Market Open Report Today, August 4: Sensex Adds 126 pts, Nifty Sheds 158 pts Reversing Part Of Gains From New Close Mechanism

Mumbai, Aug 4: The two headline indices turned divergent in early trade. The BSE Sensex was trading 126.08 points, or 0.16 per cent, higher at 78,765.11, at 9.26 am while the Nifty 50 slipped 157.70 points, or 0.64 per cent, to 24,616.60, giving up some of the previous session’s gains, when a new closing-price mechanism introduced by the exchanges triggered a sharp rally in Indian equities.

The mixed start comes as Wall Street closed sharply higher on Monday, with the Dow notching a record close, on signs of easing US-Iran tensions after Trump said talks with Tehran were under way, a claim Iran promptly denied. Oil ticked up on Tuesday after tumbling a session earlier, even as the Hormuz standoff kept a floor under crude. After a four-day rally, the tone on Dalal Street stays cautiously optimistic.

Gainers & Losers 

Among gainers, Hindalco Industries (HINDALCO) rose 1.04 per cent to an LTP of Rs 1,005.2 from a previous close of Rs 994.9, Adani Ports and Special Economic Zone (ADANIPORTS) gained 0.71 per cent to Rs 1,713.1 versus Rs 1,701, Trent (TRENT) advanced 0.45 per cent to Rs 3,063.6 from Rs 3,050, Jio Financial Services (JIOFIN) added 0.34 per cent to Rs 263.9 against Rs 263, and Eternal (ETERNAL) rose 0.32 per cent to Rs 311.5 from Rs 310.5.  

Among losers, Grasim Industries (GRASIM) tumbled 3.4 per cent to Rs 3,149.3 from Rs 3,260, Titan Company (TITAN) fell 2.2 per cent to Rs 4,889.8 versus Rs 5,000, SBI Life Insurance (SBILIFE) dropped 2.05 per cent to Rs 1,875.8 from Rs 1,915, Bajaj Auto (BAJAJ-AUTO) fell 1.76 per cent to Rs 11,647 against Rs 11,856, and Dr Reddy’s Laboratories (DRREDDY) slipped 1.46 per cent to Rs 1,162.8 from Rs 1,180. 

Broader Markets & Sectoral Performance 

Among broad market indices, gainers were led by the Nifty Smallcap 100 (up 0.38 per cent), Microcap 250 (0.34 per cent), Smallcap 500 (0.26 per cent) and Smallcap 250 (0.22 per cent), even as the Nifty Bank (down 0.73 per cent), Nifty 50 (0.64 per cent), Financial Services (0.58 per cent) and Nifty 100 (0.57 per cent) declined. Among sectoral gauges, the Nifty Metal (up 0.48 per cent), EV and New Age Automotive (0.15 per cent), Capital Markets (0.06 per cent) and Energy (0.05 per cent) gained, while the Nifty Realty (down 1.03 per cent), IT (0.97 per cent), FMCG (0.95 per cent) and Private Bank (0.73 per cent) were the biggest laggards. 

Iran War 

Trump said talks with Iran were under way and called it a “last chance” for Tehran to sign a deal ending the five-month-old war, but Iranian spokesman Esmail Baghaei denied any negotiations were scheduled. Trump later claimed Iran’s leadership had sought a meeting and more talks were planned. The Strait of Hormuz remains the key flashpoint, with Washington and Tehran differing over whether the June memorandum required Iran to open the waterway. The contradictory statements have kept prospects for a resolution uncertain, even as easing fears lifted risk assets on Monday. 

Asian Stocks on Tuesday Morning 

Asian markets were mixed on Tuesday, with Australia’s S&P ASX All Ordinaries up 1.26 per cent and Pakistan’s KSE 100 up 1.20 per cent. Japan’s Nikkei 225 fell 0.66 per cent and Hong Kong’s Hang Seng slipped 0.49 per cent, reflecting lingering Iran caution. China’s Shanghai Composite and Indonesia’s Jakarta Composite also edged lower. 

US Markets on Monday 

All major US indices ended sharply higher on Monday, with the Dow surging 1.32 per cent to a record closing high of 53,178.41. The S&P 500 gained 1.48 per cent to 7,600.50 and the Nasdaq jumped 2.13 per cent to 25,913.90, on hopes of easing Iran tensions. The rally set a constructive tone heading into Tuesday’s session. 

Oil Prices 

Oil ticked up on Tuesday after a sharp selloff a session earlier, as Middle East supply concerns persisted despite uncertain prospects for a US-Iran deal. Brent crude rose 0.7 per cent to $84.39 a barrel, recovering after a 7 per cent slide on Monday to a three-week low. WTI gained 0.7 per cent to $80.95, having fallen over 5 per cent earlier to its lowest in nearly a week. Analysts said the move lower stays fragile, vulnerable to a rebound should tensions around Hormuz escalate again. 

Indian Markets on Monday 

The Sensex and Nifty extended their winning streak to a fourth straight session on Monday, led by IT stocks. The Sensex rose 0.70 per cent to close at 78,639.03, while the Nifty advanced 1.60 per cent to 24,774.30, closing above 24,700 for the first time in recent sessions. The Nifty IT index gained over 3 per cent, with InterGlobe Aviation, TCS, Infosys, Shriram Finance and Grasim among top performers, while Sun Pharma, Apollo Hospitals, Maruti Suzuki, ONGC and Tech Mahindra lagged. Barring Nifty Media, all sectoral indices ended in the green on Monday, a rally that has paused for breath on Tuesday morning. 

Sources

• bseindia.com and nseindia.com