Indian stocks remained under pressure in Wednesday’s trade on August 12, as a sustained rise in crude oil prices kept investor sentiment fragile. Weakness in financial stocks and a sharp selloff in technology stocks also weighed on the market, pushing August returns into negative territory.
The Nifty was down 0.15% at 24,435, while the Sensex fell 0.34% to 77,889. The broader markets also ended lower. Among sectoral indices, IT, FMCG, consumer durables and auto were the top losers, while PSU banks, media, metals, and oil & gas ended in the green.
Crude oil prices remained higher for the sixth straight session, rekindling inflation concerns as India meets around 85% of its crude oil requirements through imports. Hopes of an immediate agreement to reopen the Strait of Hormuz have faded as the US and Iran continue to trade demands over reparations.
Vinod Nair, head of research at Geojit Investments, said, “Markets remained on edge ahead of key inflation readings in India and the U.S., with policymakers on both sides underscoring a data-driven approach amid heightened global uncertainty.”
“Against this backdrop, elevated crude oil prices, which retested the $90/barrel level, weighed on investor confidence and triggered broad-based risk-off selling despite supportive cues from Asian peers,” he further added.
Q1 results weigh on stocks; Tata Group shares also under pressure
Weaker-than-expected performance in the June quarter dragged the stock down 11.2% to ₹910 apiece. PI Industries, Jubilant Pharmova, RHI Magnesita India and AIA Engineering also plunged more than 5% each following their June-quarter results.
Redington shares came under profit booking, falling 4.3% to ₹339 apiece following the stock’s recent run-up. Despite Wednesday’s decline, the stock remains up 5.52% so far in August. Meanwhile, losses in Godrej Industries deepened during the session, with the stock falling 4.3% to its lowest level in more than a month.
Major Tata Group stocks came under heavy selling pressure after Tata Sons Chairman N. Chandrasekaran resigned. TCS led the losses, falling 4%, followed by Tata Technologies and Tata Elxsi, which declined 2.2% and 1.8%, respectively.
Other stocks, including Fortis Healthcare, Deepak Nitrite, Balrampur Chini Mills, UNO Minda, Global Health, NLC India, Wockhardt, Sonata Software and Acutaas Chemicals, also declined more than 3% each.
