Our Business Correspondent

Domestic equity benchmarks closed marginally lower on Friday after recovering from sharper early losses, as buying at lower levels helped cushion the decline. The market also drew some support from relatively positive global cues, a modest strengthening of the rupee against the US dollar and a decline in the India VIX, signalling some easing in near-term volatility.

The Nifty 50 recovered from an intraday low of 24,296.80 to settle at 24,366, down 29.85 points, or 0.12 per cent. The S&P BSE Sensex fell 70.71 points, or 0.09 per cent, to close at 78,009.25.

The session remained volatile, with investors balancing domestic inflation concerns against improving global risk sentiment. Buying interest was particularly visible in consumer durable stocks, while pharma, metal and cement shares remained under pressure.

Tata Motors Passenger Vehicles, State Bank of India and Reliance Industries emerged as the major drags on the Nifty. Tata Motors Passenger Vehicles fell 4.32 per cent, while SBI declined 1.41 per cent and Reliance Industries slipped 0.53 per cent.

The broader market also ended in negative territory. The BSE 150 MidCap Index declined 0.23 per cent, while the BSE 250 SmallCap Index dropped 0.43 per cent. Market breadth remained weak, with 1,958 shares advancing and 2,326 declining on the BSE, while 235 stocks ended unchanged.

Wholesale Inflation Remains High

Investor sentiment was also influenced by the latest wholesale inflation data. India’s Wholesale Price Index (WPI)-based inflation eased marginally to 9.78 per cent year-on-year in July 2026, from 9.87 per cent in June. The July figure was lower than the previous month’s reading, although wholesale price pressures remained elevated. Official data released by the Ministry of Commerce and Industry confirmed the July reading under the revised WPI series, which uses 2022-23 as the base year.

The moderation was largely driven by a cooling in fuel and energy-related price pressures. Fuel inflation declined to 20.05 per cent in July from 27.41 per cent in June. Within the segment, mineral oil inflation moderated sharply to 32.4 per cent from 46.48 per cent, while inflation in crude petroleum and natural gas eased to 26.99 per cent from 34.75 per cent.

However, the inflation picture remained mixed. Food inflation accelerated to 6.65 per cent in July from 6.14 per cent in June, highlighting continued pressure in food-related wholesale prices.

Non-food articles recorded a significant increase in inflation, rising to 17.66 per cent from 11.07 per cent. Manufacturing inflation also accelerated to 8.29 per cent from 7.48 per cent, marking a sharp increase in producer-level price pressures.

The manufacturing increase was led by tobacco products, chemicals and chemical products, basic metals, textiles and rubber and plastics. Inflation in tobacco products stood at 13.36 per cent, chemicals and chemical products at 13.12 per cent, basic metals at 12.56 per cent, textiles at 12.80 per cent and rubber and plastics at 10.38 per cent.

The revised WPI series, introduced in June 2026, replaced the earlier 2011-12 base year with 2022-23 and expanded the coverage and methodology of the index.

The latest figures indicate that although energy-related price pressures have moderated, inflation across several manufacturing and non-food categories remains significant.

Parliament’s Monsoon Session Ends Amid Disruptions

The conclusion of Parliament’s Monsoon Session also featured prominently in the domestic policy landscape. The session ended on August 13 after 19 sittings spread across 25 days.

Both Houses passed 12 Bills during the session, covering areas including public examinations, micro, small and medium enterprises, taxation, tribunals, banking records and mining. A proposal concerning the renaming of Kerala as Keralam was also among the legislative measures taken up.

The Foreign Contribution (Regulation) Amendment Bill was referred to a Joint Committee for further scrutiny.

The session was marked by repeated disruptions, which significantly affected legislative productivity. According to the figures cited, Lok Sabha recorded productivity of around 19 per cent, while Rajya Sabha recorded approximately 39 per cent.

For businesses and investors, the legislative developments remain important because reforms involving taxation, MSMEs, banking, mining and regulatory frameworks can have implications for investment, compliance and corporate activity.

Rupee Edges Higher; Bond Yields Rise

In the foreign exchange market, the rupee showed a marginal improvement against the US dollar. The partially convertible rupee was hovering around 95.4200 per dollar, compared with its previous close of 95.4550.

The modest recovery in the domestic currency provided some relief to investors, particularly against a backdrop of elevated global commodity prices and continuing geopolitical uncertainty.

In the debt market, the yield on India’s 10-year benchmark government security increased to 6.763 per cent from 6.758 per cent previously.

In commodities, Brent crude for October 2026 delivery rose 14 cents, or 0.16 per cent, to $87.21 a barrel. MCX gold futures for the October 5, 2026 settlement declined 0.10 per cent to Rs 1,53,313.

The US Dollar Index fell 0.24 per cent to 99.61, while the US 10-year Treasury yield declined 0.30 per cent to 4.655 per cent.

Asian Markets Gain; Europe Remains Under Pressure

Global market signals were mixed. Most Asian markets ended higher on Friday and were on track for their strongest weekly performance in two months, supported by benign US inflation data that reduced expectations of an imminent Federal Reserve rate hike.

However, lingering uncertainty over the Middle East continued to weigh on risk appetite. Stalled efforts to resolve the Iran conflict and concerns surrounding a prolonged naval blockade remained key risks for global investors.

Most European markets traded lower amid renewed US threats against Iran and concerns about weakening global demand.

The eurozone economy, meanwhile, expanded 0.4 per cent quarter-on-quarter in the second quarter, following a flat reading in the first quarter. On an annual basis, the eurozone economy grew 1 per cent in Q2, compared with 0.5 per cent in the previous quarter.

Global investors have so far largely looked beyond the lack of progress in resolving the Iran conflict, focusing instead on the artificial intelligence investment theme and expectations surrounding global monetary policy.

Wall Street Hits Fresh Record

US equities provided a positive backdrop for Asian markets after the S&P 500 closed at a fresh record high on Thursday.

The S&P 500 advanced 0.65 per cent to 7,798.99, surpassing its previous record closing level set the previous Friday. The Nasdaq Composite rose 0.81 per cent to 26,803.03, while the Dow Jones Industrial Average gained 0.13 per cent to 53,839.99.

Technology stocks remained a major source of strength. Memory-chip manufacturers Sandisk and Micron Technology jumped 13.7 per cent and 4.2 per cent, respectively. Microsoft gained nearly 1 per cent, while Meta Platforms advanced 2.8 per cent.

Positive earnings expectations from major technology companies, including Microsoft and Amazon, have helped reduce investor concerns over the scale of spending required for AI data centres.

Tata Motors PV Shares Under Pressure

Tata Motors Passenger Vehicles was among the biggest losers on the Nifty after the company reported a sharp decline in consolidated net profit for the first quarter of FY27.

The company’s consolidated net profit plunged 80.25 per cent year-on-year to Rs 775 crore in Q1 FY27, compared with Rs 3,924 crore in the corresponding quarter of FY26.

Despite the steep decline in profit, revenue from operations increased 9.26 per cent year-on-year to Rs 95,799 crore for the quarter ended June 30, 2026.

The weak earnings performance nevertheless triggered selling pressure in the stock, making Tata Motors PV one of the principal drags on the benchmark index.

Zee Entertainment Gains on SAT Relief

Zee Entertainment Enterprises advanced 5.43 per cent after reports indicated that the Securities Appellate Tribunal had granted interim relief to the company in its dispute with market regulator SEBI.

The relief reportedly allows the company to proceed with its proposed Rs 3,143 crore preferential warrant issue to its promoter group despite the market-access restriction imposed by SEBI.

The tribunal also reportedly permitted the company to use its mutual fund units for dividend distribution, subject to deposit of the penalty imposed by the regulator.

Shareholders of Zee Entertainment had approved the proposed fundraising on July 31, with 76.64 per cent voting in favour. The proposal involves issuing 24,94,85,563 fully convertible warrants at Rs 126 apiece and is expected to raise the promoter group’s shareholding to 23.79 per cent.

LG Electronics India Surges

LG Electronics India was another major outperformer, surging 10 per cent after reporting strong financial results for Q1 FY27.

Consolidated profit after tax increased 27.20 per cent year-on-year to Rs 652.90 crore. On a sequential basis, however, profit declined 5.75 per cent.

Revenue from operations rose 15.50 per cent year-on-year to Rs 7,233.40 crore, although it declined 10.18 per cent quarter-on-quarter. The company attributed the performance to strong premium demand across product categories.

Strong Earnings Lift Several Stocks

Galaxy Surfactants hit the upper circuit of 20 per cent after reporting a substantial improvement in quarterly earnings. Consolidated net profit rose 108.7 per cent year-on-year and 165.8 per cent quarter-on-quarter to Rs 165.9 crore in Q1 FY27.

Net revenue from operations increased 39.4 per cent year-on-year and 35.5 per cent sequentially to Rs 1,781.9 crore.

KMC Speciality Hospitals India climbed 7.01 per cent after reporting a 119.9 per cent year-on-year increase in net profit to Rs 16.57 crore. Net sales increased 37.91 per cent to Rs 91.78 crore.

Honasa Consumer gained 4.70 per cent after consolidated profit after tax jumped 116.5 per cent year-on-year and 30.3 per cent quarter-on-quarter to Rs 90 crore. Revenue from operations increased 27 per cent year-on-year and 15 per cent sequentially to Rs 756 crore.

Praj Industries advanced 4.18 per cent after consolidated net profit surged 117.64 per cent to Rs 11.60 crore from Rs 5.33 crore a year earlier. Revenue increased 11.81 per cent to Rs 715.82 crore.

Jubilant FoodWorks added 2.55 per cent after reporting a 6 per cent year-on-year and 21.4 per cent quarter-on-quarter rise in consolidated profit after tax to Rs 100 crore. Revenue from operations grew 14.1 per cent year-on-year to Rs 2,569.7 crore.

IPO Market Records Strong Demand

The primary market continued to attract strong investor interest, with the Shiprocket and Behari Lal Engineering IPOs witnessing exceptionally high subscription levels on their final day.

Shiprocket received bids for more than 935 crore shares against an offer of about 9.44 crore shares, translating into subscription of roughly 99 times based on stock-exchange data. The IPO opened on August 12 and closed on August 14, with a price band of Rs 92-97 per share and a minimum bid of 154 shares. Final reported subscription figures were around 99.3 times.

Behari Lal Engineering also attracted substantial demand, with the issue subscribed more than 100 times by the close. The IPO had a price band of Rs 271-285 per share and a minimum lot size of 52 shares. Reports put the final subscription at around 108 times.

The strong response to the two offerings highlights continued investor appetite for new listings despite the mixed performance of the secondary equity market.

Market Outlook

Friday’s session reflected a market caught between domestic inflationary pressures and improving global risk sentiment. While elevated wholesale inflation, weakness in selected heavyweight stocks and geopolitical uncertainties remained concerns, lower-level buying and expectations of relatively supportive global monetary conditions helped prevent a deeper correction.

The modest recovery in the rupee, declining India VIX and strength in consumer-facing and select earnings-driven stocks provided some support.

Going forward, investors are likely to track inflation trends, crude oil movements, currency stability, global central-bank signals and developments in the Middle East. Corporate earnings and the continued flow of capital into India’s primary market will also remain important drivers of sentiment.

For now, the market’s ability to hold above the day’s low despite early selling suggests that investors remain willing to accumulate quality stocks on declines, even as elevated valuations and persistent macroeconomic risks call for continued caution.

Disclaimer; This article is a journalistic rehash prepared for business reporting purposes. It is not investment advice. Readers are advised to consult certified financial professionals before making investment decisions.