Closing Bell: Nifty Falls 0.27% as Financials Drag; Brent Crosses $85, Auto Stocks Rally

Indian benchmark indices ended lower on Friday as weakness in financial stocks and rising crude oil prices amid renewed Strait of Hormuz tensions affected investor sentiment. Stock-specific movements driven by quarterly earnings remained the key market trigger, with auto stocks emerging as the top performers.

The Nifty 50 opened at 24,538.90 and moved higher in early trade, reaching an Intraday high of 24,630.40. However, profit booking at higher levels dragged the index lower, keeping it rangebound during the second half of the session. The index touched a low of 24,522.75 before recovering slightly towards the close.

The Nifty 50 ended the session at 24,570.65, declining 65.35 points or 0.27 per cent. The Sensex closed at 78,499.17, down 455.59 points or 0.58 per cent, ending its 2-day winning streak. The Bank Nifty declined 0.55 per cent, while India VIX remained steady around the 12 level.

Despite Friday’s decline, the Nifty 50 gained 0.77 per cent during the week, extending its previous week’s gains. Broader markets remained mixed, with the Nifty Midcap 100 index rising 0.22 per cent, while the Nifty Smallcap 100 index slipped 0.05 per cent. Both indices touched fresh all-time highs during the week.

Brent crude prices crossed USD 85 per barrel on Friday as renewed concerns over the Strait of Hormuz added uncertainty to global oil supplies. Reports indicated fresh tensions near Qeshm Island, with Iran stating that it had targeted “hostile targets” in the region. The rise in crude prices increased pressure on market sentiment.

Among sectors, 6 out of 11 major Nifty sectoral indices closed higher. The Nifty Auto index was the biggest gainer, rising 1.84 per cent to hit a record high. Samvardhana Motherson International surged over 8 per cent, supporting the sector’s performance.

The Nifty Financial Services index was the biggest drag, falling 1.48 per cent. Bajaj Finance declined more than 5 per cent, weighing on the broader index. Nifty PSU Bank gained over 2 per cent, while Nifty Realty remained among the weakest performers.

In stock-specific action, Britannia Industries gained around 2 per cent after reporting quarterly profit growth. Brokerages highlighted strong volume growth, improving market share and healthy revenue growth prospects as key positives. Hero MotoCorp rose 3.14 per cent after reporting a 29 per cent increase in June-quarter profit.

Larsen & Toubro, State Bank of India and Shriram Finance were the top contributors to Nifty 50 gains, adding 17.08 points, 11.08 points and 10.78 points, respectively. On the other hand, HDFC Bank, Reliance Industries and Tata Consultancy Services were the biggest drags, reducing the index by 23.38 points, 16.06 points and 10.46 points, respectively.

Market breadth remained slightly positive on August 7, with 1,685 stocks advancing and 1,664 declining out of 3,468 stocks traded on the NSE, while 119 stocks remained unchanged. A total of 131 stocks touched their 52-week highs, whereas 52 stocks hit their 52-week lows. Additionally, 98 stocks were locked in the Upper Circuit and 87 stocks were locked in the Lower Circuit.

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