Indian equity markets ended Wednesday’s session, August 5, mixed, erasing all of their early gains as weakness in private banking and IT stocks outweighed gains in metals and auto shares. Persistent uncertainty over a potential truce in the Middle East also weighed on investor sentiment.
The Nifty 50 slipped 0.18% to close at 24,570, while the Sensex ended 0.09% lower at 78,501. The broader markets, however, outperformed, with the Nifty Midcap 100 and Nifty Smallcap 100 indices gaining 0.18% and 0.76%, respectively.
As widely expected, the Reserve Bank of India (RBI) kept the repo rate unchanged for the fourth consecutive policy meeting, with policymakers opting to await more data to assess the impact of elevated crude oil prices and a below-normal monsoon on inflation.
Announcing the policy decision, RBI Governor Sanjay Malhotra said headline inflation is expected to rise in the near term and peak in the third quarter of FY27, largely due to food and fuel prices, before easing thereafter.
Among sectoral indices, Nifty Metal, Auto, Realty, and Cement witnessed strong buying interest, while Media, Private Bank, FMCG, and Pharma stocks ended in the red.
Meanwhile, uncertainty over the reopening of the Strait of Hormuz continued to keep investors cautious, even after US President Donald Trump reiterated that the strategic waterway could reopen “tomorrow or the next day,” adding that “a lot of progress has been made,” according to an AP report.
Reports of US-Iran talks on Tuesday had fueled expectations of an end to the five-month conflict, pushing oil prices lower and supporting global equity markets.
However, despite growing optimism over a possible agreement to reopen the Strait of Hormuz, attacks on commercial shipping in the region have continued, underscoring the fragile security situation, the report showed.
Hindustan Copper, Ola Electric spearhead gains
Hindustan Copper emerged as the top gainer, surging 8.3% to ₹533 per share. It was followed by Ola Electric, which jumped 7.6% to ₹41.50 after the company signed its first memorandum of understanding (MoU) with Axis Energy for utility-scale energy storage projects.
Engineers India witnessed renewed buying interest, climbing 7% to ₹240 per share. Go Digit General Insurance and R R Kabel also gained 6.3% each.
Among metal stocks, Hindustan Zinc, GMDC, and Vedanta advanced more than 3% each.
Extending its winning streak to the fourth consecutive session, HFCL rose another 4.7% to ₹212 per share, taking its gains in August to nearly 10%. Olectra Greentech also remained in demand, climbing 4.2% to ₹1,403 per share.
Olectra Greentech has been rallying after the government unveiled its ₹9,585-crore vehicle replacement scheme.
Meanwhile, PNB Housing Finance gained 4% to ₹1,121 per share after reporting better-than-expected quarterly earnings.
Other notable gainers included Usha Martin, Gabriel India, Asahi India Glass, Mphasis, Action Construction Equipment, Shriram Finance, Godrej Properties, 360 One WAM, Motherson Sumi Wiring India, and Tata Capital, all of which rose more than 3%.
Weak earnings drag C.E. Info Systems, Zee and Kalyan Jewellers
C.E. Info Systems (MapmyIndia) led the losers’ list, plunging 8.2% to ₹1,046 per share after its June quarter earnings failed to impress the Street. Selling pressure in Zee Entertainment also intensified, with the stock tumbling another 5% to ₹94.55 per share, its lowest level in more than a month.
Kalyan Jewellers declined 3.7% to ₹569 per share as investors reacted negatively to its June quarter results, which were weighed down by margin pressure despite healthy revenue growth.
Other notable laggards included MCX, Sonata Software, Zydus Wellness, Balrampur Chini Mills, GlaxoSmithKline Pharmaceuticals, and Jaiprakash Power Ventures, all of which fell more than 3%.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
