SENSEX, NIFTY50 resume decline after a day's pause, dragged by HDFC Bank, Bharti Airtel

The Indian equity benchmarks resumed their downward journey after a day's pause in the previous session on Monday, August 31, as investor sentiment turned cautious tracking a surge in crude prices after United States attacked an Iranian island in the Strait of Hormuz.

The SENSEX fell as much as 513 points and NIFTY50 index touched an intraday low of 23,993 dragged down by losses in index heavyweights like HDFC Bank, Bharti Airtel, ITC, Infosys, Adani Ports and Kotak Mahindra Bank.

The SENSEX ended 307 points or 0.4% lower at 76,957 and NIFTY50 index declined 95 points or 0.4% to close at 24,080.

Brent crude futures rose as much as 6.2% to hit an intraday high of $91.45 per barrel after the US attacked an Iranian island in the Strait of Hormuz and Tehran said it had retaliated, as their conflict extended into its sixth month.

Back home, seven of 15 major sector gauges compiled by the National Stock Exchange ended lower led by the NIFTY Media index's nearly 3% fall. NIFTY Metal, FMCG, Realty, Consumer Durables and IT indices also fell between 0.3% and 2.45%.

On the other hand, NIFTY Bank, Pharma, Private Bank and Healthcare indices surged between 0.7% and 1%.

Broader markets ended mixed as NIFTY Midcap 100 index advanced 0.24% while NIFTY Smallcap 100 index dropped 0.74%.

Among the individual shares, Transformers and Rectifiers jumped as much as 7.% after the company marked a strategic entry into India’s nuclear power sector with a landmark NPCIL order for transformers and reactors.

Transformers and reactors are essential electrical devices used in power systems to manage alternating current (AC) electricity, though they serve opposite primary functions.

Metal sector stocks like Adani Enterprises, Hindustan Zinc, and National Aluminium, among others came under selling pressure as investors booked profits on decline in commodity prices after strong monthly gains amid elevated uncertainties in West Asia.

Shares of packaged-food companies such as Nestlé India, Britannia Industries, ITC, Tata Consumer Products and Varun Beverages, among others, ended lower following a proposal by the Food Safety and Standards Authority of India (FSSAI).

Adani Enterprises was top loser in the NIFTY50 index, the stock dropped 10% to close at ₹2,859 mirroring losses in other Adani Group shares amid heightened volatility owing to MSCI index reshuffling.

Adani Ports, ITC, Bharti Airtel, Tata Motors PV, Hindustan Unilever, Bajaj Finance, Hindalco and JSW Steel also fell between 2% and 6.7%.

Sun Pharma, Nestle India, Axis Bank, Max Healthcare, Grasim, Tata Consultancy Services, ICICI Bank, Shriram Finance and Wipro were top gainers in the NIFTY50 index.

The overall market breadth was positive as 2,204 shares ended lower while 1,340 closed higher on the NSE.