Stock market today: The Indian stock market benchmarks, the Sensex and the Nifty 50, ended lower on Wednesday, 26 August, amid profit-booking ahead of key US inflation prints. The Sensex ended 183 points, or 0.24%, lower at 77,472.94, while the Nifty 50 declined 127 points, or 0.52%, to settle at 24,207.75.
The mid- and small-cap segments, however, exhibited resilience: the Nifty Midcap 150 index ended flat, while the Smallcap 250 index rose by 0.60%.
Bharti Airtel, Reliance, Larsen and Toubro, and Infosys were the top drags on the Sensex and the Nifty 50.
What drove the stock market down?
Key indices ended lower as investors booked profits ahead of the release of the US Personal Consumption Expenditures (PCE) price index data for July. The US Federal Reserve’s preferred inflation gauge is due at 1230 GMT today.
A 3% crash in oil prices was a positive, but it failed to cheer the market due to the lingering stalemate between the US and Iran. After the US imposed economic sanctions on Iran and its trading partners on Monday, the Islamic Republic warned that Washington’s new sanctions on Tehran would not bring peace to the region.
China has also signalled defiance to the Trump administration, saying its relationship with Iran “should not be disrupted or undermined.” China will take “all necessary measures” to safeguard its interests, Foreign Ministry spokesperson Lin Jian warned.
“The domestic market ended marginally lower, giving up early gains as sectoral divergence weighed on benchmarks through the session. Inflation concerns receded amid tempered US sanctions on Iran, easing domestic bond yields and lifting banking stocks, while metals gained on better prospects for realisation. However, these gains were largely offset by weakness in IT stocks after the U.S. paused visa appointments amid an immigration crackdown, which rekindled margin pressure concerns,” said Vinod Nair, Head of Research, Geojit Investments.
“Investors now await the U.S. Core PCE print for greater clarity on the rate trajectory. A contained core reading would indicate that the recent energy-led inflation spike is transitory, easing rate concerns and supporting flows into emerging markets,” said Nair.
Top gainers and losers in the Nifty 50 index
As many as 36 stocks ended lower in the Nifty index, with Bharti Airtel, Power Grid, and Infosys the top laggards, each falling more than 2%. On the other hand, Kotak Mahindra Bank, Axis Bank, JSW Steel, and UltraTech Cement ended as the top gainers in the index, rising between 1.5% to 4%.
Sectoral indices today
Nifty IT (down 1.47%), FMCG (down 0.95%), Consumer Durables (down 0.93%), Realty (down 0.83%), Auto (down 0.74%), and Oil and Gas (down 0.58%) lost significantly.
On the other hand, Nifty Metal (up 1.27%), Private Bank (up 1.04%) and PSU Bank (up 0.77%) ended with decent gains.
Nifty Bank and Financial Services rose by 0.50% each.
Nifty’s technical view
According to Nandish Shah, Deputy Vice President at HDFC Securities, the Nifty is yet to establish a clear directional trend.
“The 24,100–24,400 range will be crucial going forward. A decisive breakout above 24,400 could signal renewed strength, while a sustained break below 24,100 may increase the risk of further weakness. Until then, the index is likely to stay volatile and range-bound,” said Shah.
Ajit Mishra, SVP- Research at Religare Broking, believes the 24,000–24,100 zone may provide immediate support, while the 24,400–24,500 region is likely to act as the key resistance band.
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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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