Sensex, Nifty Extend Losses as IT and Tata Stocks Weigh

Indian equities remained firmly in the red on Wednesday afternoon, with selling in IT and Tata Group stocks keeping the benchmarks under pressure. At around 2:20 PM, the Sensex was trading near 77,565, down roughly 590 points or 0.75 per cent, while the Nifty 50 hovered around 24,289, lower by about 183 points or 0.75 per cent. Earlier, the Nifty touched an Intraday low of 24,265.95.

The broader market was relatively more resilient. Nifty Bank traded near 57,503, up 0.10 per cent, supported by strength in public sector lenders. The Nifty Midcap 100 slipped around 0.40 per cent to 63,587, while the Nifty Smallcap 100 was down about 0.2 per cent near 19,898. The divergence showed that much of the pressure was concentrated in heavyweight stocks rather than a uniform selloff across the market.

Nifty PSU Bank was the standout performer, rising about 1.5 per cent, while Nifty Metal and the Defence index managed marginal gains. Aluminium counters attracted buying after global aluminium prices climbed amid supply concerns linked to Middle East tensions.

On the losing side, Nifty IT fell over 2.2 per cent, while Nifty Realty declined about 1.1 per cent and Nifty FMCG slipped nearly 1 per cent. IT was hit particularly hard by the weakness in TCS.

TCS fell nearly 5 per cent after Tata Sons Chairman N Chandrasekaran said he would not seek reappointment when his term ends, triggering selling across several Tata Group companies.

Godrej Consumer Products dropped around 9.4 per cent following the sudden exit of CEO Sudhir Sitapati. On the positive side, NALCO gained about 7.5 per cent as aluminium prices strengthened, while Marksans Pharma rallied over 9 per cent after Q1 profit jumped 174 per cent year on year to Rs 159 crore.

For the latest completed session on August 11, FIIs were net buyers of Rs 258.55 crore, while DIIs bought Rs 24.77 crore in the cash market. Provisional figures for August 12 will be available after market hours.

Global cues remained mixed. The Dow had ended 0.35 per cent lower, while Asian markets were split, with Japan gaining and Hong Kong falling. More importantly for India, Brent crude traded near USD 89.6 a barrel, while the Dollar Index hovered around 99.86. Elevated crude continued to weigh on sentiment.

For the Nifty, 24,250 to 24,200 remains the immediate support zone, while a recovery above 24,550 could improve the near-term setup, with 24,650 to 24,700 as the next resistance area. Investors will also track India and US inflation data, crude oil prices and developments around the Strait of Hormuz.

This remains a Market commentary based on prevailing prices and developments rather than a recommendation to buy or sell securities.

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