Market Close Report, August 7, 2026: Sensex Falls 0.6%, Nifty Declines 0.3% as Financials, Private Banks Drag

Mumbai, August 7: Indian benchmark indices declined on Friday as selling in financial stocks, elevated crude oil prices and cautious global cues outweighed gains in information technology shares. Investors also remained focused on the June-quarter earnings season and developments in the Middle East ahead of the closely watched U.S. non-farm payrolls report. 

The Nifty 50 fell 0.27% to close at 24,570.65, while the BSE Sensex declined 0.58% to settle at 78,499.17. 

Despite Friday’s decline, both indices ended the week with gains of around 1% each, extending their winning streak to a second consecutive week. Investor sentiment has been underpinned by steady foreign institutional investor (FII) inflows, with overseas investors purchasing a net $1.3 billion worth of Indian equities so far in August after buying $2.1 billion in July. 

Financial Stocks Lead Declines 

Financials bore the brunt of Friday’s selling, with the Nifty Private Bank index emerging as one of the weakest sectoral performers. 

Bajaj Finance dropped 6%, while Bajaj Finserv lost 3.7% after the Reserve Bank of India (RBI) proposed stricter norms for revolving credit products offered by non-bank lenders. The draft regulations sparked concerns over the growth outlook for the NBFC sector and weighed on broader financial stocks. 

Higher crude oil prices also kept investors cautious. Brent crude traded above $83 a barrel after uncertainty resurfaced over plans to reopen the Strait of Hormuz, renewing concerns over global energy supplies. Firm oil prices are generally viewed as negative for India because they can fuel inflation and widen the current account deficit. 

IT Emerges as the Bright Spot 

Information technology stocks bucked the broader market weakness, providing support to the benchmark indices. 

Investors rotated into export-oriented technology companies as a relatively defensive play ahead of the U.S. jobs report, while select automobile stocks also attracted buying interest. The strength in IT helped offset part of the losses triggered by the sell-off in financial counters. 

Broader markets showed resilience, with selective buying in mid-cap stocks even as overall sentiment remained subdued. 

Earnings Drive Stock-Specific Action 

The June-quarter earnings season continued to dominate stock-specific moves. 

Britannia Industries rallied 2% after reporting profit growth and upbeat outlook. Hero MotoCorp gained 3% following a strong rise in quarterly profit, while Kalyan Jewellers advanced 1.4% after receiving a positive brokerage view. Hindalco Industries rose 3.2% after profit surged 75% to a record. State Bank of India rose over 1% after profit beat estimates. 

Investors also awaited earnings from Titan Company. 

Global Cues Remain Mixed 

Global markets remained cautious ahead of the release of the U.S. non-farm payrolls report, which is expected to provide fresh clues on the Federal Reserve’s interest-rate trajectory. 

While diplomatic efforts between the United States and Iran continued, uncertainty surrounding shipping through the Strait of Hormuz kept oil prices elevated. Combined with persistent geopolitical risks and the ongoing earnings season, these factors are expected to keep Indian markets driven by stock-specific developments in the near term. 

Source

•  NSE
• BSE