Stock Market Update: Nifty Fills Pending Gap, Reliance Drags Index Lower
Indian equity markets witnessed sharp selling pressure on Tuesday as benchmark indices erased early gains and closed significantly lower. The much-anticipated gap created during the GST rate-cut announcement has now been filled, ending weeks of speculation about a technical correction.
Nifty 50 & Bank Nifty Performance
The Nifty 50 slipped nearly 250 points, closing at 24,712, while the Bank Nifty tumbled over 700 points. Market analysts highlighted that the 55,000 level on Bank Nifty was coinciding with the 100-day exponential moving average, which had been acting as a strong support for the last two weeks. Once this level was breached, indices fell sharply “like a pack of cards.”
The biggest drag came from Reliance Industries, which dropped around 2%, exerting heavy pressure on the broader market.
Market Breadth Weak
Market breadth remained extremely negative. Over 2,000 stocks declined compared to just 600 advancing stocks, reflecting a weak 1:3.5 advance-decline ratio. Analysts cautioned that this correction may not be over, as economic data continues to point to weak fundamentals despite temporary relief from GST reforms.
Sector & Stock Highlights
Top Gainers (Mid & Small Cap): RattanIndia (+10%), Crafts Automation, Ola Electric, and Britannia. Ola Electric has surged 23% in the past week, while GPL gained 17%.
Top Losers (Mid & Small Cap): JEL (-12%), BSE (-11%), Bajaj Holdings, GRSE, and Pfizer.
Nifty 50 Gainers: Eicher Motors, Hindustan Unilever, Maruti Suzuki, ITC, Nestlé India.
Nifty 50 Losers: Shriram Finance (-4%), Sun Pharma, Tata Steel, Bajaj Finance.
NBFCs, which had earlier rallied on hopes of lower interest rates, are now under pressure amid rising concerns over non-performing assets and weak loan demand.
Global Cues
Global markets offered little support. The Dow Jones Industrial Average was up 18 points, while the Nasdaq remained flat. The S&P 500 also showed muted movement. Meanwhile, the GIFT Nifty traded 70 points lower in after-market hours, signaling a weak start for the next session.
Stock-Specific Developments
Radico Khaitan: Its newly launched vodka brand Spirit of Kashmir won “Best Vodka” at the 7th Iconic Awards within a month of launch, potentially boosting sales momentum.
Reliance Industries: The stock has slipped below its 100-day EMA and is hovering near the 200-day EMA, indicating weak technical strength.
Nazara Technologies: After facing regulatory headwinds and heavy selling, the stock corrected from ₹1,500 to near ₹1,000. With only 8% of revenue now dependent on India, analysts believe most negatives are priced in.
Avanti Feeds: Despite a mild rebound, exports remain under pressure as nearly 40% of shipments to the U.S. have been put on hold due to tariff uncertainties. Similar weakness is visible in peers such as Waterbase and Apex Frozen Foods.
Astral Ltd.: Mirae Asset has issued a buy rating with a target price of ₹1,643 (current price: ₹1,390), citing strong growth guidance (16–18%) and expansion in adhesives and PVC product segments.
Outlook
While today’s correction completed the long-pending “gap filling,” experts warn that the market lacks strength to sustain a strong uptrend. With Bank Nifty already breaching key support levels, analysts see scope for another 1,000-point downside.
Trading will remain shut on August 27 (Wednesday) on account of Ganesh Chaturthi.
