Dalal Street On Edge As Benchmarks Remain Rangebound, Sensex Tests 24,600, Nifty Marginally Up

Indian equity markets remained largely rangebound during Monday’s trading session as benchmark indices struggled to establish a firm direction. While positive global cues offered some support, elevated crude oil prices and caution at higher levels kept gains in check.

The BSE Sensex settled trading under 78,550, rising close to 50 points, while the NSE Nifty50 inched closer to 24,600, logging a gain of merely 13 points, as markets ended.

At around 1:45 pm, the Sensex was trading 105.69 points, or 0.13 per cent, higher at 78,604.86. The Nifty was up 38.05 points, or 0.15 per cent, at 24,608.70. Both indices moved between positive and negative territory through the session, reflecting a lack of conviction among investors.

Midcaps Outperform; Realty Leads Sectoral Gains

The broader market displayed relatively stronger momentum, with the Nifty Midcap index gaining around 0.7 per cent, while the small-cap index remained largely flat.

The Nifty Bank index traded under pressure near the 57,600 level, declining around 0.2 per cent as losses in PSU banking stocks outweighed gains among select private-sector lenders.

Nifty Realty was among the strongest sectoral performers, rising around 1.6 per cent, led by buying interest in stocks including DLF, Godrej Properties and Phoenix Mills.

The Nifty Auto index also remained in positive territory, supported by gains in Hero MotoCorp, Bosch and TVS Motor. IT stocks traded higher as softer US employment data reduced expectations of an imminent interest rate hike by the US Federal Reserve.

In contrast, the Nifty PSU Bank index fell around 1.3 per cent, with SBI, Bank of India and Canara Bank emerging as key drags. Nifty PSE and pharmaceutical stocks also remained weak.

Hitachi Energy, Paytm, Titan Among Key Movers

Among individual stocks, Hitachi Energy India surged more than 11 per cent to around Rs 36,240 following strong quarterly earnings and positive commentary on its growth outlook. The company reported a more than 123 per cent year-on-year rise in quarterly profit.

Paytm gained around 9 per cent to Rs 1,573 after favourable analyst commentary helped the stock reach a fresh 52-week high.

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Titan Company advanced nearly 3 per cent after reporting a 63 per cent year-on-year increase in Q1 consolidated net profit to Rs 1,777 crore, driven by robust jewellery demand.

Power Finance Corporation, however, declined more than 8 per cent as investors reacted to concerns over net interest income, margins and the growth outlook following its quarterly results.

IT, Consumer Stocks Support Benchmarks

Among Sensex constituents, Titan, Bajaj Finance, Bajaj Finserv, Tata Steel, Asian Paints and Infosys were among the prominent gainers.

On the other hand, State Bank of India, Eternal, NTPC, ITC and Tata Consultancy Services ended among the major laggards.

The broader market also managed to hold on to modest gains. The BSE MidCap Select index rose 0.22 per cent, while the SmallCap Select index gained 0.16 per cent.

Crude Oil Rises As Hormuz Uncertainty Persists

Crude oil prices remained a key concern for investors. Brent crude, the global oil benchmark, rose 1.10 per cent to $84.47 per barrel.

Analysts said uncertainty over the reopening of the Strait of Hormuz continued to restrict risk appetite.

According to Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, the market remained largely directionless as the absence of concrete progress towards a lasting settlement in West Asia, coupled with Iran's tougher position on reopening the Strait of Hormuz, discouraged aggressive buying.

Earnings Provide Some Support

While geopolitical uncertainty weighed on sentiment, corporate earnings offered some relief to investors.

Vinod Nair, Head of Research at Geojit Investments Limited, said markets remained constrained by the uncertainty surrounding the Strait of Hormuz, although encouraging earnings helped support broader sentiment.

He also noted that weaker-than-expected US jobs data had reduced expectations of a more restrictive Federal Reserve policy, shifting investor attention towards upcoming US inflation data for clues on interest rates and bond yields.

FII, DII Flows and Global Cues in Focus

Institutional activity had provided some support in the previous session. On August 7, FIIs were net buyers of Rs 480.24 crore in the cash market, while DIIs purchased shares worth Rs 235.56 crore. Data for August 10 will be released after the market closes.

Asian markets traded higher on Monday after Wall Street indices ended at record levels on Friday, supported by softer US jobs data. Japan’s Nikkei gained around 2 per cent.

However, crude oil remained a key concern for domestic equities. Brent crude was trading near $83.50 per barrel amid continued uncertainty surrounding the Strait of Hormuz.