6-Day Market Rally: Sensex Reclaims 82,000, Nifty Pharma Leads Gains

Market Update at 4:15 PM: Indian equity markets extended their winning streak for the sixth straight session on Thursday, August 21, with the Sensex reclaiming the 82,000 mark. The uptrend was largely driven by Large-Cap financial stocks after the GST panel of state ministers proposed exempting taxes on health and life insurance premiums for individuals.

At the closing bell, the Nifty 50 rose 33.20 points or 0.13 per cent to end at 25,083.75, while the Sensex gained 142.87 points or 0.17 per cent to close at 82,000.71. The rally was led by ICICI Bank, Reliance Industries, L&T, Bajaj Finance and HDFC Bank, though broader market sentiment stayed cautious due to upcoming tariff risks despite support from GST reforms and an S&P upgrade.

Out of 11 key sectoral indices, five ended higher. The Nifty Pharma index advanced 0.95 per cent, emerging as the top gainer, supported by Mankind Pharma and Cipla. On the other hand, the Nifty FMCG index slipped 0.64 per cent, making it the worst performer of the day.

The broader markets underperformed as the Nifty Midcap 100 fell 0.38 per cent, while the Small-Cap 100 index closed marginally lower by 0.01 per cent. Market participants continued to track Mid-Cap and small-cap counters closely, with many investors seeking potential multibagger opportunities despite short-term volatility.

Among individual stocks, Nazara Technologies declined 13 per cent in two days on concerns that its investment in PokerBaazi could be at risk if the new gaming bill bans real money games. Clean Science dropped 2.69 per cent following a pricing error in a block deal. India Cements surged 5.5 per cent after UltraTech Cement’s offer-for-sale (OFS) to divest a 6.5 per cent stake opened.

Key contributors to Nifty’s rise included ICICI Bank (+25.38 points), Reliance Industries (+17.61 points) and Cipla (+5.90 points). In contrast, Eternal (-6.90 points), PowerGrid (-4.48 points) and Hindustan Unilever (-4.09 points) dragged the index lower.

On August 21, 2025, market breadth was marginally positive with 1,506 advancing stocks against 1,476 declines, while 86 remained unchanged. A total of 82 stocks hit fresh 52-week highs, while 28 touched their 52-week lows. Additionally, 99 stocks were locked in their upper circuits, whereas 35 stocks hit lower circuits.

Market Update at 12:15 PM: Indian benchmark indices extended their rally for the sixth consecutive session on Thursday, marking the longest winning streak in more than two months.

As of 12:00 PM, the BSE Sensex was trading higher by 253.54 points, or 0.31 per cent, at 82,111.38. The NSE Nifty50 advanced 56.50 points, or 0.23 per cent, to 25,107.05 levels. This continuous uptrend reflects steady momentum across large-cap and mid-cap stocks.

Among the Top Gainers on the Sensex were Larsen & Toubro, Reliance Industries, Bajaj Finserv, BEL, and Bajaj Finance. On the other hand, Power Grid Corp, NTPC, Eternal, HUL, and Asian Paints Corporation were among the laggards.

Broader market indices also witnessed buying interest. The Nifty MidCap100 index was up 0.09 per cent, while the Nifty SmallCap100 index added 0.37 per cent. Many investors continue to track small-cap and mid-cap counters for potential multibagger opportunities, especially ahead of upcoming Quarterly Results and dividend announcements.

Sector-wise, the Nifty Realty index advanced 1.06 per cent, supported by optimism around housing demand and potential IPO activity in the sector. Nifty Pharma and Nifty Healthcare gained 0.84 per cent each. On the downside, Nifty FMCG fell 0.52 per cent, followed by Nifty Auto at 0.12 per cent and Nifty Media at 0.09 per cent.

Market Update at 10:30 AM: Indian Equity Benchmarks Rise 0.2% Amid Insurance Tax Proposal and Fed Watch

India’s equity benchmarks opened higher on Thursday, extending a recent rally, with investors focusing on financial stocks following a proposal to exempt insurance premiums from tax. The Nifty 50 was up 0.23 per cent at 25,106.5 points, while the BSE Sensex gained 0.27 per cent to 82,067.85 as of 9:25 a.m. IST.

The indexes have risen in each of the last five sessions, climbing about 2 per cent, supported by proposed reforms to India’s goods and services tax (GST) regime and S&P Global Ratings’ recent upgrade of the country’s sovereign rating.

Thirteen of the 16 major sectors logged gains at the open. High-weight financials rose 0.25 per cent, led by insurers such as HDFC Life, ICICI Prudential Life, SBI Life and Niva Bupa, which advanced between 1 per cent and 3 per cent. A panel of Indian state ministers on GST has proposed exempting health and life insurance premiums for individuals from tax, potentially benefiting both large-cap and mid-cap insurance stocks.

Index heavyweight Reliance Industries rose 1 per cent after JP Morgan reiterated an "overweight" rating on the oil-to-telecom conglomerate. IT stocks, which had risen about 3 per cent over the previous two sessions, fell 0.4 per cent ahead of the Federal Reserve’s Jackson Hole symposium, limiting overall gains on the benchmark indexes.

Pre-Market Update at 7:30 AM: On Thursday, August 21, the benchmark indices Sensex and Nifty 50 are expected to open on a muted note, tracking mixed signals from global markets. At 7:12 AM, the GIFT Nifty was seen trading at 25,083, just 4 points higher than its previous close. Asian markets displayed mixed trends, while the US stock market closed lower overnight after the release of the US Federal Reserve’s July meeting minutes.

The minutes of the Reserve Bank of India’s Monetary Policy Committee meeting in August indicated that members flagged global trade disputes and tariff-related uncertainties as risks to growth, though the domestic economy remained stable with inflation expectations staying under control. On the institutional flows front, Foreign Institutional Investors (FIIs) were net sellers for the second session in a row, offloading equities worth Rs 1,100.09 crore on Wednesday, August 20. Domestic Institutional Investors (DIIs), however, maintained their buying streak for the 32nd consecutive session, purchasing shares worth Rs 1,806.34 crore.

Indian stock markets extended their winning run to the fifth straight session on Wednesday, led by strength in technology and consumer stocks. The Nifty 50 gained 0.28 per cent to close at 25,050.55, while the Sensex rose 0.26 per cent to 81,857.84. Over the last five sessions, the indices have advanced around 2.3 per cent and 2 per cent, respectively. The Nifty Midcap index added 0.5 per cent, and the Nifty Smallcap index climbed 0.3 per cent. Technology stocks, with strong US revenue exposure, surged 2.7 per cent ahead of the Federal Reserve meeting scheduled from August 21–23.

Growth in India’s eight core infrastructure sectors slowed to 2 per cent in July 2025, compared with 6.3 per cent a year earlier. In June, the expansion was 2.2 per cent. For April–July of the current fiscal year, the sectors grew 1.6 per cent, significantly lower than the 6.3 per cent growth seen during the same period last year.

On Wall Street, indices ended lower on Wednesday as investors booked profits in technology stocks while shifting focus to energy, healthcare, and consumer staples. The Dow Jones Industrial Average added 16.04 points, or 0.04 per cent, finishing at 44,938.31. In contrast, the S&P 500 slipped 15.59 points, or 0.24 per cent, to settle at 6,395.78, while the Nasdaq Composite declined 142.09 points, or 0.67 per cent, closing at 21,172.86. Minutes from the Fed’s July meeting revealed policymakers kept rates steady at 4.25–4.50 per cent, with two dissenters. Investors now await Chair Jerome Powell’s speech at Jackson Hole, with markets pricing in a possible 25-basis-point cut in September.

Japan’s manufacturing activity contracted for the second straight month, with the flash S&P Global Manufacturing PMI at 49.9 in August, up from July’s 48.9. Meanwhile, the US dollar weakened after President Donald Trump called for Fed Governor Lisa Cook’s resignation, with the dollar index slipping 0.13 per cent to 98.20.

Gold prices edged down 0.2 per cent to USD 3,343.43 per ounce in early Asian trade as investors waited for Powell’s remarks at Jackson Hole for rate cut cues. Crude oil extended its gains, with WTI futures rising to USD 62.8 per barrel and Brent crude nearing USD 67 per barrel, supported by a larger-than-expected decline in US inventories.

For today, Titagarh Rail System, PG Electroplast and RBL Bank remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.