Sensex drops 455 points, Nifty slips below 24,600 as markets close in red amid volatile oil prices
New Delhi, August 7
Benchmark domestic equity indices closed the week in red, following broad-based profit-booking and selling pressure in key sectors, particularly private banks and financial stocks. The BSE Sensex dropped 455.59 points, or 0.58 per cent, to finish at 78,499.17 points, while the NSE Nifty 50 slipped 65.35 points, or 0.27 per cent, to close at 24,570.65 points.
Vinod Nair, Head of Research, Geojit Investments Limited sounded a cautious note, stating that, "Market sentiment remains measured as the absence of a definitive geopolitical resolution in the Middle East continues to keep crude oil prices volatile."
He noted that gold has strengthened on renewed safe-haven demand and a softer US dollar, with investors closely tracking the upcoming US non-farm payrolls data for further clarity on the Fed's policy trajectory.
"Domestically, earnings from several industry bellwethers have been in line with or ahead of expectations, providing a constructive backdrop for sector-specific optimism and investment opportunities. Notably, SBI's strong performance, underpinned by healthy credit growth, improving asset quality and resilient margins, has reinforced confidence in the banking and PSU banking segments, offering an important pillar of support to the broader market outlook," he said.
At the time of reporting, Brent Crude stood at USD 81.99, reflecting a drop of USD 0.50 (-0.60%), while Crude Oil stood at USD 77.07, down by USD 0.22 (-0.29%). Conversely, Gold showed positive performance, trading at USD 4,308.18 with a gain of USD 68.33 (+1.61%).
Analyzing the benchmark movements, Riyank Arora, Associate Vice President - HNI & Derivatives at Hedged.in, said, "Indian equity markets ended today's session on a weak note, with benchmark indices witnessing profit booking after the recent upmove. Selling pressure in select heavyweight stocks weighed on market sentiment, leading to a cautious close."
On the market trajectory, Arora mentioned that the market witnessed a healthy corrective session after recent gains with "profit booking emerging at higher levels. As long as key support levels remain intact, the overall trend continues to favour the bulls."
Global cues also presented a mixed picture across Asian markets, where the Nikkei 225 declined 0.29 per cent to 65,496.00 points, GIFT Nifty fell 0.40 per cent to 24,649.00 points, KOSPI lost 0.60 per cent to 6,258.77 points, and Taiwan Weighted dropped 0.39 per cent to 44,225.91 points.
On the other hand, Hang Seng gained 0.58 per cent to 25,679.00 points, Straits Times added 1.04 per cent to 5,698.43 points, and Shanghai Composite rose 1.01 per cent to 3,940.04 points.
In US markets, Dow Jones Futures traded higher by 0.05 per cent at 53,912.34 points, whereas S&P 500 declined 0.18 per cent to 7,709.96 points and Nasdaq fell 0.06 per cent to 26,348.35 points.
Commenting on the trading action, Market Analyst Vipin Dixena said, "Indian equity markets ended today's session on a weak note, with selling pressure visible across key sectors, particularly private banks and financial stocks. Rising crude oil prices remained an additional concern for investors, while the broader market also witnessed some profit booking after the recent upmove."
— ANI
Reader Comments
Classic profit booking after a good run. Nothing to panic about. For long-term investors like me, these dips are actually buying opportunities. SIP continue karo, tension mat lo! 💪
Interesting how Indian markets are reacting to global events. The US non-farm payroll data will definitely set the tone next week. Watching the Fed's next move closely from here.
Gold going up while stocks fall - classic safe haven movement. I have some gold ETF from last year, at least that's giving returns. But honestly, crude oil prices are the real headache for our economy. Petrol prices will rise again, inflation will rise, RBI won't cut rates... it's all connected! 🤦♂️
These market corrections are healthy after the recent rally. The fundamentals remain strong, especially in banking. SBI's asset quality improvement is particularly encouraging for the PSU banking segment.
I don't trust these so-called experts. They always say "market will recover" but what about small investors like us? My portfolio is down 3% this week. The volatility is too much for retail investors. Nifty support levels are all fine for them, but for us, it's our hard-earned money at stake! 😤
D Deepak U < We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.