Indian equity benchmarks ended Friday's session on a cautious note, marking their third consecutive week of losses as the Nifty 50 fell 0.83% to close at 24,366, while the BSE Sensex declined 0.65% to end at 78,009.25. According to Moneycontrol Pro, the broader market showed mixed performance with the Nifty Smallcap 100 slipping 0.65% and the Nifty Midcap 100 managing a 0.5% gain. The India Volatility Index (VIX) eased by 6.9% during the week as FIIs bought equities worth ₹1,228.24 crore, while the month's net outflows remained negative at ₹2,336.68 crore. Market capitalisation of BSE-listed companies eroded by more than ₹1 lakh crore during the week, with the rupee also giving up ground, closing 22 paise weaker at 95.43 against the dollar. Siddhartha Khemka from Motilal Oswal noted that benchmark indices remained subdued this week as the US-Iran deal, which was expected last weekend, was deferred again, with oil prices spiking after the delay, adding pressure on Indian equities.
Sectorally, Nifty Media led the winners with a 2.2% rise, followed by Capital Markets at 1.6%, Consumer Durables at 1.3%, Realty at 1%, and Defence at 0.8%, while Metal stocks dropped 1.9%, FMCG fell 1.6%, Auto declined 1.5%, Healthcare slipped 1.2%, and Oil & Gas eased 1%. Among individual performers, Apollo Hospitals, Bharti Airtel, and Adani Enterprises led gains, while Tata Motors Passenger Vehicles, Jio Financial Services, and ONGC were the session's biggest drags. The Nifty Midcap 100 and Nifty Smallcap 100 both fell 0.65% on Friday, with the midcap index gaining 0.5% for the week while the Smallcap 100 fell 0.65%. Market breadth deteriorated significantly, with of the total 4,502 stocks traded on Friday, 1,896 advanced and 2,393 declined at the close. This represents a shift from Thursday's session where Nifty Media emerged as the strongest sector, gaining 0.96% to close at 1,590.1, with the index showing strong momentum over the past month, gaining 6.00%.
Brent crude oil October futures briefly touched the $90 per barrel mark before pulling back to trade around $87, as fresh reports of attacks near the Strait of Hormuz kept energy markets on edge. According to Moneycontrol Pro, the absence of any breakthrough in talks between the United States and Iran added to unease, with the US threat of an indefinite naval blockade of Iran further heightening uncertainty surrounding the Middle East and crude shipments. Ajit Mishra from Religare Broking noted that investor sentiment remained subdued as Brent crude hovered around the $87 per barrel mark amid concerns over potential disruptions to global energy supplies. Crude oil futures rose by more than $1 a barrel on Friday, driven by attacks on tankers and the absence of any significant progress toward a peace deal between the Trump administration and Iran's leadership. Brent crude settled at $88.52 a barrel, gaining $1.45, or 1.67%, while U.S. West Texas Intermediate (WTI) futures ended at $82.40 a barrel, up $1.15, or 1.42%. For the week, Brent and WTI were headed for gains of 6.0% and 5.4% respectively. Technically, Nifty is hovering around the confluence zone of its 100-day and 200-day Exponential Moving Averages (EMA), with immediate support around 24,130-24,000 levels and resistance at 24,620-24,700.
Foreign portfolio investors net bought shares worth ₹508 crore, while domestic institutions were buyers to the tune of ₹356 crore during the week. According to The Economic Times, overall earnings breadth has improved, with outperformance seen in the broader market, as mid- and small-caps have delivered stronger growth and could remain better placed going ahead. The broader market outperformed the benchmarks, with the BSE Midcap declining a modest 0.13%, while the BSE Smallcap gained 0.10% during the week. Investors' wealth declined by ₹1.18 lakh crore during the week, taking the total market capitalisation of BSE-listed companies to ₹492.16 lakh crore. TCS was the top Sensex loser during the week, declining 3.86%, followed by ITC, UltraTech Cement, SBI and Tata Steel, while Titan Company, BEL, Bharti Airtel, Bajaj Finserv and HCL Technologies were the top gainers. Foreign institutional investors (FIIs) turned net buyers of Indian equities on August 14, purchasing shares worth ₹12,854.44 crore and selling equities valued at ₹12,346.32 crore, resulting in net purchases of ₹508.12 crore. Domestic institutional investors (DIIs) bought shares worth ₹14,295.49 crore and sold shares worth ₹13,939.09 crore, leading to net buying of ₹356.40 crore.
On the weekly timeframe, the Nifty closed at 24,366, down 0.83% for the week, with the index continuing to trade above the key yellow trendline which has consistently served as strong support. According to Moneycontrol Pro, the index has closed above the 40-week Exponential Moving Average, confirming a strengthening bullish trend, though the recent upper trendline is acting as a major resistance zone. If the index forms one more bearish weekly candle from this level, it would confirm the trendline as a rejection zone, indicating potential short-term bearishness. The FII Net Index Futures Position indicator has formed a higher low and broken above its previous swing high, indicating an improvement in FII positioning from extreme short positions. The Put-Call Ratio based on Open Interest, smoothed with a 9-period EMA, has risen above 0.92 before declining to the current level of 0.82, suggesting potential profit-booking in the near term. The Stocks with RMI Buy Daily Nifty 50 indicator currently stands at 28% and is moving toward the oversold range of 20-10%, historically indicating a possible rebound. Looking ahead, the coming week is likely to stay driven by crude oil prices as reports of continued escalation around the Strait of Hormuz continue, with oil prices above $90 a barrel potentially souring sentiment.
