Sensex, Nifty hit fresh intraday low; European markets trade with some gains
The domestic equity barometers extended losses and hit fresh intraday low in afternoon trade. Market sentiment remained cautious as investors monitored movements in US bond yields, developments in the US-Iran situation and other global cues. The Nifty traded tad above the 24,250 level.
At 13:26 IST, the barometer index, the S&P BSE Sensex was down 72.97 points or 0.09% to 77,583.12. The Nifty 50 index fell 78.05 points or 0.32% to 24,256.50.
The broader market outperformed the frontline indices. The BSE 150 MidCap Index rose 0.26% and the BSE 250 SmallCap Index added 0.62%.
The market breadth was positive. On the BSE, 2,310 shares rose and 1,811 shares fell. A total of 262 shares were unchanged.
Gainers & Losers:
Kotak Mahindra Bank (up 3.21%), HDFC Life (up 2.52%), Axis Bank (up 1.61%), SBI Life (up 1.32%) and Ultratech Cement (up 1.24%) were the top gainers.
Infosys (down 2.06%), Tech Mahindra (down 2.03%), Shriram Finance (down 1.77%), Bharti Airtel (down 1.76%) and Nestle India (down 1.73%) were the top losers.
Stocks in Spotlight:
Adani Energy Solutions rose 0.84%. The company said that it has secured a key transmission project for evacuation of renewable energy generated in Karnataka to major load centres in Maharashtra. The project, which entails an estimated capital expenditure of Rs 4,700 crore, will also support the growing pumped storage ecosystem in the Satara, Pune and Mumbai Metropolitan Region (MMR).
Dhoot Transmission jumped 4.79%. Crisil Ratings upgraded its rating on the long-term bank facilities of the company to 'Crisil AA/Stable? from 'Crisil AA-/Stable?. The agency has reaffirmed its 'Crisil A1+' rating on the short-term bank facility.
Fedbank Financial Services advanced 1.26%. The NBFC said that its board has approved an increase in aggregate borrowing limits of the company to Rs 23,000 crore from Rs 18,000 crore earlier. Further, the company's board has also approved a proposal for raising funds by issuing debt instruments, including non-convertible debentures, with an aggregate amount not exceeding Rs 2,500 crore.
Subex fell 1.51%. The company said that it has entered into a three-year engagement with a leading African mobile operator for the deployment of its HyperSense Fraud Management solutions.
Global Markets:
European equities pushed modestly higher on Wednesday, holding near one-week highs as a sharp slump in crude prices provided macro relief.
Meanwhile, in Asia, stocks traded in a mixed manner as investors remained cautious ahead of Nvidia's earnings and key US inflation data.
Investors remained focused on Nvidia's results, due after the US market close on Wednesday. The earnings are expected to provide fresh clues on the strength of the artificial intelligence investment cycle and the sustainability of elevated technology valuations.
Falling crude oil prices and lower US Treasury yields provided some support to risk assets. Brent crude fell to $86 a barrel mark as Iran and Oman discussed an interim framework aimed at resuming shipping through the Strait of Hormuz. Lower oil prices helped push the US 10-year Treasury yield down to around 4.63%.
Sentiment was also affected by weaker-than-expected US consumer confidence. The Conference Board's Consumer Confidence Index fell to 89.4 in August from a revised 90.2 in July, marking its lowest level in seven months. The decline was driven mainly by a sharp fall in the expectations index, reflecting increased concerns over business conditions and the labour market.
Trade tensions between the US and Canada also intensified. Canada announced targeted counter-tariffs on US goods, matching the corresponding US tariff rates on affected products. The measures, covering about $27.6 billion of US imports, will take effect on 8 September and include tariffs of 15%, 25% and 50%.
Wall Street ended higher on Tuesday. The Nasdaq Composite rose 0.66%, the S&P 500 gained 0.32% and the Dow Jones Industrial Average advanced 0.30%. Technology and semiconductor stocks rebounded ahead of Nvidia's results, with Nvidia rising 2.19% and AMD gaining 4.91%.
Investors are also awaiting the US July Personal Consumption Expenditures price index, due later on Wednesday. The data is closely watched by the Federal Reserve and could influence expectations for the interest-rate outlook.
Meanwhile, Federal Reserve Chair Kevin Warsh is scheduled to speak at the Jackson Hole Economic Policy Symposium on Friday, 28 August. His remarks will be closely watched for signals on the Fed's policy path.
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