market, the Nifty MidCap and Nifty SmallCap indices were trading 0.36 per cent and 0.31 per cent higher, respectively, indicating a positive trend among mid- and Small-Cap stocks.

The IPOs of Lumino Industries and Kwick Forensic Solutions opened for subscription on Thursday. Investors will track subscription trends and demand for both issues during the bidding period.

Meanwhile, the Annu Projects IPO entered its final day of subscription. The book-built issue has a total size of Rs 175.06 crore.

The Rs 53.40-crore IPO of Sumax Engineering also entered its final day of subscription on Thursday.

Pre-Market Update at 7:40 AM: The Indian stock market is likely to open on a cautious to negative note on Thursday, August 27, after the benchmark indices ended lower in the previous session. Global cues, including GIFT Nifty, Asian market trends, Nvidia's earnings, crude oil prices and developments in the Strait of Hormuz, are expected to influence investor sentiment.

On Wednesday, the Sensex fell 183 points, or 0.24 per cent, to close at 77,472.94, while the Nifty 50 declined 127 points, or 0.52 per cent, to settle at 24,207.75. The market witnessed profit booking after early gains, although buying interest in banking stocks helped Bank Nifty outperform. Meanwhile, the Nifty Midcap 100 index touched a fresh record high.

GIFT Nifty was trading around 24,360, down nearly 35 points from the previous close of Nifty futures. The trend indicated a subdued to negative start for domestic benchmark indices.

Asian markets moved higher on Thursday after Nvidia's strong outlook supported optimism surrounding artificial intelligence and technology stocks. MSCI's Asia-Pacific index rose 0.6 per cent in early trade.

South Korea's Kospi surged 2.22 per cent, while Japan's Nikkei 225 gained 0.41 per cent and the broader Topix index advanced 0.32 per cent. However, Hang Seng futures moved lower by 0.2 per cent, indicating mixed sentiment across the region.

U.S. stock futures moved higher after Nvidia and other major technology companies reported their latest earnings. Dow Jones futures gained around 242 points, or 0.5 per cent, while S&P 500 futures rose 0.6 per cent.

Nasdaq 100 futures outperformed, advancing 1.07 per cent. However, the three major U.S. indices ended Wednesday's regular trading session largely unchanged as investors remained cautious ahead of the Federal Reserve's Jackson Hole symposium.

Nvidia reported stronger-than-expected quarterly earnings, providing support to global technology and artificial intelligence stocks. The company reported revenue of USD 96.22 billion, more than double from the previous year and above analysts' estimates of USD 92.17 billion.

Its earnings per share stood at USD 2.22, compared with market expectations of USD 2.10. For the third quarter of fiscal 2027, Nvidia forecast revenue of around USD 108 billion, with a possible variation of 2 per cent in either direction.

The company also indicated that customer projections point towards strong growth ahead, reinforcing optimism over continued investment in artificial intelligence infrastructure.

Geopolitical developments in the Middle East continue to remain a key factor for global markets. Iran and Oman are reportedly working on the details of an arrangement related to the control and regulation of the Strait of Hormuz.

The strategic waterway is crucial for global energy supplies, as it handled oil and natural gas shipments accounting for nearly one-fifth of global consumption before the conflict. Any progress towards easing disruptions could improve global energy supply conditions and reduce pressure on crude oil prices.

Crude oil prices declined for another session amid expectations that progress in negotiations could eventually ease supply disruptions in the Strait of Hormuz.

Brent crude futures fell 0.7 per cent to USD 87.24 per barrel, extending their losing streak to four consecutive sessions. West Texas Intermediate crude declined 0.7 per cent to USD 81.67 per barrel and remained under pressure for the fifth straight session.

Lower crude oil prices could provide some relief to India's inflation and current account concerns, although geopolitical developments remain a key risk for energy markets.

Gold prices steadied near USD 4,600 per ounce as investors assessed inflation concerns and awaited signals from the Federal Reserve at the Jackson Hole symposium.

Spot gold rose 0.5 per cent to USD 4,615.27 per ounce, while U.S. gold futures gained 0.4 per cent to USD 4,669.50. Gold had declined sharply in the previous session after inflation data strengthened expectations that interest rates could remain elevated.

Foreign institutional investors (FIIs/FPIs) turned net buyers in the cash segment on August 26, purchasing equities worth Rs 502.63 crore. Domestic institutional investors (DIIs) remained strong buyers, recording net equity purchases of Rs 6,425.16 crore.

Overall, domestic markets are likely to take cues from global equity trends, Nvidia's earnings, crude oil movements and developments in the Middle East. Investors will also closely monitor signals from the Federal Reserve's Jackson Hole symposium for clarity on the future path of U.S. interest rates.

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

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