Sensex Slips Into Red, Nifty Stays Above 24,200 as Metal Stocks Rally

Indian benchmark indices opened higher on Thursday, August 27, but quickly surrendered their gains as selling pressure emerged in heavyweight stocks.

The Sensex slipped into negative territory, while the Nifty 50 hovered near the 24,200 level. The Sensex began the session at 77,576.76, compared with Wednesday’s close of 77,472.94. By around 9:31 am, it had fallen to 77,394.46, down 78.48 points or 0.10%. The Nifty opened at 24,277.60 and was nearly unchanged at 24,207.65, against its previous close of 24,207.75.

Broader markets remained relatively firm, with the Nifty Midcap 100 rising 0.25% and the Nifty Smallcap 100 advancing 0.16%. The India VIX, however, climbed 2.93% to 10.88, signalling a rise in market volatility.

Sectoral Trends

Sectoral performance was mixed in early trading. Nifty Metal gained 0.32%, while Nifty Healthcare rose 0.22% and Nifty Pharma advanced 0.18%. Nifty Consumer Durables increased 0.29%, while Nifty Oil & Gas added 0.13%.

Nifty IT was almost unchanged with a 0.01% gain, and Nifty Private Bank edged up 0.10%.

On the downside, Nifty Cement declined 0.51%, Nifty Auto fell 0.45% and Nifty FMCG slipped 0.04%. Nifty PSU Bank was also down 0.08%.

Among Sensex constituents, Bajaj Finance led the gainers with a 1.17% rise. BEL climbed 1.13%, while Kotak Mahindra Bank gained 0.94%. Tech Mahindra, Tata Steel and Eternal were also trading higher.

HDFC Bank emerged as the biggest drag on the index, falling 1.21%. HCL Technologies declined 1%, while M&M, Power Grid, Bharti Airtel, Maruti and TCS also traded lower.

Global Markets Take Cues From Nvidia

Asian markets were mostly higher on Thursday after Nvidia reported stronger-than-expected quarterly results, boosting sentiment around technology and semiconductor stocks. South Korea’s Kospi gained around 1.5%, while Taiwan’s benchmark index rose 0.9%. Japan’s Nikkei 225, however, traded lower.

Nvidia’s results and upbeat revenue outlook provided fresh support to the artificial intelligence trade and pushed US equity futures higher. The company reported that quarterly revenue more than doubled, while its forecast for third-quarter revenue exceeded Wall Street expectations.

Nvidia shares jumped 4.7% in after-hours trading, while S&P 500 e-mini futures rose 0.4%.

The company’s second-quarter data-centre revenue surged 117% year-on-year to $8.9 billion. Nvidia also projected third-quarter revenue of about $10.8 billion. CEO Jensen Huang and other executives indicated that the company expects strong growth to continue, with fiscal 2028 revenue projected to rise 70%.

Despite the positive technology outlook, persistent US inflation remains a concern for investors. The US personal consumption expenditures index rose 0.2% in July, with the annual inflation rate at 3.7%, well above the Federal Reserve’s 2% target.

Markets are now awaiting Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole symposium on Friday for further signals on the interest-rate outlook.

Crude Prices, Geopolitical Risks in Focus

Brent crude was trading near $87 a barrel and remained on track for a fourth consecutive session of declines. Lower crude prices could provide some relief to India by easing inflationary pressure, narrowing the trade deficit and supporting the rupee.

However, geopolitical risks remain a key concern, particularly developments around the Strait of Hormuz and the wider West Asia region.

Expert View

Ponmudi R, CEO of Enrich Money, said easing crude prices were creating a more supportive near-term macroeconomic environment for Indian equities and pointed to a steady market setup.

From a technical perspective, he identified the 24,300-24,400 range as a key resistance zone for the Nifty. A sustained move above 24,400, he said, could strengthen the recovery and open the way towards 24,500-24,600.

On the downside, 24,200 remains the immediate support level, followed by the crucial 24,000 mark. Sustained trading below 24,200 could keep the index under pressure, while a decisive breakout above 24,400 may signal stronger recovery momentum.