The Nifty Midcap 100 bucked the trend, gaining 0.28 per cent and touching a fresh all-time high, while the Nifty Smallcap 100 declined 0.18 per cent
Markets closed lower on Wednesday, caught between rising crude oil prices, the shock resignation of Tata Sons Chairman N Chandrasekaran, and investor caution ahead of closely watched inflation data from India and the United States.The Nifty 50 settled at 24,435.95, down 35.75 points or 0.15 per cent, after briefly slipping to an intraday low of 24,265 before recovering in the final hour. The Sensex closed at 77,966.35, lower by 0.24 per cent. The Nifty Midcap 100 bucked the trend, gaining 0.28 per cent and touching a fresh all-time high, while the Nifty Smallcap 100 declined 0.18 per cent.Sentiment was weak despite Asian stocks gained, led by Korea’s Kospi that surged nearly 4 per cent.“Leadership spooked the market before earnings did,” said Sarvam Goel, Founder of Pocketful, pointing to the broad sell-off across Tata Group stocks following N Chandrasekaran’s decision to step down as chairman of Tata Sons after his current tenure ends in February 2027. TCS fell around 4 per cent, while Tata Motors and Tata Consumer Products declined roughly 2.5 per cent and 1.5 per cent, respectively.Brent crude hovered near the $89-90 per barrel mark, its highest in roughly a week, as stalled US-Iran negotiations and fresh attacks on shipping through the Strait of Hormuz kept energy markets on edge. The rupee weakened 9 paise to close near 95.30 against the dollar, pressured by a stronger greenback and elevated commodity prices.Inflation risesIndia’s retail inflation edged up to 4.45 per cent in July 2026 from 4.38 per cent in June, driven primarily by food prices and a sharp surge in the “other personal effects” category, largely precious metals, which rose 43.54 per cent. Food inflation accelerated to 5.52 per cent. The print keeps the RBI’s projected inflation path on track, narrowing the window for any dovish policy surprise.On the sectoral front, PSU Banks were the standout performers, with the Nifty PSU Bank index gaining 1.8 per cent, supported by strong asset quality, improving credit growth and lower provisions. Media and Metals also outperformed. On the other side, Nifty IT gave back three sessions of gains, falling 1.9 per cent, while FMCG extended its losing streak into a third consecutive session. Auto also remained weak. Ankur Punj, MD & Business Head at Equirus Wealth, saidgains in banking and telecom shares helped benchmark indices close off their intra-day lows, although markets continued their downward trend with heavy selling in IT stocks keeping the mood sluggish. Market is moving in a particular range as investors hold on to their next big bets while the deadlock over the Strait of Hormuz and volatile oil prices persist.At the stock level, Godrej Consumer Products fell 11 per cent after CEO Sudhir Sitapati resigned, while PI Industries dropped 5.31 per cent after quarterly profit fell 39 per cent year-on-year. On the positive side, Marksans Pharma surged after net profit rose 2.5 times, and Nalco gained on rising aluminium prices.Foreign Institutional Investors remained net buyers for a third straight session, providing some support to the market.Gold on COMEX hovered around $4,415 per ounce, with MCX Gold expected to trade in the ₹1,54,000–1,56,500 range, according to Jateen Trivedi of LKP Securities, who noted that the US CPI print would be the decisive trigger for bullion’s next move.Looking ahead, US CPI data with a softer reading likely to support equities and gold, while a hotter print could strengthen the dollar and revive rate hike bets. Thursday’s agenda includes UK GDP, US PPI, US jobs data, and earnings from Solar Industries, Tata Motors, LG Electronics India, Max Healthcare and Ipca Laboratories.Published on August 12, 2026
