Daily Market Update - 12th August 2026 by Ventura Securities Ltd
Market Outlook:
Indian equity markets are expected to open on a marginally positive note, with Gift Nifty gaining 0.12%, despite weak global cues. On 11 August, US markets closed lower, with the S&P 500 declining 0.32%, the Dow Jones falling 0.34%, and the Nasdaq slipping 0.33%. Domestic benchmarks also remained under pressure, with the Sensex declining 0.49% and the Nifty 50 falling 0.46% to 24,471.70, while Bank Nifty declined 0.42%. Market breadth remained weak, with the NSE advance-decline ratio at 1,487:1,865 and BSE at 1,919:2,396. Rising crude oil prices, a weaker rupee and pressure in financial stocks continue to weigh on sentiment, although pharma and IT provided some downside cushion.
FII and DII Activity:
Institutional flows remained positive but muted. Foreign Institutional Investors (FIIs) were net buyers of approximately ?259 crore, while Domestic Institutional Investors (DIIs) recorded net buying of around ?25 crore. The simultaneous buying by both institutional categories provides some support to the market, although the relatively small quantum of flows suggests that investors remain cautious amid elevated crude prices and global uncertainty.
Sector Activity:
Sectoral performance remained mixed, with Nifty Pharma (+1.0%) emerging as the strongest performer, followed by Nifty IT (+0.6%), Consumer Durables (+0.2%), and Health (+0.3%). On the downside, Nifty FMCG (-1.2%) and Nifty Metal (-1.0%) witnessed notable selling, while Auto (-0.6%) and Private Bank (-0.6%) also remained under pressure. Within the broader market, MRPL, Gland Pharma and ARE&M supported the Smallcap index, while Policybazaar, Naukri and LICI led gains in the Midcap segment. The divergence across sectors indicates continued stock-specific rotation rather than broad-based risk appetite.
Long, Short, Long Unwinding & Short Covering:
Derivative positioning reflected a mix of bullish and bearish stock-specific bets. Fresh long build-up was witnessed in LICI, Swiggy, LTM, Motilal Oswal Financial Services and BSE, indicating increased buying interest in financial, technology and consumer-facing counters. Fresh short positions emerged in APL Apollo Tubes, PI Industries, Bharat Forge, Jubilant FoodWorks and Max Healthcare, signalling caution in these stocks. Long unwinding was visible in Hyundai Motor India, Sona BLW Precision Forgings, Power India, Pidilite Industries and Hindustan Zinc, suggesting profit booking or reduction in bullish exposure. Meanwhile, short covering emerged in Bosch, Dr. Reddy's Laboratories, Paytm, Policybazaar and Eternal, indicating easing bearish positions in these counters.
Top 5 News Highlights:
Adani Enterprises gained attention after a US District Judge dismissed the DOJ's criminal fraud and bribery case against Gautam Adani related to the November 2024 indictment, removing a significant legal overhang for the conglomerate.
Bharat Electronics secured additional orders worth ?541 crore, taking its order book to ?72,258 crore, reinforcing strong order-flow visibility in the defence segment.
Manappuram Finance reported a 41% YoY rise in Q1 standalone net profit to ?551.8 crore, driven by strong gold-loan growth, while the board declared an interim dividend of ?1 per share.
Zen Technologies received a ?295 crore Ministry of Defence order for simulators, strengthening its order book to ?1,239 crore despite a softer Q1 performance.
Jupiter Wagons secured two orders worth ?211.27 crore, including orders from JSW Port Logistics and Orissa Alloy Steel, strengthening near-term revenue visibility amid the ongoing railway-capex cycle.
Overall, Indian equities remain under pressure from rising crude oil prices, rupee weakness and financial-sector selling, although marginal FII/DII buying and strength in pharma and IT are providing some support. With Brent crude approaching $90/bbl amid uncertainty surrounding the Strait of Hormuz, investors are likely to remain cautious and selective, while earnings and stock-specific developments continue to drive opportunities.
SMS subject to Disclosures and Disclaimer goo.gl/8bCMyQ
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