The Indian equity indices Sensex and Nifty were sharply down on Tuesday, August 18, as both hit the day's lows. Other stocks were weighed down by weakness in IT and realty stocks, but some such as Tube Investments, Bosch and Indo-MIM were able to do well despite the market pressure.

Key Highlights

• Sensex and Nifty declined significantly, with Sensex dropping 493 points and Nifty dropping below 24200.
• Sensex and Nifty ended lower as stocks of IT and realty companies dragged down the index.

The Sensex slid 493 points to close at 77,235, while the Nifty index slipped 133 points to 24,155, below the crucial 24,200 levels. The Nifty Bank stock traded down by 235 points to 2,57,262 and the Midcap Index dipped 278 points to 63,539. The four major indices closed on a loss of over 0.3%, for the second consecutive session after a closing auction session, with the Nifty trading a loss of 11 points, Sensex 90 points and Nifty Bank 46 points.

IT stocks were among the key drags on the market on Tuesday. Infosys, Wipro and HCL Technologies each fell 2%, adding sustained pressure on the benchmark indices through the session. Realty stocks were among the top midcap losers of the day, with Oberoi Realty and Lodha among the sharpest decliners, contributing to the Midcap Index's 278-point fall to 63,539.

Inox Wind reversed Monday's gains to end 4% lower, while Colgate declined 3% as brokerages flagged margin concerns following the company's recent investor meet. Tube Investments gained 8% on a positive brokerage outlook, while Bosch extended its ongoing rally, climbing 19% so far this month.

Defence stocks advanced following the government's new indigenous procurement list, with Cochin Shipyard gaining 2%. Indo-MIM surged 10% on strong first-quarter results, with the stock now nearly doubling from its IPO issue price.

Nelco fell 11% after announcing a Rs 190 crore investment in Lunar Holdco/Elveo Mobile. Meanwhile, Milky Mist made a strong market debut, extending its gains to 30% after listing at an 18% premium to its issue price. Only 10 Nifty stocks closed in the green on the day, with Axis Bank and Max Healthcare among the top gainers.

Also Read: Sensex and Nifty Extend Losing Streak to Fifth Day

Top Gainers and Losers on the Sensex

From the Sensex basket, Axis Bank, Max Healthcare Institute, Hindustan Aeronautics, Power Grid Corporation of India, Mahindra & Mahindra and Grasim Industries were the major gainers. Asian Paints, HCL Technologies, Tata Motors Passenger Vehicles, Infosys, Wipro and Hindustan Unilever were among the biggest laggards.

Commenting on market direction, Jai Bala, CMT at Cashthechaos.com, said markets have been dipping lower and are now approaching the crucial 24,100-24,050 zone. He noted that the primary risk to equity markets is coming from cross-asset moves — particularly crude oil, which declined to $67 from April before rallying to $93.5 in a corrective bounce.

Bala cautioned that any move above $93.5 on WTI crude could trigger a second-order effect on stock market, extending the ongoing bond market rout and creating knock-on pressure on stocks. He added that if crude breaches this level, he would likely revise his crude oil target higher to $145, though this remains an outlier scenario he does not currently expect.

On the Nifty, Bala said 24,050 represents the maximum downside he anticipates in the near term. He noted that since the closing auction session began on August 3, the index has seen a slow, steady decline, making the 24,050 level a critical level to watch. Should this level fail to hold, he said the anticipated bullish run into the Diwali season could get delayed, potentially pushing fresh record highs into 2027, with a break below opening the door to further downside toward levels as low as 23,000.

On the banking index, Bala said the Nifty Bank appears comparatively better placed, having formed a higher-high sequence, but would need to hold above 55,800 for the bullish structure to remain intact.