Sensex, Nifty Trade Flat as Small Caps Outperform, Defence Stocks Rally

Indian benchmark indices traded in a narrow range with a mild positive bias on Thursday, August 6. As of around 11:00 AM IST, the Sensex was at 78,736.48, up 155.48 points or 0.28 per cent, while the Nifty 50 stood at 24,635.20, higher by 10.55 points or 0.04 per cent. Lower crude oil prices and hopes of progress in US-Iran talks supported sentiment, although weakness across Asian markets kept gains in check.

The broader market continued to show better strength than the benchmarks. The Nifty Midcap index was up around 0.05 per cent, while the Nifty Smallcap index gained about 0.67 per cent and touched a fresh 52-week high. Nifty Bank remained subdued around the 57,700 zone after closing Wednesday at 57,740, indicating limited participation from banking heavyweights.

Sectoral action remained mixed. The Nifty India Defence index jumped more than 2 per cent, supported by gains in Hindustan Aeronautics, Bharat Electronics and Solar Industries. Pharma was another relatively firm pocket amid earnings-led buying. On the other hand, Realty and Auto were among the biggest sectoral laggards, while IT remained under pressure with Mphasis, HCL Technologies and TCS among the weaker technology stocks. Overall, nine of the 16 major sectors were trading in the red.

Among individual stocks, Neuland Laboratories surged around 8.2 per cent after its quarterly profit jumped nearly tenfold. Navin Fluorine International climbed about 5.9 per cent after June-quarter profit doubled year-on-year, while improved capacity utilisation and a stronger Order Book also supported sentiment. PB Fintech gained over 3 per cent, touching an Intraday high of Rs 1,673 following positive earnings estimate revisions. Cummins India, however, fell as much as 4.8 per cent to Rs 5,175 after consolidated Q1 profit declined 7.8 per cent year-on-year to Rs 543 crore, although the stock later recovered most of its losses.

Institutional flows were mixed in the previous session. Foreign institutional investors snapped a six-session buying streak and sold Indian equities worth Rs 943 crore on Wednesday, while domestic institutional investors provided support with net purchases of Rs 2,883 crore.

Global cues offered little directional support. Overnight, the Dow Jones gained 0.49 per cent, while the S&P 500 slipped 0.17 per cent and Nasdaq declined 0.83 per cent. In Asia, Japan’s Nikkei fell around 1.57 per cent and South Korea’s Kospi dropped 3.64 per cent. Brent crude eased to around USD 79.31 per barrel, while WTI traded near USD 74.96, providing some relief for Indian equities.

For the Nifty, the 24,700 to 24,800 zone remains the key resistance area, while support is placed around 24,500 to 24,400. Attention will also remain on Quarterly Results from companies including Britannia Industries, Lupin, Hero MotoCorp and LIC, along with developments in the Middle East and crude oil prices.

The market remains largely stock-specific, with earnings and global developments driving individual moves rather than a strong directional trend in the headline indices.

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