Where is the market headed?
After the positive momentum on August 4th, fueled by hopes that global markets were shaking off fears of tariffs, sentiments took a sharp turn overnight. Former US President Donald Trump made comments criticizing India for not stopping the purchase of Russian oil, threatening to impose more tariffs.
To add to the tension, reports emerged of Indian drone components being found in Ukraine, allegedly used in the Russia-Ukraine conflict. These developments reignited fears of strained US-India trade relations.
Market Overview
Nifty dropped 0.3% but managed to recover about 60 points from the day’s low by the close. It formed an “inside bar” on the chart—an indicator of consolidation, just like the previous day. This means that the market is still range-bound, and it’s uncertain which direction it will take next.
Nifty Next 50
Nifty Junior slipped by 0.23%.
Nifty Mid and Small Cap
Midcaps dipped 0.19%, and Smallcaps fell 0.32%, which are relatively minor moves considering the global noise.
Bank Nifty
The Bank Nifty was down 0.47% and is hovering near recent lows. However, it has been in this range since May and hasn’t broken down significantly.
GOLD
Gold prices, after touching a morning high of ₹10,100 per gram, settled slightly lower at ₹10,048 by 4 PM. The precious metal continues to look strong in rupee terms, serving as a safe haven amid global uncertainty.
Advance Decline Ratio
In terms of market breadth, the day lacked strong momentum. Advances and declines remained flat for most of the session, with only a slight bounce toward the end.
Heat Maps
The Nifty heat map showed major drags from Reliance, ITC, ICICI Bank, HDFC Bank, Infosys, Asian Paints, and Adani Ports. On the positive side, Titan, L&T, Bharti Airtel, SBI, Bajaj Finance, SBI Life, Hindustan Bank (the top gainer today), and Eicher Motors tried to lift the index.
The Nifty Next 50 saw more red. Stocks like Britannia, Swiggy, Info Edge (Naukri), GAIL, DLF, and Adani Green were down. However, there were some bright spots such as Siemens, CG Power, Vedanta, Jindal Steel, Pidilite, D-Mart, HAL, and TVS Motors, which showed mild gains.
Movers Of The Day
Among the day’s notable movers, IndusInd Bank rose by 1.88% following news of a new CEO, which brought fresh hope for a turnaround.
Godfrey Phillips made an impressive 10% jump on a weak day, driven by a strong surprise in quarterly results showing 37% revenue growth. The stock, which had already been showing strong momentum, pushed even higher with this positive news.
Sectoral Overview
On the sectoral front, most sectors were marginally down. Capital markets were the biggest loser, falling 1.15%. This came amid news that the market regulator SEBI is considering a consultation paper on the F&O (Futures and Options) segment. The proposals may include measures such as limiting weekly expiries, introducing trader certifications, adjusting margin requirements, and tweaking STT (Securities Transaction Tax) between cash and derivatives. There’s even speculation that weekly expiries might be removed altogether—a move that could severely hit brokers and exchanges like NSE and BSE, where as much as 60–70% of operating margins come from F&O trading.
Sector of the Day
Nifty Capital Market Index
Capital market stocks such as BSE, Motilal Oswal, MCX, UTI AMC, and Indian Energy Exchange saw declines today, suggesting a cautious outlook.
Nifty India Defence Index
Interestingly, the defense sector bucked the trend with a 0.85% gain. Stocks like MTAR Technologies, Solar Industries, Mazagon Dock, Paras Defense, and Unimech were up. Whether this is just a temporary bounce or a potential trend reversal remains to be seen, but it’s notable that defense stocks have risen for two straight days even as the broader market shows signs of weakness.
