Indian equities closed lower on Wednesday, giving up early gains as profit booking in heavyweight financials and caution ahead of inflation data kept sentiment muted.
The BSE Sensex ended at 77,966.35, down 187.90 points or 0.24%. It opened at 78,263.33, made a day’s high at the same level, and slipped to a low of 77,497.93 before recovering partially into the close. Previous close: 78,154.25.
The Nifty 50 settled at 24,435.95, down 35.75 points or 0.15%. The index opened at 24,472.45, touched a high of 24,473.30 and a low of 24,265.95. Previous close: 24,471.70.
Both indices saw a V-shaped move — sold off till noon, then clawed back in the last hour but failed to turn green.
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SECTORS IN FOCUS: IT Holds Fort, Banks Slip
It was a defensive day with clear sector divergence.
IT was the lone bright spot, up ∼0.75%. The US-China 90-day tariff truce extension gave tech exporters relief, as fears of punitive duties that could hit discretionary tech spending eased.
Financials dragged. The sector fell 0.6% after rallying 0.9% on Tuesday. SBI slipped 2.4% despite reporting strong loan growth, as deposit pressure and margin concerns weighed. HDFC Bank and ICICI Bank also ended in the red.
Out of 16 sectoral indices, 12 ended with marginal gains but the heavyweights couldn’t hold. Broader markets were mixed — midcaps added 0.6% while smallcaps lost 0.3%.
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WHAT WEIGHED ON SENTIMENT
1. CPI Data Eyed
Markets are waiting for India’s July retail inflation print due after market hours. Estimates peg it at an eight-year low of 1.76% vs 2.10% in June, driven by cooling food prices. A softer number would support the RBI’s neutral stance, but WPI at 9.87% and crude above $80/barrel are keeping inflation worries alive.
2. Geopolitics Back in Play
The US last week imposed an additional 25% tariff on India, taking the total to 50%, citing Russian oil purchases. With a Trump-Putin meeting scheduled for Aug 15 in Alaska, investors are avoiding big bets.
“The main event markets are focused on is Trump-Putin meeting in mid-August,” noted Pankaj Pandey, Head of Retail Research, ICICI Securities.
3. FPI Flows Choppy
Foreign investors sold ₹14,018.87 crore in August so far, though they bought ₹1,932.81 crore on Aug 8. July saw outflows of ₹47,666.68 crore. The inconsistent FPI trend, plus a widening credit-deposit gap in banks, has capped the upside.
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GLOBAL CUES: CAUTIOUS OPTIMISM
Asian markets traded firm after the US-China truce, but crude strength capped gains. Brent held near $80.7/barrel amid Middle East tensions — a risk for India’s inflation and current account.
US markets are watching today’s CPI data for clues on Fed rate cuts. Lower US rates usually help EMs like India by making Treasuries less attractive.
On the domestic front, RBI Governor Sanjay Malhotra indicated the repo rate may stay at 5.25% with a neutral stance. He flagged fuel prices as the key driver pushing inflation above target.
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TECHNICAL VIEW
Nifty is hovering near the 24,350-24,380 zone — the lower end of the gap from Aug 5. Analysts say a close above 24,450 could trigger a move toward 24,700. Immediate supports are at 24,331, 24,143 and 23,875.
In F&O, maximum call OI is at 24,600 and maximum put OI at 24,500-24,400, suggesting 24,600 as near-term resistance.
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STOCKS THAT MADE HEADLINES
– Paytm: +9.9% to a 56-month high after Bernstein flagged potential UPI fee income.
– Titan: Hit a record high, +3%.
– Hero MotoCorp: +2.4% on strong two-wheeler demand cues.
– Ola Electric: -4.3% as weak sales numbers overshadowed lower losses.
Over 500 companies including Hindustan Copper, Vodafone Idea, NMDC and Voltas report results today.
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THE ROAD AHEAD
The market remains in consolidation mode. Since last Independence Day, the Sensex is up just 1.4% amid geopolitical noise, FPI selling and uneven earnings. Morgan Stanley still sees a 30% probability of Sensex hitting 1,00,000 by June 2026 if oil stays below $65, trade tensions ease, and the government pushes GST reforms.
For now, expect stock-specific moves. With US CPI, India CPI and the Trump-Putin talks on the calendar, volatility will likely stay high through the week.
