Sensex Falls Nearly 400 Points, Nifty Slips Below 24,500 as Banks Drag; Small-Caps Buck Trend

Indian equities remained under pressure in late-morning trade on Tuesday, with rising crude oil prices and renewed uncertainty around US-Iran negotiations weighing on risk appetite. The BSE Sensex was trading around 78,147, down 395 points or 0.50 per cent, while the Nifty 50 slipped 119 points or 0.48 per cent to 24,465. The weakness pushed the Nifty below the closely watched 24,500 mark, with 36 of its 50 constituents trading in the red.

The broader market showed better resilience than the frontline indices. Nifty Bank fell about 0.7 per cent to around 57,300 as private lenders remained under pressure. Nifty Midcap 100 was down around 0.2 per cent near 63,740, while Nifty Smallcap 100 bucked the trend and gained about 0.4 per cent to around 19,898, indicating that selling remained more concentrated in Large-Cap financials.

Sectorally, Nifty IT, Nifty Pharma and Nifty Auto managed modest gains of about 0.2-0.3 per cent each. On the other hand, Nifty Bank was down roughly 0.7 per cent, Nifty FMCG declined about 0.6 per cent and Nifty Financial Services lost around 0.5 per cent. Federal Bank, Axis Bank and IndusInd Bank were among the weaker private banking names, adding pressure to the financial pack.

Stock-specific action remained strong despite the weak benchmark mood. Gland Pharma jumped nearly 10 per cent to a 52-week high of Rs 2,928.60 after its Q1FY27 net profit rose 47 per cent year-on-year to Rs 317 crore. Kolte-Patil Developers traded around 12 per cent higher at Rs 516.65 after reporting Q1 net profit of Rs 146 crore versus Rs 17 crore a year earlier. Info Edge gained more than 5 per cent after its quarterly net profit rose 43 per cent year-on-year. In contrast, Antony Waste Handling Cell fell over 10 per cent to around Rs 374.55 after quarterly profit plunged 95.5 per cent to Rs 0.8 crore.

Institutional flow data for August 11 will be released only after the market closes. In the previous session on August 10, FIIs were net buyers of Indian equities worth Rs 1,974.76 crore, while DIIs were net sellers to the tune of Rs 1,290.29 crore.

Global cues remained mixed. US markets ended Monday slightly lower, with the S&P 500 down 0.06 per cent and Nasdaq falling 0.32 per cent. Asian equities were mixed, while Brent crude traded near USD 88 a barrel as doubts over a US-Iran agreement kept supply concerns alive. The firmer dollar and expensive crude also pressured the rupee.

For the rest of the session, Nifty’s ability to reclaim 24,500 will be important. A sustained break lower can bring the 24,400-24,300 zone into focus, while 24,700-24,800 remains the key resistance area. Traders will also track Q1 earnings and the upcoming US July CPI reading for cues on the Federal Reserve outlook.

This is Market commentary based on available Intraday information and should not be viewed as a trading recommendation.

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