India's Nifty erases Monday's closing-auction gains as heavyweights, volatility weigh

ICICI Bank

04/08/2026 08:17

** India's Nifty 50 .NSEI falls 1%, unwinding Monday's closing-mechanism-led surge, while Sensex .BSESN slips 0.2%
** Benchmarks rose 1.6% and 0.7%, respectively, on Monday after the new closing auction mechanism for F&O stocks triggered a rare divergence
** Markets are recalibrating to new framework ahead of Nifty's weekly expiry, with caution prevailing over worries of heightened volatility and choppy trading, two traders say
** Volatility index .NIFVIX jumps to 12.25, set  to close at a one-week high
** HDFC Bank HDBK.NS falls 1.7% and ICICI Bank ICBK.NS loses 1.2%, pulling banking and financial indexes down 1.3% each
** Reliance RELI.NS drops 1.8% after India raises windfall taxes on fuel exports, pressuring export realisations and refining margins
** Fifteen of 16 major sectors trade lower
** Small-caps .NIFSMCP100 buck the trend, rising 0.3%, while mid-caps .NIFMDCP100 fall 0.5%
** Brent crude LCOc1 rises 1.1% to $85 a barrel amid uncertainty over talks to end the U.S.-Iran war
** LIC LIFI.NS falls 8% after government launches a 6.5% stake sale at a 10.9% discount over its last close

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))