SENSEX, NIFTY50 snap two-day winning run on weak global cues ahead of details of Iran sanctions

The Indian equity benchmarks snapped their two-day winning streak on Monday, August 24, a day ahead of monthly expiry of NIFTY50 and stock futures and option contracts as investor sentiment remained cautious ahead of the Treasury Secretary Scott Bessent's press conference due later in the day to explain new US sanctions against Iran.

The benchmarks erased intraday gains and SENSEX fell as much as 588 points from the day's highest level and NIFTY50 index touched an intraday low of 24,144 after hitting an intraday high of 24,313 in morning deals.

The SENSEX ended 172 points lower at 77,369 and NIFTY50 index dropped 33 points to close at 24,219.

Following these reports, stock markets in Asia closed sharply lower. Japan's Nikkei fell 0.7%, China's Shanghai Composite index declined 0.6%, Hong Kong's Hang Seng index plunged 1.9% and South Korea's KOSPI index tumbled 3.12%

Back home, Reliance Industries, Bajaj Finance, ICICI Bank, State Bank of India, Axis Bank, Bharat Electronics and Adani Ports were top drags on the SENSEX.

Ten of 15 major sector gauged compiled by the National Stock Exchange (NSE) ended lower led by the NIFTY PSU Bank index's nearly 1% fall. NIFTY Consumer Durables, Bank, Financial Services, Private Bank and Media indices also fell between 0.3% and 0.6%.

On the other hand, metal, realty, select FMCG, IT and oil & gas shares witnessed buying interest.

Broader markets ended mixed as NIFTY Midcap 100 index advanced 0.13% and NIFTY Smallcap 100 index fell 0.26%.

Rice stocks like LT Foods, KRBL, Chaman Lal Setia Exports, among others rallied during the session as investors focused on the surging global prices for the commodity amid high demand, elevated costs and rising climate risk in the market.

Rice prices in the global market surged 4% in a single day last week on Friday, while domestic prices were trading around ₹4,111 per quintal on August 24.

Ratnamani Metals & Tubes shares soared 18% to touch an intraday high of ₹2,777 after the company bagged export orders.

Worth $286 million (approximately ₹2,700 crore), the company, in a regulatory filing, said that its subsidiary Ratnamani Finow Spooling Solutions Private Limited has received export orders for the supply of spools and hangers.

“It may be noted that the orders would be partly manufactured in its plant and would partly be sub-contracted and sold on Mercantile Trade Transaction basis,” Ratnamani Metals said in a regulatory filing.

BLS International shares fell as much as 13.94% to hit an intraday low of ₹233.47 following a Spanish news outlet report that alleged the company has been drawn into the Spanish National Court investigation into a visa fraud network at Spain’s consulate in Algiers.

SBI Life was top loser in the NIFTY50 index, the stock fell 1.73% to close at ₹1,761.80. Bajaj Finance, Adani Ports, Bajaj Finserv, Bharat Electronics, Tata Motors PV, Shriram Finance, Max Healthcare, State Bank of India and Jio Financial Services also fell between 0.8% and 1.6%.

On the flip side, Bajaj Auto, Maruti Suzuki, Eicher Motors, JSW Steel, Hindalco, HCL Tech, Dr Reddy's Labs, Hindustan Unilever and Tata Consumer products were top gainers in the NIFTY50 index.

The overall market breadth was marginally negative as 1,820 shares ended lower while 1,740 closed higher on the NSE.