Sensex, Nifty Recover from Day’s Lows but Crude Oil Keeps Dalal Street Under Pressure

Indian equity markets remained bearish on Friday, although benchmark indices recovered sharply from their morning lows. At around 2:00 pm, the Sensex was trading at 76,136.66, down 254.73 points or 0.33 per cent. The Nifty 50 stood at 23,783.70, lower by 85.90 points or 0.36 per cent. The index had slipped to an Intraday low of 23,606.30 before bargain buying helped reduce losses.

The recovery in Large-Cap indices was not fully reflected in the broader market. The Nifty Bank was almost flat at around 56,569, down 0.04 per cent. The Nifty Midcap 100 declined 0.42 per cent to 61,425, while the Nifty Smallcap 100 slipped 0.62 per cent to 18,819.

Market breadth continued to favour sellers, indicating that weakness remained visible beyond the frontline indices.

The Nifty Media index emerged as the strongest sectoral performer, gaining 1.42 per cent, supported by buying in PVR INOX and Tips Music. PVR INOX had reported a quarterly profit, aided by higher ticket prices and stronger food and beverage spending.

The Nifty PSU Bank index advanced 0.22 per cent, while Nifty FMCG traded almost flat with a gain of 0.03 per cent.

On the losing side, Nifty Auto fell 1.25 per cent as rising crude oil prices and inflation concerns weighed on sentiment. Nifty Metal declined 0.68 per cent, while the Nifty Services Sector and Nifty Oil and Gas indices dropped 0.67 per cent and 0.54 per cent, respectively.

Suryoday Small Finance Bank gained around 7 per cent after its June-quarter net profit more than doubled to Rs 75 crore from Rs 35 crore a year earlier.

Cyient rose about 2 per cent after reporting an improvement in quarterly profit. On the other hand, Swiggy fell more than 5 per cent after its proposed foreign ownership ceiling raised concerns about potential passive outflows of nearly USD 460 million.

Infosys declined as much as 2.6 per cent after the company narrowed its FY27 constant-currency revenue growth guidance and brokerages turned cautious.

According to the latest provisional cash-market data for July 23, foreign institutional investors sold shares worth Rs 2,999.23 crore. Domestic institutional investors provided support by purchasing equities worth Rs 2,947.14 crore.

Wall Street ended sharply lower overnight, with the Nasdaq falling 2.15 per cent, the S&P 500 declining 1.21 per cent and the Dow losing 0.97 per cent. Asian markets also weakened, with Japan’s Nikkei falling nearly 3 per cent and South Korea’s KOSPI dropping close to 5 per cent.

Brent crude traded around USD 100.30 per barrel, while the Dollar Index remained firm at 101.40. Higher oil prices revived concerns about inflation, corporate margins and the possibility of tighter global monetary policy.

Going ahead, traders will closely watch the Nifty support zone of 23,600 to 23,500. On the upside, 23,850 to 24,000 may act as immediate resistance. Quarterly earnings, crude oil movements and upcoming US Federal Reserve cues are likely to guide the next directional move.

This is a Market commentary and should not be treated as a recommendation to buy or sell securities.

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