The Indian stock market ended lower on Thursday, 27 August, tracking mixed global cues and an uptick in oil prices amid persisting geopolitical uncertainty.
Crude oil benchmark Brent Crude futures edged up to trade near $88 per barrel as the US-Iran conflict remains unresolved. Indian rupee, meanwhile, slipped by 10 paise to close at 95.54 per dollar, provisional data showed.
The Sensex ended 539 points, or 0.70%, lower at 76,933.59, while the Nifty 50 closed the day at 24,090.85, down 117 points, or 0.48%. Broader markets also witnessed selling pressure, as the Nifty Midcap 150 declined 0.10% and the Nifty Smallcap 250 dropped 0.12%. Nifty Bank dropped 0.47% to end at 57,509.95.
HDFC Bank, Reliance, and Bharti Airtel were the top drags on the Sensex and the Nifty 50.
Among the sectoral indices, Nifty PSU Bank, Media, Metal, and Oil and Gas declined almost 1% each, while FMCG, Auto, Financial Services, and IT declined by up to half a per cent. On the other hand, Nifty Pharma, Healthcare, and Consumer Durables rose by almost 1% each.
“Expiry-led volatility and the lack of a diplomatic breakthrough in the Middle East continue to keep markets range-bound in the near term,” Vinod Nair, Head of Research, Geojit Investments, noted.
“FII inflows and resilient earnings momentum remain supportive for Indian equities, particularly mid-caps, where several segments are relatively insulated from global uncertainties and continue to benefit from strong domestic demand trends,” said Nair.
Top gainers and losers in Sensex, Nifty on 27 August
In the Nifty index, 31 stocks ended in the red, with Hindalco, HDFC Bank, and Mahindra and Mahindra among the top losers. Adani Enterprises, Kotak Mahindra Bank, and Adani Ports ended as the top gainers in the index.
In the Sensex kitty of stocks, only Kotak Mahindra Bank, ICICI Bank, Tech Mahindra, BEL, and Adani Ports ended with gains. On the flip side, HDFC Bank, NTPC, Mahindra and Mahindra ended as the top losers in the index.
Asian markets review
Among Asian markets, Japan’s Nikkei slipped 0.20%, while Korea’s Kospi jumped 1.51%, boosted by a rally in tech shares after Nvidia’s strong sales growth forecast for 2028. Hang Seng slipped 0.41%.
Stock market outlook
Investors will focus on US Federal Reserve Chair Kevin Warsh’s speech at the annual Jackson Hole symposium on Friday for cues on inflation, interest rates, and the monetary policy outlook.
Concerns over inflation refuse to fade amid the ongoing US-Iran conflict and energy price volatility. The Federal Reserve’s preferred inflation measure, Personal Consumption Expenditures (PCE), increased 3.7% year-on-year in July, indicating inflation remained above the Fed’s 2% target for the 65th straight month. Core PCE rose 0.2% month-on-month and 3.3% year-on-year.
What to expect from Sensex, Nifty on Friday
Nandish Shah, Deputy Vice President at HDFC Securities, pointed out that the Nifty has closed below its 20-, 50- and 100-day DEMAs, signalling a bearish bias on the daily timeframe.
“A decisive break below the prior swing low of 24,025 would confirm a positional trend reversal. On the upside, the recent swing high of 24,378 is likely to act as immediate resistance,” said Shah.
Shrikant Chouhan, the head of equity research at Kotak Securities, believes that the intraday market texture is weak, but there could be a technical bounce back if the Nifty and the Sensex manage to trade above the 24,100 and 77,000 support levels, respectively.
Above this level, the Nifty could bounce back to 24,250-24,300, while Sensex could jump to 77,500-77,700. On the flip side, below 24,000 and 76,700, selling pressure is likely to accelerate, and the indices could slip to 23,900-23,850/76500-76200, said Chouhan.
According to Vipin Kumar, AVP-Research at Globe Capital Market, a decisive close below 24,000 spot levels could drag it toward 23,800, followed by 23,600. Conversely, sustained trading above 24,200 could lead it back toward the upper band of the range at 24,380–24,400.
What to expect from Hang Seng, KOSPI, Nikkei on Friday
Kumar underscored that the KOSPI is gradually moving higher toward price resistance around the 7,150–7,220zone. Going forward, a decisive close above this resistance zone could lead it toward 7,500 and higher in the immediate near term. Immediate support is in place around the 6,400 level on the downside, he said.
The Hang Seng is going through a consolidation phase, with immediate support around the 25,100 level and resistance around the 26,000–26,180 zone, said Kumar. A decisive breakout on either side of this range could trigger the next short-term directional move.
The Nikkei 225 index is moving higher in a constructive higher-highs and higher-lows pattern above its key moving averages. Moving forward, sustained trading above the 67,000 spot level could lead it toward 68,500–69,000; conversely, a drop below 64,600 could drag it back to the 63,000–62,000 spot zone in the near term, Kumar said.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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