The Indian stock market struggled on August 7, with the Nifty 50 down 0.32% and the Sensex declining 0.59%. Concerns over a potential peace deal in the Middle East and financial sector weaknesses led to mixed performance among broader markets and sector indices.
It was another lacklustre session for the Indian stock market on Friday, August 7, as a rebound in crude oil prices amid renewed uncertainty over the Strait of Hormuz raised fresh doubts about a potential peace deal in the Middle East. Weakness in financial stocks outweighed gains in auto and technology shares, keeping the benchmark indices under pressure.
The Nifty 50 fell 0.32% to close at 24,557, while the Sensex declined 0.59% to settle at 78,491. The broader markets ended on a mixed note, with the Nifty Midcap 100 rising 0.22%, while the Nifty Smallcap 100 slipped 0.06%.
Among the sectoral indices, Nifty Financial Services, Consumer Durables, Chemicals, and Realty witnessed heavy selling, while auto, IT, and metal stocks ended in the green.
The weakness in financial heavyweights followed the Reserve Bank of India’s (RBI) draft proposal, which raised concerns over potential restrictions on certain revolving credit products offered by non-bank lenders.
“Financial stocks came under pressure following the RBI’s draft proposal on revolving credit products for NBFCs, while stock-specific action dominated amid the ongoing Q1 earnings season. Profit booking after the recent rally further capped gains, resulting in a range-bound trading session despite selective buying in fundamentally strong stocks,” said domestic brokerage firm Lemonn.
In the Middle East, uncertainty persisted over the full restoration of shipping through the Strait of Hormuz, even as Iran and Oman moved closer to an agreement on managing traffic through the strategic waterway.
Under the proposed Iran-Oman agreement, Tehran is reportedly seeking to prohibit US and Israeli vessels from transiting the Strait of Hormuz and require countries it considers hostile to pay compensation before being granted passage.
Meanwhile, Brent crude futures for October delivery rose 1.3% to $83.55 a barrel, while WTI crude futures for September gained 1.1% to $78.17.
Q1 disappointments, profit booking drag key stocks lower
Jyoti CNC Automation topped the losers’ list, tumbling 10% to ₹784 after investors reacted negatively to the company’s June-quarter earnings. EIH also came under pressure, slipping 7.4% to ₹306.6 following its Q1 results.
Among financial stocks, Bajaj Finance and Bajaj Finserv declined 5.8% and 3.7%, respectively. Firstsource Solutions extended its post-earnings losses into a second straight session, falling another 4.8% and taking its weekly decline to over 7%.
Sonata Software also remained under selling pressure, extending its losing streak to a third consecutive session with a 4% decline to ₹318. Meanwhile, Capri Global Capital and Navin Fluorine International witnessed profit booking, falling 4.5% and 4.4%, respectively.
Among Tata Group stocks, Trent and Tata Capital declined more than 3% each. Other notable losers included Swiggy, L&T Finance, Affle 3i, Godrej Consumer Products, and ICICI Bank, all of which ended the session down more than 2.5%.
Siemens Energy shines; Tata Group, QSR stocks attract buyers
Siemens Energy India topped the gainers’ list, surging 12.2% to ₹3,648 after the company’s better-than-expected June-quarter performance impressed investors.
Tata Technologies extended its winning streak, rallying another 9% after gaining 6% in the previous session. The stock climbed to ₹872, its highest level since January 2025.
Among Tata Group stocks, Tata Investment Corporation also witnessed renewed buying interest, rising 4% to ₹693.
Quick-service restaurant (QSR) stocks were also in demand, with Sapphire Foods India and Devyani International jumping 12.3% and 8.8%, respectively.
Other notable gainers included TCS, Exide Industries, Grasim Industries, Hindalco Industries, Hero MotoCorp, Apar Industries, Welspun Living, and Meesho, all of which ended the session with gains of more than 3%.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
Â
