Indian equity markets traded with mixed bias on Wednesday, August 26, as SENSEX gained 35.40 points (0.05%) to 77,691.49 while NIFTY50 declined 52.25 points (0.21%) to 24,282.30 as of 12:37 PM. According to PL Capital, the market witnessed continued selective buying interest in mid- and small-cap stocks despite weakness in the benchmark indices. The Nifty MidCap index traded 0.19% higher and the Nifty SmallCap index gained 0.51%, indicating broader market strength. Earlier in the session, domestic equities opened on a firmer note, supported by gains in select banking and financial stocks, but the Nifty 50 gave up its early gains as selling pressure emerged in key sectors.
The market witnessed significant sectoral divergence with IT stocks leading the decline at 1.47%, followed by FMCG (-0.95%), consumer durables (-0.93%), realty (-0.83%), auto (-0.74%), and oil & gas (-0.58%). However, banking and metal sectors provided strong support with Nifty PSU Bank index emerging as the strongest performer, rising around 1% as state-owned lenders witnessed renewed buying interest. According to PL Capital, among NIFTY 50 stocks, ICICI Bank, SBI Life Insurance Company and HDFC Life Insurance Company were among the top gainers, helping limit the downside in the benchmark index. The weakness in IT stocks was attributed to the US pausing visa appointments amid an immigration crackdown, creating margin pressure concerns for the sector.
The NIFTY50 index dropped below its important psychological level of 24,200, marking a significant technical development for the benchmark index. According to PL Capital, the index has immediate support around 24,240, followed by 24,200 and 24,100, with resistance expected in the 24,400-24,500 zone. The RSI has entered a bullish crossover, indicating an improvement in short-term momentum. Technical analysts noted that the breach of this psychological level indicates continued range-bound trading and caution among investors, with the index showing resilience despite early pressure.
In Asian markets, most major indices ended higher with Japan's Nikkei 225 gaining 0.68% to close at 66,304, Hong Kong's Hang Seng rising 0.50% to 25,640, Taiwan's weighted index advancing 1.45% to 45,832, and South Korea's KOSPI surging 0.96% to 6,808. However, Singapore's Straits Times Index declined 0.25% to 5,721. According to PL Capital, Brent crude prices eased to around USD 86.3 per barrel amid hopes of reduced geopolitical tensions and cooperation between Iran and Oman to reopen the Strait of Hormuz. This development provided relief to India's import-dependent economy and supported market sentiment, with softer crude prices positive for sectors such as aviation, paints and chemicals by reducing input costs.
