NEW DELHI, India — Indian equity markets ended the week on a positive note on August 7, extending their gains for a second straight week. The Nifty 50 advanced 187.05 points, or 0.8%, while the BSE Sensex gained 404.53 points, or 0.5%, with PSU banks, metals and select auto stocks leading the broader market higher.
Key Highlights
- Nifty 50 gained 0.8%, while Sensex advanced 404.53 points during the week.
- Hindalco Industries, Grasim Industries and State Bank of India were among the leading Nifty 50 gainers.
- Nifty Smallcap 100 outperformed with a 2.7% weekly rise, while Midcap 100 gained 0.9%.
- PSU Bank was the strongest sectoral performer, rising 5%, while Media declined 3.9%.
Sensex, Nifty Extend Winning Run
The domestic benchmark indices remained in positive territory for the second consecutive week. The Nifty 50 ended the week 187.05 points higher, representing a gain of 0.8%, while the Sensex rose 404.53 points, or 0.5%.
Market sentiment received support from gains in PSU banks following the Reserve Bank of India’s monetary policy decision, while developments around geopolitical tensions also influenced investor sentiment during the week.
RBI Keeps Repo Rate Unchanged at 5.25%
The Reserve Bank of India’s Monetary Policy Committee, headed by Governor Sanjay Malhotra, unanimously decided on August 5 to maintain the repo rate at 5.25% and retain its neutral policy stance.
The decision came amid uncertainties surrounding the southwest monsoon and the possible impact of El Niño conditions.
The RBI also lowered its inflation projection for the current financial year by 10 basis points to 5%. Its inflation estimates stood at 4.7% for the second quarter, 5.9% for the third quarter and 5.5% for the fourth quarter of FY27.
Hindalco, SBI Lead Nifty 50 Gainers
Hindalco Industries emerged as the biggest Nifty 50 gainer during the week, with its shares rising 8.7%. Grasim Industries gained 7.2%, while State Bank of India advanced 6.8%.
Shriram Finance rose 6.5% and Eternal gained 4.1% over the same period.
Hindalco’s weekly performance came after strong financial numbers from its wholly owned subsidiary Novelis. Novelis reported a 23% year-on-year increase in net sales to $5.8 billion during the first quarter of FY27.
Hindalco also reported its April-June quarter results on Friday. Its consolidated net profit increased 75% year-on-year to ₹7,013 crore, compared with ₹4,004 crore in the corresponding period of the previous year.
SBI Reports Stronger Profit and Asset Quality
State Bank of India was another major contributor to the Nifty’s weekly gains. The country’s largest bank reported a net profit of ₹21,121 crore for the first quarter of FY27, up 10% from ₹19,160 crore a year earlier.
The bank also reported an improvement in asset quality, with its non-performing asset ratios reaching their lowest level in more than two decades during the quarter.
Which Nifty 50 Stocks Lost Ground?
Not all large-cap stocks participated in the rally. Bajaj Finance was the biggest Nifty 50 decliner, falling 5.5% during the week.
Power Grid Corporation declined 4.5%, while Max Healthcare Institute fell 2.6%. HDFC Bank and Sun Pharmaceutical both recorded weekly declines of 2.3%.
Broader Market Outperforms Large-Cap Benchmarks
The broader market remained stronger than the headline indices. The Nifty Midcap 100 gained 0.9% during the week, while the Nifty Smallcap 100 delivered a sharper 2.7% rise.
Among midcaps, KEI Industries gained 12%, followed by Jubilant Foodworks at 11%. Exide Industries rose 8.9%, National Aluminium Company gained 8.8% and APL Apollo Tubes advanced 8.3%.
KEI Industries Profit Rises 40%
KEI Industries reported a 40.05% year-on-year increase in consolidated net profit for the first quarter of FY27. Profit rose to ₹274.14 crore from ₹195.75 crore in the same quarter a year earlier.
The improvement was supported by margin expansion, according to the supplied financial results.
At the other end of the Midcap 100, Blue Star fell 9.9%. BSE Limited and UPL Limited each declined 5.2%, while Container Corporation of India fell 3.9% and LIC Housing Finance dropped 3.6%.
Smallcap Stocks See Sharp Moves
The Nifty Smallcap 100 delivered the strongest performance among the three broad market indices, gaining 2.7% during the week.
Neuland Laboratories topped the smallcap gainers with a 20% rise. Devyani International gained 18%, Ather Energy advanced 17.6%, Tata Technologies climbed 16.7% and Welspun Corporation rose 11.5%.
Neuland Laboratories reached a record high of ₹22,188 per share on August 6 after reporting a sharp improvement in its June-quarter performance.
The company’s net profit jumped 962% year-on-year to ₹148 crore in Q1 FY27 from ₹14 crore in the same quarter of the previous year. Revenue from operations more than doubled to ₹642 crore from ₹293 crore.
Ather Energy also recorded gains during the week as investors focused on the electric two-wheeler maker’s reduction in net losses during Q1 FY27 alongside strong revenue growth.
Smallcap Losers
Nuvama Wealth Management was the biggest decliner in the Nifty Smallcap 100, falling 8.9%. Firstsource Solutions declined 7.4%, while Narayana Hrudayalaya fell 7.1%.
Inventurus Knowledge Solutions lost 6%, while Star Health and Allied Insurance Company declined 5.2% during the week.
PSU Banks, Defence and Metals Lead Sectoral Rally
PSU banks were the strongest-performing sector during the week. The Nifty PSU Bank index gained 5%, making it the biggest sectoral contributor to the market’s advance.
The Nifty India Defence index followed with a 4.3% rise. The Nifty Metal index climbed 3.7%, while the Nifty Auto index gained 3.1%.
The Nifty IT index also ended the week higher, rising 2.7%.
However, several sectors remained under pressure. The Nifty Media index fell 3.9%, making it the worst-performing sectoral index. Nifty Realty declined 1.7%, while Nifty Private Bank slipped 0.5%.
Crude Oil Prices Fall Amid Geopolitical Developments
Global crude oil prices declined during the week following reports that US President Donald Trump had cancelled military strikes on Iran.
On August 6, Iran said it was in the “final stage” of drafting an agreement with Oman concerning the Strait of Hormuz. Trump also said a deal could be announced during the week.
According to the supplied Associated Press report, a potential reopening of the critical waterway could reduce pressure on the global economy and contribute to efforts to end the war.
Brent crude declined 7.29% during the week ended August 7, settling at $82.21 per barrel. Despite the weekly fall, the benchmark remained nearly 13% higher over the previous month.
Market Volatility Remains a Concern
Market movements were also influenced by the implementation of a new Closing Auction Session mechanism. The change in the closing price mechanism resulted in differences in individual stock gains and losses, although prices on the NSE and BSE remained broadly similar.
India VIX, a measure of expected market volatility, rose 3.4% during the week. The increase reflected lingering geopolitical concerns and cautious investor sentiment.
What Happened to the Broader Market?
| Index | Weekly Performance |
|---|---|
| Nifty 50 | +0.8% |
| BSE Sensex | +0.5% |
| Nifty Midcap 100 | +0.9% |
| Nifty Smallcap 100 | +2.7% |
| Nifty PSU Bank | +5.0% |
| Nifty Media | -3.9% |
Frequently Asked Questions
How much did the Sensex and Nifty gain this week?
The Sensex gained 404.53 points, or 0.5%, while the Nifty 50 rose 187.05 points, or 0.8%, during the week ended August 7.
Which sector performed best during the week?
The Nifty PSU Bank index was the strongest-performing sectoral index, gaining 5%, followed by Nifty India Defence, which rose 4.3%.
What Happens Next for the Market?
The weekly market performance leaves investors watching several factors, including geopolitical developments, crude oil prices, inflation expectations and the impact of the RBI’s policy stance. The rise in India VIX also indicates that volatility remains an important factor for market participants.
For the week ended August 7, the broader market remained stronger than the headline indices, particularly in smallcaps, while PSU banks and metal stocks provided significant support to the overall market.
Financial Disclaimer: This article is intended for informational and educational purposes only and should not be considered investment, financial or trading advice. Market prices and financial conditions can change rapidly. Readers should conduct their own research and consult a qualified financial adviser before making any investment decision.
Source attribution: Information in this article has been compiled and rewritten exclusively from the source material supplied for this report, including the cited Associated Press report referenced in the supplied material.
