Nifty Records Highest Intraday Loss in last 2-Months; All Sectors End in Red

Market Update at 4:15 PM: On Friday, August 8, Indian benchmark indices closed sharply lower, with the Nifty 50 registering its steepest intraday loss in two months. The index was dragged mainly by Bharti Airtel and HDFC Bank. At the close, the Nifty 50 fell 232.85 points or 0.95 per cent to settle at 24,363.30, while the Sensex slipped 765.47 points or 0.95 per cent to end at 79,857.79. This marked the sixth consecutive weekly loss for the benchmarks, the longest losing streak since 2020.

The fall came after former US President Donald Trump ruled out further trade talks with India and announced 50 per cent tariffs, raising global trade concerns. Sustained foreign institutional investor (FII) selling, lacklustre Q1 Quarterly Results, and a stronger US dollar added to the bearish sentiment. Technical indicators also signalled fragile support levels, increasing the risk of further declines.

On the sectoral front, all 11 major indices ended in negative territory. Nifty Realty was the top loser, declining 2.11 per cent as Godrej Properties and Sobha Developers dragged the index to a three-month low. The Realty index is now down nearly 23 per cent from its 52-week high and is trading below key moving averages. Broader indices followed the downtrend, with the Nifty Midcap 100 and Small-Cap 100 falling 1.64 per cent and 1.49 per cent, respectively, with the small-cap index breaching its 200-day exponential moving average (200-DEMA).

Among individual stocks, LIC gained 3.16 per cent after announcing its Q1 results, while BSE fell over 2 per cent post-results. Bharti Airtel dropped 3.3 per cent after reports that its promoter may offload a 1 per cent stake worth Rs 12,500 crore. NTPC, Titan, and BPCL contributed the most to Nifty gains, adding 6.66 points, 5.21 points, and 2.44 points, respectively. On the downside, Bharti Airtel (-43.47 points), HDFC Bank (-26.45 points), and Reliance Industries (-20.90 points) were the major drags.

Market breadth remained weak, with 984 stocks advancing, 1,969 declining, and 85 remaining unchanged out of 3,038 traded on the NSE. A total of 54 stocks hit their 52-week highs, while 79 touched their 52-week lows. Additionally, 75 stocks were locked in upper circuits and 61 in lower circuits.

Market Update at 12:15 PM: Indian benchmark equity markets were trading lower on Friday after news emerged that US President Donald Trump has ruled out the possibility of trade negotiations with New Delhi until the ongoing tariff dispute is resolved. Trump has imposed a total of 50 per cent tariff on Indian exports to the US, impacting several key sectors.

At 12:00 PM, the Nifty50 index was at 24,430, down by 166 points or 0.68 per cent, while the BSE Sensex was at 80,068.94, lower by over 550 points or 0.69 per cent.

From the Sensex constituents, Bharti Airtel, Axis Bank, Tata Steel, Adani Ports, and Kotak Mahindra Bank were among the top laggards. In contrast, Titan, NTPC, Tech Mahindra, Maruti Suzuki, and Bajaj Finserv were trading in the green.

In the broader market, the Nifty Midcap100 index fell 1 per cent, while the Nifty Smallcap100 index declined 0.63 per cent.

On the sectoral front, Nifty Realty and Nifty Metal were down by over 1 per cent each, followed by losses in Auto, Bank, Energy, Financial Services, IT, Pharma, and Consumer Durables indices. Nifty Oil & Gas and Media were the only sectoral gainers.

Market participants continue to watch developments on the US-India trade front, as prolonged tensions could affect Large-Cap, Mid-Cap, and small-cap stocks across multiple sectors.

Market Update at 10:30 AM: India’s equity benchmarks opened lower on Friday as weakness in IT and pharma stocks weighed on sentiment. The Nifty 50 fell 0.18 per cent to 24,550.05 points, while the BSE Sensex declined 0.24 per cent to 80,425.23 as of 9:27 a.m. IST.

At the sectoral level, eight of the 16 major indices recorded losses in early trade. Broader markets were mixed, with the small-cap index trading flat and the mid-cap index also showing minimal movement. U.S.-exposed IT stocks dropped 0.5 per cent, while the pharma index slipped 0.4 per cent, reversing part of Thursday’s gains of 0.9 per cent and 0.8 per cent, respectively.

The market weakness follows Thursday’s intraday decline, when the Nifty 50 and Sensex fell nearly 1 per cent each after U.S. President Donald Trump announced an additional 25 per cent tariff on Indian goods, taking the total to 50 per cent. The move was linked to New Delhi’s continued oil trade with Moscow.

However, the sell-off was limited after a Kremlin aide confirmed an upcoming meeting between Trump and Russian President Vladimir Putin. Analysts suggested that the meeting could be a potential turning point in the Russia-Ukraine conflict, possibly leading Washington to ease trade pressure on countries like India that import Russian oil.

Pre-Market Update at 7:30 AM: On Friday, August 8, the Gift Nifty signalled a weak start for Indian markets. As of 7:05 AM, it was trading near 24,645, down 50 points from its previous close, indicating a cautious opening for the Nifty and Sensex.

Asian markets opened slightly higher, following the positive close in US equities led by Nasdaq gains. On Thursday, the Dow Jones fell 0.51 per cent to 43,968.64 and the S&P 500 slipped 0.08 per cent to 6,340.00, pressured by Eli Lilly’s sharp decline after its oral weight-loss drug data missed expectations. The Nasdaq gained 0.35 per cent to 21,242.70, while European indices hit a one-week high on banking strength and optimism over a potential Ukraine ceasefire.

In India, benchmark indices are expected to trade in a range, influenced by global developments, US-Russia discussions, tariff updates, and ongoing quarterly results. On Thursday, August 7, FIIs were net sellers for the 14th straight session, offloading equities worth Rs 4,997.19 crore. DIIs continued their buying streak for the 24th session, purchasing Rs 10,864.04 crore. The India VIX fell, and the Rupee strengthened against the US dollar.

State Bank of India, Tata Motors, Grasim Industries, Siemens, Info Edge India, Voltas, Cholamandalam Financial Holdings, Jubilant Agri and Consumer Products, Garden Reach Shipbuilders & Engineers, and Wockhardt will announce their quarterly results. Stock-specific action is expected in large-cap, mid-cap, and small-cap segments based on earnings surprises, dividend announcements, or bonus/share issue news.

The Nifty 50 closed at 24,596.15, up 0.09 per cent after a volatile session, while the Bank Nifty gained 0.2 per cent to 55,521.15. Pharma and IT rebounded strongly, while Realty and Oil & Gas ended lower. Mid-cap and small-cap indices gained between 0.17 and 0.33 per cent.

Gold prices stayed firm at USD 3,400.26 per ounce as investors anticipated rate cuts after Stephen Miran’s Fed Board nomination. Crude oil fell for the sixth session, with WTI at USD 63.83 and Brent at USD 66.39, down 0.1 per cent, as supply risk concerns eased.

For today, PNB Housing remain on the F&O ban list.

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