Sensex Sheds 490 Points, Nifty Falls 0.8% As Markets Snap Two-week Winning Streak

Indian benchmark indices ended the week lower, snapping a two-week winning streak as profit booking at higher levels and elevated crude oil prices weighed on investor sentiment despite continued buying by foreign and domestic institutional investors.

The BSE Sensex shed 489.92 points, or 0.62%, during the week to close at 78,009.25, while the Nifty 50 declined 204.65 points, or 0.83%, to settle at 24,366.

Ravi Singh, Chief Research Officer at Master Capital Services, said the benchmarks remained under pressure in the absence of major domestic or global triggers. He noted that the Q1 FY27 earnings season ended on an encouraging note, with better-than-expected corporate performance supporting sentiment and attracting renewed foreign investor interest.

Midcaps Outperform Smallcaps

The broader market remained mixed. The Nifty Midcap 100 gained 0.24% during the week, supported by One 97 Communications (Paytm), Vodafone Idea, MCX, Info Edge India, Hitachi Energy India and LG Electronics India.

PI Industries, Bharat Forge, Page Industries, Godfrey Phillips India, HUDCO, Lupin and GMR Airports were among the major midcap losers.

The Nifty Smallcap 100, meanwhile, declined 0.53%, dragged by PhysicsWallah, KEC International, Aegis Logistics, Triveni Turbine, HBL Engineering and NBCC (India). Gland Pharma, BLS International Services, Pine Labs, Sarda Energy & Minerals, Devyani International, Aarti Industries and Sai Life Sciences were among the major gainers.

Sectorally, Nifty Media emerged as the top performer, rising 2.2%, followed by Capital Markets at 1.6%, Consumer Durables at 1.3%, Realty at 1% and Defence at 0.8%.

On the downside, Nifty Metal declined 1.9%, followed by FMCG at 1.6%, Auto at 1.5%, Healthcare at 1.2% and Oil & Gas at 1%.

FIIs Continue Buying For Third Week

Foreign institutional investors extended their buying streak for the third consecutive week, purchasing equities worth ₹1,228.24 crore. Domestic institutional investors remained strong supporters of the market, investing ₹9,285.63 crore during the week.

The total market capitalisation of BSE-listed companies declined by more than ₹1 lakh crore, with TCS emerging as the biggest drag on market value, followed by Reliance Industries, State Bank of India and ITC. Bharti Airtel, Titan Company and Bharat Electronics were among the biggest wealth creators.

Singh said crude oil remained a key concern amid the ongoing West Asia conflict, given India's dependence on imports for its crude requirements. He added that softer US inflation helped reduce expectations of a September rate hike and pushed the US 10-year bond yield below 4.70%.

Nifty, Bank Nifty Technical Outlook

On the technical front, Nifty is hovering around its 21-day EMA, indicating near-term weakness, while the 55-day EMA around 24,150-24,180 remains a crucial support zone.

As long as this level holds, the broader strategy remains buy on dips. On the upside, 24,550 is the immediate hurdle, followed by the 24,800 zone. The medium-term trend remains cautiously positive.

Bank Nifty declined 0.44% during the week and continued to trade within a narrow consolidation range. The 57,000-57,100 zone, around its 55-day EMA, remains a key support area.

A sustained move above 58,000 could trigger momentum towards 58,500, while a break below 57,000 could weaken the setup and take the index towards 56,300.

The Indian rupee also snapped its two-week gaining streak, ending 22 paise lower at ₹95.43 against the US dollar on August 14, compared with ₹95.21 on August 7.

The currency traded in a relatively narrow ₹95.17-₹95.44 range during the week, with elevated crude prices and geopolitical uncertainty weighing on the domestic currency.