Indian Benchmark Indices Inch Higher, Led by Financials, Reliance

Market Update at 10:15 AM: 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.