The Sensex ended the day 692.89 points or 0.87 percent lower at 78,956.03, while the broader Nifty 50 settled 208 points or 0.85 percent lower at 24,139.
A broad sell-off in banking, metals, and auto stocks contributed to the downward trend, exacerbated by ongoing foreign fund outflows and mixed global market signals.
Despite some positive movement in select stocks, the overall sentiment was bearish.
Impact on the stock market
On the sectoral front, the Nifty Midcap and Smallcap indices also saw declines of 0.9 percent and 1.3 percent, respectively. Key indices such as Nifty Financial Services, Nifty Bank, Nifty PSU Bank, and Nifty Private Bank shed between 1 and 1.7 percent each.
Meanwhile, Nifty Metal lost 1.5 percent, Nifty Oil & Gas declined 1.2 percent, Nifty Media dropped 1 percent, and Nifty Auto fell 0.75 percent. The Nifty IT and Nifty Healthcare indices managed to remain flat, providing some relief.
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| Sector/Index | Performance |
| IT & BPM sector | 0.01% |
| Healthcare sector | 0.09% |
| Oil & Gas sector | -1.05% |
| Real estate sector | -0.73% |
| PSU Bank in India | -1.61% |
Top gainers today
| Company | Price | Change (%) |
| Titan Company Share Price | 3,383.55 | 1.89 |
| Apollo Hospital Share Price | 6,589.40 | 1.34 |
| Dr Reddys Labs Share Price | 6,948.40 | 0.90 |
| TATA Cons. Prod Share Price | 1,178.80 | 0.68 |
| HCL Tech Share Price | 1,592.65 | 0.47 |
Top losers today
| Company | Price | Change (%) |
| BPCL Share Price | 321.70 | -3.51 |
| HDFC Bank Share Price | 1,603.20 | -3.43 |
| Shriram Finance Share Price | 2,891.35 | -2.85 |
| HDFC Life Share Price | 685.00 | -2.48 |
| Bajaj Finance Share Price | 6,465.05 | -2.17 |
Market aftermath: Impact on stocks
HDFC Bank slips 3%
HDFC Bank’s stock took a significant hit, falling nearly 3 percent as investors expressed disappointment over MSCI’s decision to increase the bank’s weightage in two stages instead of one.
The bank’s stock closed at Rs 1,614 apiece, reflecting a lack of investor confidence in the staggered adjustment. The first adjustment is set for September 2, raising the foreign inclusion factor (FIF) from 0.37 to 0.56, with a second adjustment slated for November.
The lower-than-expected weight change added to the negative sentiment, contributing to the overall decline in banking stocks.
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Sugar stocks rise on ethanol price hike buzz
Sugar stocks climbed up to 6% following reports that the government is considering raising ethanol prices to boost production and meet the 20% blending target by 2025-26.
This proposal, which is expected to align ethanol prices with the fair and remunerative price of sugarcane, is seen as a positive development for sugar companies, driving their stock prices higher.
The proposal comes on the heels of recent remarks by Cooperation Minister Amit Shah, who affirmed that India would achieve its 20% ethanol blending target ahead of schedule.
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Olectra Greentech surges 12%
Olectra Greentech was a standout performer today, with its shares surging over 12% after the company reported strong Q1 FY25 earnings. The firm’s net profit jumped 34% year-on-year to Rs 24 crore, while revenue grew by 45% to Rs 314 crore.
The company also saw a 4.4% increase in EBITDA and a 33% rise in earnings per share (EPS).
These robust financial results, along with the reappointment of Venkateswara Pradeep Karumuru as Managing Director and the addition of two independent directors to the board, bolstered investor confidence, leading to a sharp rally in the stock.
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Crude oil price decline
Crude oil futures traded lower today after OPEC’s monthly oil market report revised down the demand growth forecast for 2024. Brent oil futures were down by 0.74% at $81.69, while September crude oil futures on WTI fell by 0.67% to $79.52.
In India, August crude oil futures were trading at ₹6,679 on the Multi Commodity Exchange (MCX), showing a modest gain of 0.26% from the previous close. However, the overall sentiment in the oil market was bearish, driven by concerns over weaker-than-expected demand growth in the coming year.
Conclusion
Today’s stock market session was marked by a broad-based decline, with significant losses in banking, metals, and auto stocks dragging down the indices.
While sugar stocks and Olectra Greentech managed to defy the trend with strong gains, the overall market sentiment remained negative, influenced by global cues and sector-specific challenges.
As the market continues to navigate these mixed signals, investors should remain cautious and consider the broader economic and geopolitical landscape when making investment decisions.
Stay tuned on StockGro for more updates on market trends.
