The Indian stock market remained under pressure on Monday, August 24, tracking weakness in global markets as pressure in bond markets persisted and investors awaited further clarity on how tensions in the Middle East would unfold, with the US preparing to announce new sanctions on Iran.
Domestic factors also remained unfavourable for bulls, as financial stocks witnessed heavy selling, while auto and FMCG shares also ended lower.
The Nifty 50 closed 0.14% lower at the 24,219 level, while the S&P BSE Sensex fell 0.22% to 77,370. The broader market also mirrored the weak trend, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices closing in the red.
Global bond yields continued to remain elevated as worsening government fiscal outlooks and rising inflation concerns prompted investors to demand higher returns to compensate for growing economic risks.
After rising for a second consecutive week, crude oil prices retreated modestly as traders awaited greater clarity after the US said it would impose sweeping economic sanctions in an effort to break the impasse with Iran, adding further pressure on an economy already battered by earlier sanctions and a US naval blockade.
Tehran dismissed the sanctions threat as another failed attempt to pressure Iran, saying it had experience in dealing with economic blockades and could withstand the measures while maintaining trade and economic ties with other countries.
BLS International leads losses as Schneider Electric, Gabriel India extend sell-off
BLS International emerged as the top laggard among Nifty 500 stocks, falling 10.5% to ₹242 apiece following media reports alleging visa fraud. Aegis Logistics also came under renewed selling pressure, dropping 5.4% to ₹1,342.
Losses in Schneider Electric persisted for the fourth straight session, with the stock falling another 5% to ₹1,155, its lowest level in more than two months. Gabriel India also extended its losing streak to a fourth consecutive session, tumbling 4.3% to ₹1,359.
Tenneco Clean Air, Coromandel International, Balrampur Chini Mills, CreditAccess Grameen, Godrej Industries, KPR Mill, Five-Star Business Finance, Cohance Lifesciences, Tata Technologies, Poonawalla Fincorp and Zee Entertainment were among the other major laggards, declining more than 3%.
Among PSU banks, Bank of Baroda was the worst performer, falling 2.4%, while Canara Bank also declined 2.2%.
Urban Company, Vishal Mega Mart and IDBI Bank shine
Despite weak overall market sentiment, select stocks managed to attract buying interest, with Vishal Mega Mart shares jumping 9.4% after the company announced the reappointment of Gunender Kapur as its managing director and chief executive officer (CEO).
IDBI Bank shares closed 7% higher at ₹88.50 apiece after moving sideways for more than five weeks.
Meanwhile, the sustained rally in gold prices kept Muthoot Finance in investors’ spotlight, with the stock gaining another 5.6% to ₹3,199. Keeping its winning streak intact, Urban Company shares rose another 6.46%, settling at a 10-month high of ₹168 apiece.
PTC Industries also remained higher for the second consecutive session, surging 5% to ₹21,670.
Other stocks, including Capri Global Capital, HFCL, Hexaware Technologies, Engineers India, Siemens, Zydus Wellness, Redington, Welspun Corp., and Prime Focus, also gained more than 3%.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
