Sensex, Nifty snap six-week losing streak after flat Thursday close

Sensex and Nifty ended flat on Thursday but broke a six-week losing run, supported by gains in banking and IT stocks, as FPIs covered shorts ahead of the US-Russia summit

Domestic equity benchmarks ended Thursday’s session largely flat but managed to snap their longest losing weekly streak since the pandemic began. Gains in banking and technology heavyweights supported the recovery. 

The BSE Sensex closed at 80,598, up 58 points or 0.07 per cent. Meanwhile, the Nifty 50 ended at 24,631, gaining 12 points or 0.05 per cent. For the week, Sensex advanced 0.9 per cent, and Nifty rose 1.1 per cent. 

The recovery was partly driven by short covering from foreign portfolio investors, whose bearish bets had reached multi-year highs last week. 

Despite these gains, investors remain cautious ahead of the crucial Russia–US presidential meeting scheduled for August 15 in Alaska to negotiate an end to the Ukraine war. A breakthrough could lead to the removal of secondary tariffs recently imposed by the US on Indian goods, which were levied due to India’s oil imports from Russia. 

 

“After a volatile weekly expiry-day session, Indian equities ended flat, with investors trading cautiously ahead of the US-Russia summit. IT and pharmaceutical stocks climbed on softer US inflation data and a dovish outlook. Banking and consumer durables gained on hopes of a consumption-led recovery, while metals and energy sectors weakened due to falling commodity prices and oversupply concerns. In the near term, the market is expected to trade in a tight range with a mixed bias, awaiting geopolitical developments,” said Vinod Nair, head of research at Geojit Investments. 

Market breadth was weak, with 2,414 stocks declining and 1,659 advancing. HDFC Bank, up 0.6 per cent, was the biggest contributor to Sensex gains, followed by Infosys, which rose 1.5 per cent. 

“The prevailing consolidation suggests markets have largely absorbed recent negatives and are awaiting triggers for recovery. Oversold heavyweights across sectors support this possibility. 

A decisive Nifty break above 24,800 could spark fresh momentum; otherwise, consolidation will persist. Investors should maintain stock-specific trading with a focus on risk management,” added Ajit Mishra, SVP, Research, Religare Broking.