Sensex Gains, Nifty Slips as RBI Holds Rates, Mideast Tensions Ease

Mumbai, Aug 5: Indian equity benchmarks traded in a mixed fashion in Wednesday’s midday session, with the Sensex holding on to modest gains while the Nifty 50 slipped after the Reserve Bank of India kept interest rates unchanged. At 12 noon, the BSE Sensex was at 78,575.32, up 146.37 points, or 0.19 per cent, while the
Nifty 50 was down 44.20 points, or 0.18 per cent, at 24,570.70, amid easing Middle East tensions. The revised closing auction framework for futures-and-options stocks has reshaped end-of-day price discovery, resulting in a pronounced divergence between the Nifty and Sensex.

Gainers & Losers 

Among individual stocks, Grasim Industries (GRASIM) led gainers, rising to an LTP of Rs 3,204.4 from a previous close of Rs 3,138, up 2.12 per cent, while Larsen & Toubro (LT) climbed to Rs 4,055 against Rs 3,990, up 1.63 per cent. HDFC Life Insurance (HDFCLIFE) advanced to Rs 543.95 from Rs 535.95, up 1.49 per cent, Shriram Finance (SHRIRAMFIN) rose to Rs 1,103.4 from Rs 1,087.3, up 1.48 per cent, and Mahindra & Mahindra (M&M) gained one per cent to Rs 3,467.3 versus Rs 3,433.  

On the losing side, Bharat Electronics (BEL) fell to Rs 386.3 from Rs 391.5, down 1.33 per cent, and Apollo Hospitals (APOLLOHOSP) slipped to Rs 8,931 from Rs 9,050, down 1.31 per cent. Tata Consultancy Services (TCS) dropped to Rs 2,429.6 from Rs 2,460, down 1.24 per cent, ITC (ITC) fell to Rs 285.5 from Rs 289, down 1.21 per cent, and Coal India (COALINDIA) eased to Rs 412.95 from Rs 417.6, down 1.11 per cent. 

Broad Markets & Sectoral Performance 

Among broad market indices, the Nifty Smallcap 100 gained 0.69 per cent, the Nifty Next 50 rose 0.37 per cent and the Nifty Midcap Select added 0.09 per cent, while the Nifty Bank slipped 0.39 per cent, the Nifty Financial Services declined 0.21 per cent and the Nifty 50 eased 0.10 per cent. Sectorally, the Nifty Realty jumped 2.01 per cent, the Nifty Cement gained 1.14 per cent and the Nifty Auto added 1.13 per cent, while the Nifty Capital Markets fell 0.75 per cent, the Nifty CPSE lost 0.66 per cent and the Nifty Private Bank declined 0.59 per cent. 

RBI Keeps Rates Unchanged 

The Reserve Bank of India kept its benchmark repo rate unchanged at 5.25 per cent, extending its pause, Governor Sanjay Malhotra announced on Wednesday. The Monetary Policy Committee also retained its “neutral” stance, leaving the Standing Deposit Facility rate at 5 per cent and the Marginal Standing Facility and Bank Rate at 5.5 per cent. 

Malhotra said the decision followed an assessment of evolving domestic and global conditions, with April-June growth coming in better than expected and services-sector buoyancy likely to support urban consumption ahead. He flagged renewed West Asia tensions, global market volatility, and El Nino-related farm-output risks as factors the MPC would keep watching. Market participants called the pause on expected lines, noting the neutral stance leaves room for a shift later in the year should growth momentum weaken. 

Iran War 

Tensions in West Asia showed signs of easing after Qatar said mediators were making progress in efforts to end the US-Iran war, a development that had already driven oil sharply lower in the previous session. The Strait of Hormuz remained largely shut and another vessel came under attack while crossing it, even as President Trump said talks with Tehran had begun, a claim Iranian officials denied. Qatar, Pakistan and Oman continued shuttle diplomacy between Washington and Tehran, citing headway in narrowing differences. 

Asian & US Markets 

Asian markets rallied overnight, led by Japan’s Nikkei 225, which surged 3.64 per cent, while Australia’s ASX, Malaysia’s KLCI, Indonesia’s JSX Composite and China’s Shanghai Composite also ended higher, with Pakistan’s KSE 100 and Thailand’s SET among the few decliners. On Wall Street, the Nasdaq jumped 2.59 per cent, the S&P 500 gained 1.79 per cent and the Dow rose 1.71 per cent, reflecting optimism over easing Middle East tensions. 

Oil Prices 

Crude oil extended its decline on Wednesday after steep falls over the previous two sessions, with Brent futures dropping 92 cents, or about 1.2 per cent, to $78.44 a barrel, taking its weekly loss past 12 per cent. US West Texas Intermediate futures lost $1.07, or 1.4 per cent, to $74.70 a barrel, down over 11 per cent this week, as investors awaited confirmation that mediation would restore shipping through the blockaded Strait of Hormuz. 

Indian Markets in Morning Session 

Indian benchmarks had opened on a divergent note earlier in the day, with the Sensex and Nifty 50 moving in opposite directions even as global cues turned supportive. The Sensex rose 356.39 points, or 0.45 per cent, to 78,785.34 at 9:30 am, while the Nifty 50 slipped 4.60 points, or 0.02 per cent, to 24,610.30 at 9:31 am, with sentiment aided by progress on the US-Iran war and a strong overnight rally in Asian and US markets ahead of the RBI’s MPC outcome. 

Source

• NSE
• BSE
• Reuters