Indices off day’s lows in early noon deals

Indian equity benchmarks came off their intraday lows in early afternoon deals, amid positive cues from other Asian markets along with buying at Telecom and TECK counters. Traders got comfort, after India's wholesale price index (WPI) inflation showed a mild cooling in July 2026, with inflation easing to 9.78 per cent from 9.87 per cent in June 2026. Fuel and Power provided some relief, with inflation declining substantially to 20.05 per cent in July from 27.41 per cent in June.

Both benchmarks, Sensex and Nifty, witnessed some recovery but remained weak, with Sensex seeing somewhat sharper losses than Nifty, as rising crude prices and West Asia tensions continued to dominate market sentiment. Foreign investor outflows and cautious sentiment were also weighing on equities.

On the global front, Asian markets were trading mostly in green, after export prices were up 1.0 percent on month in July, after easing 0.1 percent in June. On a yearly basis, export prices surged 49.1 percent, up from 48.7 percent in the previous month.

The BSE Sensex is currently trading at 77817.95, down by 262.01 points or 0.34% after trading in a range of 77684.37 and 77923.58. There were 4 stocks advancing against 26 stocks declining on the index.

The top gaining sectoral indices on the BSE were Telecom up by 1.07%, TECK up by 0.59%, Consumer Durables up by 0.14% and Capital Goods up by 0.02%, while PSU down by 0.84%, Metal down by 0.68%, Energy down by 0.57%, Oil & Gas down by 0.55% and Basic Materials down by 0.52% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.91%, Adani Ports & SEZ up by 1.23%, Titan Company up by 0.50% and Eternal up by 0.22%. On the flip side, Asian Paints down by 2.16%, NTPC down by 1.94%, Tech Mahindra down by 1.67%, Tata Steel down by 1.22% and Sun Pharma down by 1.13% were the top losers.

Meanwhile, the rating agency ICRA has said that its sample set of 838 listed companies have reported aggregate revenue growth of 22% in the June quarter, which higher than 13% year-on-year (Y-o-Y) growth recorded in the March quarter, reflecting earnings resilience of India Inc offsetting weakness in the oil sector. This was driven by commodity and bullion price-led value inflation, the enduring demand lift from the Goods and Services Tax (GST) rate cuts last year that continued to spur the automobile sector, and resilient overall consumption volumes, notwithstanding the West Asia flare-up and El Nino worries. ICRA’s sample set excludes financial sector entities and those with annual revenues of less than Rs 50 crore.

In spite of this, aggregate Operating Profit Margin (OPM) of these companies contracted by over 200 basis points (bps) in Y-o-Y in the first quarter of 2026-27, while net profit numbers came in flattish mainly due to the oil-refining sector, where elevated crude prices and under-recoveries on LPG and petroleum products weighed on profitability. Meanwhile, it pointed that excluding oil & gas, OPM was stable at 19% and net profits grew by over 20% YoY. On sectoral side, IT services reported muted constant-currency growth, while revenue growth lagged in domestic cyclicals such as cement and sugar, and export-focused companies in sectors like textiles and auto components.

ICRA noted that despite concerns over a demand-and-cost shock weighing on sentiments at the beginning of the quarter, the eventual impact was limited, while the consumption-led sectors being the key growth drivers. It added that automobile Original Equipment Manufacturers (OEMs) recorded the strongest revenue growth, along with several other consumer-oriented sectors including FMCG, consumer durables, apparel and grocery retail, jewellery retail and quick-service restaurants. 

Moreover, it highlighted that renewed geopolitical tensions in West Asia, the consequent volatility in crude oil and commodity prices, and an uncertain global trade environment will remain key monitorables in coming times. However, healthy balance sheets and comfortable credit metrics of Indian corporates provide a meaningful cushion against potential earnings volatility and near-term external shocks.

The CNX Nifty is currently trading at 24335.85, down by 60.00 points or 0.25% after trading in a range of 24296.80 and 24365.00. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Apollo Hospital up by 2.79%, Bharti Airtel up by 2.79%, Adani Ports & SEZ up by 1.63%, Adani Enterprises up by 1.55% and Wipro up by 0.83%. On the flip side, Tata Motors Passenger down by 4.85%, Asian Paints down by 2.16%, JIO Financial Serv. down by 1.88%, NTPC down by 1.82% and ONGC down by 1.64% were the top losers.

Asian markets were trading mostly in green; Jakarta Composite gained 42.7 points or 0.68% to 6,344.47, KOSPI increased 164.60 points or 2.36% to 6,977.94, Nikkei 225 surged 514.41 points or 0.75% to 68,823.00, Straits Times rose 7.42 points or 0.13% to 5,727.47 and Shanghai Composite strengthened 0.22 points or 0.01% to 3,927.18, while Taiwan Weighted lost 210.47 points or 0.46% to 45,811.01 and Hang Seng declined 277.51 points or 1.09% to 25,119.00.