Sensex, Nifty erased their early gains after Trump warned of a ‘very strong strike’ if the Strait of Hormuz is not reopened soon.
August 05, 2026 / 13:59 IST
Stock Market Today News: Sensex, Nifty see profit booking in trade.
- Sensex, Nifty pared early gains on Wednesday.
- Geopolitical concerns over Iran cited.
- Profit booking and resistance also contributed.
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The benchmark equity indices Sensex and Nifty gave up their early gains on Wednesday and were trading in red amid fresh geopolitical concerns after US President Donald Trump’s comments on Iran and the Strait of Hormuz.
The BSE Sensex had jumped 626.43 points, or 0.79 percent to 79,055.38 in early trade, while the NSE Nifty advanced 62.70 points, or 0.25 percent to 24,677.60.
However, at 1:57 pm, the Sensex was down 90.09 points or 0.11 percent at 78,338.86, and the Nifty was down 103.25 points or 0.42 percent at 24,511.65. About 2,140 shares advanced, 1,665 shares declined, and 182 shares were unchanged. Sensex fell 700 points from day’s high while Nifty was trading near the psychologically important 24,500-mark.
ITC, HCL Technologies and Coal India fell up to 1 percent, while Shriram Finance and Larsen & Toubro gained up to 2 percent.
Key reasons behind market paring gains
1) Trump’s comments on Iran: US President Donald Trump has said the Strait of Hormuz would reopen “very soon” and warned Iran that it would face a “very strong strike” if the strategic waterway remained blocked.
Speaking to Fox News during a visit to California, Trump said discussions with Iran were continuing and claimed both sides were engaged in “very good discussions” aimed at resolving the conflict. When asked about the situation with Iran, he said, “We’ll know in 48 hours.”
“Although global uncertainties have not completely receded, investors appear increasingly willing to look beyond near-term geopolitical risks and refocus on corporate earnings, liquidity conditions and domestic growth prospects,” Hariselvan Radhakrishnan, Founder and CEO of HST Wealth, said.
2) Profit booking: Profit booking emerged at higher levels after the sharp early rally, with investors booking gains following the initial buying momentum.
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3) Resistance near 24,700: The market came under pressure after the Nifty briefly touched the 24,677.60 level during the session.
“For today’s session, the previous session’s high of 24,700 and 24,772 remain the key resistance zones, and a move above this level could pave the way towards 24,900. On the downside, 24,500 is expected to provide immediate support, followed by the previous session’s low of 24,427,” analysts at Axis Securities said.
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Paras Bisht A financial journalist with over 10 years of experience, specialising in tracking stock market movements and fundamental developments that impact investors and the broader economy. A keen observer of global financial markets, I regularly engage with leading market voices to write stories. At Moneycontrol, I focus on decoding market trends, policy shifts and economic changes, driven by a constant passion to learn, analyse, and share knowledge with my readers.
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