Sensex Falls After Flat Start, Nifty Holds 24,200; Metal Stocks Outperform

Indian benchmark indices gave up their early gains soon after Thursday’s opening session.

With the Sensex slipping into the red and the Nifty 50 holding close to the 24,200 mark. Investors remained cautious amid mixed global cues and selling in several heavyweight stocks.

The Sensex opened at 77,576.76, higher than Wednesday’s close of 77,472.94, but fell to 77,394.46 by around 9:31 am, down 78.48 points or 0.10%. The Nifty started at 24,277.60 before easing to 24,207.65, almost unchanged from its previous close of 24,207.75.

The broader market outperformed the benchmark indices. The Nifty Midcap 100 gained 0.25%, while the Nifty Smallcap 100 advanced 0.16%. The India VIX climbed 2.93% to 10.88.

Metal Stocks Lead Sectoral Gainers

Sectoral indices traded mixed in early deals. Nifty Metal rose 0.32%, while Nifty Consumer Durables gained 0.29%. Nifty Healthcare advanced 0.22%, followed by Nifty Pharma at 0.18% and Nifty Oil & Gas at 0.13%.

Nifty IT was nearly unchanged, while Nifty Private Bank edged up 0.10%.

Nifty Cement was the biggest sectoral laggard, declining 0.51%. Nifty Auto fell 0.45%, while Nifty FMCG and Nifty PSU Bank slipped 0.04% and 0.08%, respectively.

Among Sensex constituents, Bajaj Finance gained 1.17% to lead the index, followed by BEL at 1.13% and Kotak Mahindra Bank at 0.94%. Tech Mahindra, Tata Steel and Eternal were also among the gainers.

HDFC Bank fell 1.21% and emerged as the biggest drag on the Sensex. HCL Technologies dropped 1%, while M&M, Power Grid, Bharti Airtel, Maruti and TCS also traded lower.

Nvidia Results Lift Global Tech Sentiment

Asian markets were largely positive after Nvidia delivered better-than-expected quarterly results, renewing optimism around artificial intelligence and semiconductor stocks. South Korea’s Kospi climbed around 1.5% and Taiwan’s benchmark gained 0.9%, while Japan’s Nikkei 225 traded lower.

Nvidia reported more than a doubling in quarterly revenue and issued a third-quarter revenue forecast above Wall Street expectations. Its shares rose 4.7% in after-hours trading, while S&P 500 e-mini futures gained 0.4%.

Data-centre revenue increased 117% year-on-year to $8.9 billion. The company projected third-quarter revenue of around $10.8 billion, while CEO Jensen Huang and other executives maintained an upbeat outlook for the company’s future growth.

However, concerns about elevated US inflation continue to weigh on investor sentiment. The US personal consumption expenditures index rose 0.2% in July, with the annual rate reaching 3.7%, above the Federal Reserve’s 2% target.

Investors are now awaiting Federal Reserve Chair Kevin Warsh’s address at the Jackson Hole symposium on Friday for indications about the future path of interest rates.

Falling Oil Prices Offer Some Relief

Brent crude traded near $87 a barrel and remained on course for a fourth straight session of declines. Softer crude prices could benefit India by easing inflationary pressures, reducing the trade deficit and supporting the rupee.

Geopolitical developments, particularly around the Strait of Hormuz and the broader West Asia region, remain key risks for global markets.

Nifty Faces Resistance at 24,300-24,400

Ponmudi R, CEO of Enrich Money, said easing crude prices had improved the near-term macroeconomic backdrop for Indian equities.

He identified 24,300-24,400 as a crucial resistance zone for the Nifty. A sustained move above 24,400 could strengthen the recovery and push the index towards 24,500-24,600.

On the downside, 24,200 is the immediate support, followed by 24,000. A sustained break below 24,200 could keep the market subdued, while a decisive move above 24,400 may revive upward momentum.