Sensex, Nifty Extend Losses as Crude Nears $90; IT Stocks Lead Decline

Indian equities remained firmly in the red on Wednesday, August 12, as rising crude oil prices and caution ahead of key inflation data kept buyers on the sidelines. At around 11:03 AM IST, the Sensex was down 557.50 points, or 0.71 per cent, at 77,596.75, while the Nifty 50 slipped 172 points, or 0.70 per cent, to 24,299.70. Market breadth was also negative, with 1,593 shares advancing against 2,019 declining.

Broader markets showed comparatively smaller losses. The Nifty Midcap 150 was down around 0.28 per cent at 23,393, while the Nifty Smallcap 100 slipped 0.21 per cent to 19,814.60. Banking stocks offered some support, with the Nifty Bank trading around 57,576, up 0.23 per cent.

Sectoral action remained sharply divided. Nifty PSU Bank was the standout performer, gaining 1.73 per cent, while Nifty Metal advanced 0.37 per cent. Buying in public sector lenders including Punjab National Bank, Union Bank, Bank of Baroda and Canara Bank supported the PSU banking index. Metals benefited from strength in global aluminium prices amid concerns over Gulf supply and lower inventories.

On the losing side, Nifty IT fell 1.99 per cent, making it the worst-performing major sector. Nifty Consumer Durables declined 1.15 per cent, while Nifty FMCG slipped 1.02 per cent and Nifty Realty lost 0.92 per cent. TCS and other technology stocks remained under pressure, while the sharp fall in Godrej Consumer Products weighed heavily on FMCG sentiment.

Stock-specific action remained strong despite the weak benchmarks. TD Power Systems surged as much as 16 per cent after its Q1 profit jumped 72 per cent year-on-year to Rs 86 crore. Godrej Consumer Products plunged around 10 per cent after MD and CEO Sudhir Sitapati resigned with immediate effect. National Aluminium Company gained more than 7 per cent as aluminium prices strengthened globally, while Bata India rose around 3.5 per cent after reporting a 23 per cent year-on-year increase in quarterly profit.

Institutional flows were mildly supportive in the previous session. FIIs were net buyers of Rs 258.55 crore on August 11, while DIIs bought equities worth a net Rs 24.77 crore. August 12 institutional cash-market figures will be available only after the session ends.

Global cues remained mixed. Overnight, the S&P 500 and Dow Jones fell around 0.3 per cent each, while the Nasdaq declined 0.6 per cent. In Asia, Japan's Topix gained 0.7 per cent and Shanghai rose 0.3 per cent, while Hong Kong's Hang Seng dropped 1.2 per cent. The bigger concern for India remained Brent crude near USD 90 per barrel, which revived worries around inflation, the rupee and corporate input costs.

For the rest of the session, the Nifty's 24,200 to 24,300 zone remains important support, with 24,000 emerging as the next key level if selling intensifies. On the upside, 24,500 is the immediate hurdle. Traders will also track India's inflation data after market hours and the US CPI reading later in the day for fresh direction on interest rates and global risk sentiment.

This remains a Market commentary based on prevailing market data and developments, rather than a recommendation to trade.

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