The Indian stock market ended Wednesday’s trade, August 26, marginally lower, as gains in banking and metal stocks were offset by a sell-off in the technology and consumer goods sectors.
The Nifty 50 dropped 0.52% to 24,207, while the Sensex declined 0.05% to 77,614. The broader markets were mixed, with the Nifty Midcap 100 index slipping 0.10%, while the Nifty Smallcap 100 index gained 0.81%.
Among the sectoral indices, cement, chemicals, private banks, and PSU banks were among the top performers, while technology, FMCG, consumer durables, realty, and auto stocks emerged as the major laggards.
Vinod Nair, Head of Research at Geojit Investments, said, “The domestic market ended marginally lower, giving up early gains as sectoral divergence weighed on benchmarks through the session. Inflation concerns receded on tempered US sanctions on Iran, easing domestic bond yields and lifting banking stocks, while metals gained on better realization prospects. However, these gains were largely offset by weakness in IT stocks after the U.S. paused visa appointments amid an immigration crackdown, which rekindled margin pressure concerns.”
In the commodity market, crude oil prices fell on hopes that the Strait of Hormuz could reopen after Iran resumed talks with Oman on managing the strategic waterway. Brent crude, the international benchmark, fell $1.60 to $86.98 a barrel.
The top diplomats of Iran and Oman reportedly met on Tuesday to discuss a phased approach to managing ship traffic through the Strait of Hormuz. Earlier, US President Donald Trump had threatened to bomb Oman if the country got in the way of the US blockade of Iranian ships in the Strait of Hormuz.
Oil prices also remained under pressure as investors kept an eye on the ongoing talks. A delegation from Pakistan also held talks with Iran’s president on reviving negotiations to end the Iran-US conflict, the Associated Press (AP) reported, citing the Pakistani military.
