Closing Bell: Nifty Ends Lower After 4-Day Rally Ahead of RBI MPC Policy; Sensex Falls 210 Points

Indian equity benchmarks ended lower on Tuesday, August 4, snapping a 4-session winning streak as investors booked profits and turned cautious ahead of the Reserve Bank of India’s (RBI) monetary policy decision and developments around U.S.-Iran talks. The decline reversed part of the previous session’s sharp gains that came after exchanges introduced a new mechanism for closing stock prices.

The Nifty 50 opened at 24,703.90, which remained the day’s high, before facing selling pressure and slipping below the 24,600 mark. Although the index attempted a recovery towards 24,640 during the morning session, weakness continued through most of the day. The index touched an Intraday low of 24,427.95 in afternoon trade before a late recovery helped it regain nearly 190 points from the day’s low.

The Nifty 50 closed at 24,614.90, declining 159.40 points or 0.64 per cent, ending its 4-day winning streak. The Sensex fell 210.07 points or 0.27 per cent to settle at 78,428.96. The Bank Nifty also declined 0.58 per cent, snapping its 2-session rally. India VIX increased 2 per cent and moved above the 12 level, indicating a rise in market uncertainty.

Brent crude prices recovered towards USD 85 per barrel on Tuesday after witnessing a sharp decline in the previous session, as geopolitical concerns surrounding the U.S.-Iran conflict kept investors cautious. U.S. President Donald Trump said his proposal for talks represented Tehran’s final opportunity for a deal and expressed confidence that the Strait of Hormuz would reopen soon. However, Iran denied direct negotiations with the U.S., while confirming progress in discussions with Oman regarding shipping activity through the strait.

Meanwhile, Turkey and Iraq extended a key oil pipeline agreement, Kazakhstan restarted crude flows through the Caspian Pipeline Consortium, and OPEC+ approved another modest production increase as part of its planned supply restoration efforts.

The broader market ended mixed. The Nifty Midcap 100 index declined 0.29 per cent, while the Nifty Smallcap 100 index gained 0.29 per cent.

Sectoral performance remained weak, with only 2 out of 11 major Nifty sectoral indices ending in positive territory. The Nifty Media index was the top gainer, rising 2.03 per cent, supported by gains in Saregama and PVR Inox, which advanced more than 4 per cent. On the other hand, the Nifty Realty index declined 2.39 per cent after a 2-session rally.

Among individual stocks, DLF declined 3.76 per cent after reporting a modest rise in June quarter profit. Several brokerages raised concerns over subdued pre-sales due to limited new launches and lower cash collections.

LIC India shares fell 1.35 per cent after the government announced a 6.5 per cent stake sale through an Offer for Sale (OFS). Meanwhile, Ather Energy shares surged 13.94 per cent to hit a record high after the company reported a narrowing of losses in the June quarter.

The major contributors supporting the Nifty 50 were Hindalco Industries, which added 7.93 points, Apollo Hospitals Enterprise, contributing 5.13 points, and ITC, adding 4.21 points. On the downside, Reliance Industries dragged the index by 41.42 points, followed by HDFC Bank with a negative contribution of 36.75 points and Grasim Industries with 10.05 points.

Market breadth remained slightly negative on the NSE. Out of 3,434 stocks traded, 1,602 advanced, 1,708 declined and 124 remained unchanged. A total of 141 stocks touched their 52-week highs, while 30 stocks hit their 52-week lows. Additionally, 125 stocks were locked in Upper Circuits and 77 stocks were locked in Lower Circuits.

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