Sensex, Nifty snap 4-day gaining streak as bank, pharma stocks drag

Sensex, Nifty snap 4-day gaining streak as bears take control

Benchmark indices Nifty and Sensex kickstart the session on a slightly muted note on August 20 as profit-booking at higher levels led to a snap in the market’s four-day winning streak. Bank and pharma stocks were the top drags while the broader market also edged lower.

At about 9:40 am, the Sensex was down 52.07 points or 0.06 percent at 81,592.32, and the Nifty was down 25.80 points or 0.10 percent at 24,954.85. About 1536 shares advanced, 1462 shares declined, and 148 shares were unchanged.

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"A sustained rally looks unlikely with the August 27 deadline for the 25 percent secondary tariff on India nearing, and signals from the Trump administration turning increasingly negative. President Trump’s tariff stance, seen as arbitrary and unpredictable, could persist, weighing on India in the near term and forcing the market to factor in its impact," V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, said.

Experts say FII selling is also a worry for markets. To be sure, Foreign investors (FIIs/FPIs) turned net sellers again on Tuesday, after a day of buying, offloading Indian equities worth Rs 634 crore. Domestic institutional investors (DIIs), meanwhile, sustained their support with net purchases of Rs 2,261 crore, according to provisional exchange data.

At the opening bell, sectoral trends were mixed. Nifty Auto, IT and Consumer Durables were largely flat, while FMCG, Pharma, Metal, PSU Bank, Private Bank and Oil & Gas saw mild declines. Banking stocks were under pressure, dragging Nifty Bank down 0.4 percent. On the positive side, Energy, Infra and Realty indices inched higher, even as Media slipped nearly 1 percent. Volatility also edged up, with India VIX rising 0.9 percent.

Among individual stocks, state-run defence equipment manufacturer Hindustan Aeronautics Ltd. (HAL) rose 3 percent after CNBC TV-18 reported that the company is likely to receive a big purchase order. The Cabinet Committee on Security (CCS) has cleared the purchase of 97 Light Combat Aircraft (LCA) Mark1A fighter jets worth Rs 62,000 crore from HAL. An official confirmation would mean one of the largest purchase orders for the state-run enterprise, where the fighter jets would be indigenously developed.

Shares of online gaming companies, including Delta Corp, Nazara Technologies and OnMobile Global, tumbled up to 6 percent after the Union Cabinet approved a Bill to regulate the sector. The proposed law prohibits online money gaming and related advertisements, prescribing fines and imprisonment for violators.

Phoenix Mills shares jumped 4 percent after the company said the Competition Commission of India cleared its plan to buy out Canada Pension Plan Investment Board’s 49 percent stake in Island Star Mall Development for Rs 5,449.16 crore, giving PML full ownership and sole control of the subsidiary.

Technical View

Nifty continues to demonstrate strength while holding above its gap support near 24,800. A sustained breakout above 25,050 could unleash strong bullish momentum, as significant call writers risk being trapped, leading to potential short covering. On the downside, any dip towards the 24,750 zone is likely to be absorbed as an accumulation opportunity. Robust positioning by Put writers at near-the-money strikes further reinforces this constructive view. Only a decisive breach below 24,700 would warrant caution; until then, the bulls are expected to maintain control. For now, a “buy on dips” strategy remains the most prudent approach, with traders closely watching for a decisive breakout to resolve the current consolidation phase.

Bharti Airtel, NTPC, Infosys, Eternal, and Hindustan Unilever were the top gainers on the Nifty. Shriram Finance, Bajaj Finance, Jio Financial Services, Hindalco, and Tata Motors were the major laggards.

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