Closing Bell: Nifty 50 Recovers 150 Points From Low; Tata Group Stocks Plunge

Indian equity markets ended lower on Wednesday, August 12, as rising crude oil prices and caution ahead of key domestic and U.S. inflation data weighed on investor sentiment. The Nifty 50 recovered around 150 points from the day's low, limiting its losses, while the Sensex declined for the second consecutive session. Bank Nifty, however, ended higher.

The Nifty 50 opened at 24,472.45 and briefly touched a high of 24,473.30 before coming under sustained selling pressure. The index slipped to an Intraday low of 24,265.95 around midday but recovered sharply in the second half of the session. It closed at 24,435.95, down 35.75 points, or 0.15 per cent.

The Sensex fell 187.90 points, or 0.24 per cent, to 77,966.35. In contrast, the Bank Nifty gained 0.77 per cent. India VIX declined 1.35 per cent and remained below the 12 level.

Brent crude oil prices stayed above USD 89 per barrel on Wednesday, extending gains for a sixth consecutive session as investors monitored developments around a potential U.S.-Iran agreement and uncertainty over the Strait of Hormuz. U.S. President Donald Trump said the U.S. had "total control over the Strait of Hormuz", while negotiations over reopening the key shipping route remained deadlocked.

The uncertainty was partly offset by comments from Pakistan's Defence Minister that Washington and Tehran were close to an arrangement concerning the Strait of Hormuz. Reports also indicated that talks between Iran and Oman had reached an advanced stage, raising hopes of a possible resolution.

Meanwhile, industry data showed that U.S. crude inventories increased by 9.1 million barrels last week, marking their biggest weekly rise since February.

Broader markets ended mixed. The Nifty Midcap 100 index gained 0.28 per cent, while the Nifty Smallcap 100 index declined 0.18 per cent.

Sectoral performance was also mixed, with four of the 11 key sectoral indices ending higher. The Nifty PSU Bank index emerged as the top sectoral gainer, rising 2.05 per cent. Punjab National Bank was among the notable performers, gaining more than 4.34 per cent.

The Nifty IT index was the biggest sectoral laggard, falling 1.54 per cent and snapping its three-day winning streak. TCS declined nearly 3.93 per cent, adding pressure on the IT index and the broader market.

Tata Group stocks came under pressure after Tata Sons Chairman N. Chandrasekaran said he would not seek reappointment when his current term ends on February 20, 2027. TCS fell nearly 3.93 per cent, while the broader decline across Tata Group stocks resulted in a significant erosion in their combined market capitalisation.

Godrej Consumer Products also witnessed sharp selling, plunging nearly 11.22 per cent after the sudden exit of Chief Executive Officer Sudhir Sitapati, just months after his reappointment.

Among the key contributors to the Nifty 50, Bharti Airtel added 20.25 points, while State Bank of India contributed 14.42 points and Hindalco Industries added 9.26 points. On the other hand, TCS dragged the index by 21.36 points, followed by Infosys with an 11.16-point impact and Mahindra & Mahindra with a 10.99-point drag.

Market breadth remained weak on August 12. Of the 3,476 stocks traded on the NSE, 1,504 advanced, 1,868 declined and 104 remained unchanged. A total of 115 stocks touched their 52-week highs, while 60 stocks hit fresh 52-week lows. Meanwhile, 106 stocks were locked in their Upper Circuits and 104 stocks ended at their Lower Circuits.

Overall, Indian markets remained under pressure amid elevated crude oil prices and uncertainty surrounding the Strait of Hormuz, although a late recovery in the Nifty 50 helped limit the day's losses. Investors will now track upcoming domestic and U.S. inflation data for further cues on interest rates and market direction.

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