Nifty Struggles Near 24,150 as Investors Track Crude Oil and Expiry Volatility

Market Update at 12:45 PM: Indian equity markets remained under pressure in Tuesday’s afternoon trade as investors stayed cautious ahead of the monthly derivatives expiry. At around 12:30 pm, the Sensex was trading near 77,200 levels, down around 150 to 200 points, while the Nifty 50 hovered around 24,150, lower by nearly 70 points or around 0.3 per cent. The mood on Dalal Street remained rangebound as concerns over rising crude oil prices and global geopolitical developments limited buying interest.

The broader market showed relative resilience compared to frontline indices. Nifty Midcap and Nifty Smallcap indices traded close to flat levels, indicating selective buying interest among mid and small-sized companies. Investors continued to track stock-specific opportunities even as benchmark indices struggled for direction.

Banking stocks remained under pressure, with Nifty Bank trading lower around 57,000 levels. Financial stocks faced selling pressure as investors remained cautious ahead of expiry-related volatility and global risk factors.

Sectoral performance remained mixed during the session. Nifty Media and Nifty PSU Bank emerged among the better-performing pockets, gaining around 0.5 per cent to 0.6 per cent in early afternoon trade. On the other hand, Nifty Metal, Nifty Oil & Gas and Nifty IT remained under pressure as investors reacted to global cues and commodity price movements.

Metal stocks faced pressure after recent gains, while IT stocks remained sensitive to movements in US markets, bond yields and expectations around the Federal Reserve’s policy outlook. Realty and Auto stocks also traded slightly lower during the session.

Market Update at 10:45 PM: Indian benchmark indices traded lower on Tuesday as weakness across global equities weighed on investor sentiment ahead of Nvidia Corp’s earnings. Concerns over the outlook for artificial intelligence (AI) expansion kept investors cautious.

As of 10:32 AM, the Nifty 50 declined 90.45 points, or 0.37 per cent, to 24,128.60. The Sensex fell 209.23 points, or 0.27 per cent, to 77,159.88.

Cipla, Hindalco Industries and Tata Consumer Products were the Top Losers on the Nifty 50. In the broader market, the Nifty MidCap index was marginally higher by 0.02 per cent, while the Nifty SmallCap index declined 0.06 per cent.

Among sectors, the Nifty Metal and Nifty Auto indices were the biggest laggards. In contrast, the Nifty IT and Nifty PSU Bank indices were among the Top Gainers.

Market Update at 09:30 AM: The Nifty 50 and Sensex declined slightly in pre-open trade on Tuesday as global equities remained under pressure ahead of earnings from chipmaker Nvidia Corp. Investors are closely watching the results amid concerns over the outlook for artificial intelligence (AI) expansion and technology spending.

As of 9:17 AM, the Sensex fell 107.22 points, or 0.14 per cent, to 77,261.89, while the Nifty 50 declined 52.40 points, or 0.22 per cent, to 24,166.65. Cipla, Hindalco Industries and Tata Consumer Products were among the top losers on the Nifty 50.

In the broader market, the Nifty MidCap and Nifty SmallCap indices declined 0.22 per cent and 0.21 per cent, respectively. Among sectors, the Nifty Metal and Nifty Auto indices were the biggest losers, while Nifty IT and Nifty PSU Bank traded higher.

The Rs 175.06 crore book-built IPO of Annu Projects will open for subscription on Tuesday. The Rs 53.40 crore IPO of Sumax Engineering will also open for subscription.

Meanwhile, the IPOs of Symbiotec Pharmalab, Skyways Air and Hy-Tech Engineers will enter their second day of subscription. In the SME segment, Madhur Knit and ABH Healthcare IPOs will also enter the second day of bidding.

Augmont Enterprises' IPO will remain open for its second day of subscription. The company is looking to raise Rs 825 crore through the issue.

Pre-Market Update at 7:40 AM: GIFT Nifty was trading around 24,170 in early trade on August 25, down 41 points from its previous close, signaling a cautious start for Indian equities. Global risk factors, weakness in technology stocks and concerns over elevated crude oil prices are likely to keep sentiment under pressure.

The domestic market ended lower in the previous session. The Nifty 50 declined 32.95 points, or 0.14 per cent, to close at 24,219.05, while the Sensex fell 171.72 points, or 0.22 per cent, to 77,369.11. Investors remained cautious amid developments surrounding fresh U.S. sanctions on Iran and broader global uncertainty.

Wall Street ended mixed on Monday as investors assessed geopolitical developments, upcoming corporate earnings and monetary policy signals. The S&P 500 fell 21.51 points, or 0.3 per cent, to 7,652.86, while the Nasdaq Composite declined 200.26 points, or 0.8 per cent, to 25,980.19. The Dow Jones Industrial Average outperformed, gaining 140.15 points, or 0.3 per cent, to close at 53,417.16.

Technology and Semiconductor stocks remained under pressure ahead of Nvidia's earnings, with investors reassessing valuations and the outlook for artificial intelligence spending. Financial stocks, meanwhile, provided support to the Dow. Markets are also awaiting further U.S. Federal Reserve commentary for signals on inflation and the interest rate outlook.

Asian markets opened weak, tracking the overnight pressure on global technology stocks and geopolitical concerns. In the previous session, the Nikkei 225 closed at 65,528.09, down 0.74 per cent, while the Hang Seng declined 1.89 per cent to 25,517.33. The Shanghai Composite fell 0.59 per cent to 3,882.01 and the Kospi dropped 3.12 per cent to 6,696.96.

European markets also ended mostly lower. Germany's DAX declined 0.75 per cent, France's CAC 40 fell 0.32 per cent, while the U.K.'s FTSE 100 edged up 0.04 per cent.

Geopolitical developments surrounding expanded U.S. sanctions on Iran remain a key factor for global markets. Investors are assessing the potential impact on oil supplies and risks surrounding the Strait of Hormuz.

Brent crude was trading near USD 90.72 per barrel, while WTI crude stood around USD 86.02 per barrel. Although oil prices stabilised after falling more than 2 per cent in the previous session, elevated crude prices remain a concern for India, particularly for oil marketing companies, airlines and energy-intensive industries.

Gold remained firm amid safe-haven demand and uncertainty surrounding global financial markets. International gold prices were near USD 4,700 per ounce, while MCX gold futures traded around Rs 1,63,550 per 10 grams. International silver was near USD 69 per ounce, with MCX silver trading around Rs 2,46,150 per kg.

The Dollar Index strengthened towards 99.00, supported by safe-haven demand. Meanwhile, the U.S. 10-year Treasury yield eased to around 4.709 per cent amid concerns surrounding bond market stability and expectations of possible Treasury measures. Lower yields could offer some support to equity valuations, although elevated interest rates continue to influence global capital flows.

The Indian rupee remained under pressure due to elevated crude prices and dollar demand. The rupee had closed at 95.7050 against the U.S. dollar on August 20, compared with 95.7525 in the previous session, with investors monitoring crude oil movements and possible RBI intervention.

Foreign institutional investors (FIIs) bought Indian equities worth Rs 1,181.66 crore on August 24, while domestic institutional investors (DIIs) were also net buyers to the tune of Rs 2,493.41 crore. 

The latest U.S. sanctions on Iran could continue to weigh on risk appetite while supporting crude oil prices. Nvidia's upcoming earnings will be closely tracked for indications on artificial intelligence spending and technology sector valuations. Expectations surrounding possible U.S. Treasury bond market measures could influence global liquidity and currency movements.

Continued strength in gold may keep gold financing companies and commodity-linked businesses in focus. MCX could also remain active amid elevated gold and silver prices and higher trading activity. Meanwhile, oil marketing companies, aviation stocks and paint manufacturers may react to further movement in crude prices.

Technology stocks could remain volatile amid weakness in global semiconductor shares and concerns over artificial intelligence investment trends. Energy stocks will remain sensitive to developments surrounding Iran and crude oil prices, while gold financing and commodity-linked financial companies may stay in focus due to elevated bullion prices.

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

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