Nifty, Sensex End 0.4% Higher; Nifty IT Index Surges Over 2%

Market Update at 4:15 PM: On Monday, August 25, Indian benchmark indices closed higher, led by strong gains in information technology stocks. The rally came after US Federal Reserve Chair Jerome Powell hinted at a possible interest rate cut next month, supporting investor sentiment. At the close, the Nifty 50 advanced 97.65 points or 0.39 per cent to settle at 24,967.75, while the Sensex gained 329.05 points or 0.40 per cent to end at 81,635.91. During the day, the Nifty 50 briefly touched the 25,000 mark, recording an intraday high of 25,021, driven by Large-Cap IT stocks such as Infosys and TCS.

The Nifty IT index surged 2.37 per cent, making it the top-performing sector, closing above its 50-DEMA. Infosys and TCS were the leading gainers, followed by HCL Technologies. Meanwhile, the Nifty Media index declined 1.67 per cent, making it the worst-performing sector of the day. Metal stocks rose nearly 1 per cent, supported by a weaker USD and expectations of better demand amid rate cut hopes.

Infosys added 36.04 points to the Nifty 50, followed by TCS (+19.42 points) and HCL Technologies (+8.85 points). On the downside, ICICI Bank (-5.13 points), BEL (-2.28 points), and Nestle India (-1.52 points) dragged the index. Mazagon Dock Shipbuilders gained over 2 per cent after the Centre cleared Rs 70,000 crore submarine project negotiations, adding strength to defence-related stocks. 

Yes Bank rose 1.4 per cent as the RBI cleared SMBC’s stake acquisition. Nazara Technologies fell 3.5 per cent, extending its losing streak to a fourth consecutive session following the Lok Sabha’s approval of the online gaming bill. Ola Electric rallied 2.92 per cent amid policy discussions to accelerate EV adoption. Reliance Power and Reliance Infrastructure fell up to 5 per cent, even as Anil Ambani distanced himself from the Rs 2,929 crore fraud probe.

Broader markets ended mixed, with the Nifty Midcap 100 rising 0.12 per cent, while the Nifty Smallcap 100 dipped 0.04 per cent. Market breadth favoured declines, with 1,614 stocks ending lower against 1,414 advancing out of 3,110 traded on the NSE. A total of 76 stocks hit their 52-week highs, while 35 touched 52-week lows. Additionally, 114 stocks were locked in upper circuits and 85 in lower circuits, reflecting volatility across Small-Cap and Mid-Cap counters.

Market Update at 12:15 PM: Benchmark Indian equity indices extended their gains, continuing to trade higher after starting the week’s first session in positive territory. The upward movement tracked strength in global peers and supportive cues from global central banks.

At 12 PM, the BSE Sensex was trading at 81,609, up 302.72 points or 0.37 per cent, while the NSE Nifty50 gained 89.9 points or 0.36 per cent to trade at 24,960. The rally was supported by buying interest across large-cap and mid-cap counters.

Speaking at the FIBAC 2025 event, RBI Governor Sanjay Malhotra stated that India is poised to become the world’s third-largest economy. He noted that the country is at a critical juncture, navigating a global environment marked by trade uncertainty and geopolitical tensions. “We need to push the frontiers of truth,” the Governor remarked.

Global cues also played a role in the rally. Buying in Indian and international equities gained momentum after US Fed Chair Jerome Powell signaled that rate cuts remain on the table at the Jackson Hole summit in Wyoming. Powell cited weakness in the US jobs market but also highlighted risks of higher inflation due to President Donald Trump’s tariff measures. The commentary lifted sentiment in both developed and emerging markets.

On the domestic front, Infosys, TCS, Tech Mahindra, HCL Tech, Bajaj Finance, NTPC, Trent, Ultratech Cement, Asian Paints, and Tata Steel were the Top Gainers on the Sensex, advancing up to 2 per cent. In contrast, Bharti Airtel, ICICI Bank, Maruti Suzuki, Sun Pharma, HUL, ITC, and M&M declined up to 1 per cent.

In the broader markets, the Nifty MidCap index gained 0.37 per cent, while the Nifty SmallCap index added 0.35 per cent. Sectorally, Nifty IT led the pack with a 2.5 per cent rise, supported by strong buying in large-cap tech stocks. It was followed by the Nifty Realty index (0.8 per cent) and the Nifty Metal index (0.5 per cent).

Market Update at 10:30 AM: Indian equity markets began Monday’s session on a positive note, following strength in other Asian indices, after U.S. Federal Reserve Chair Jerome Powell indicated that an interest rate cut could be on the table next month.

At 9:18 a.m. IST, the Nifty 50 traded 0.28% higher at 24,939.15, while the BSE Sensex gained 0.29% to 81,542.95. Out of 16 major sectors, 12 were trading in the green. The Nifty Midcap and Nifty Smallcap indices also edged up, advancing 0.4% and 0.3%, respectively.

Powell, in his Friday remarks, highlighted the rising risks to the labor market while stressing that inflationary pressures still persist, suggesting that the September decision on rates remains uncertain. A potential rate cut in the U.S. typically boosts the appeal of emerging markets like India by attracting foreign inflows, while also putting pressure on U.S. Treasury yields and the dollar.

Pre-Market Update at 7:30 AM: On Monday, August 25, Indian equity benchmarks, Sensex and Nifty 50, are expected to open on a positive note, tracking strong global trends and rising expectations of a US Federal Reserve rate cut. As of 7:07 AM, the GIFT Nifty was trading near 24,969, up 91 points from its previous close.

Asian markets traded higher in early trade, while Wall Street ended last week strongly, with the Dow Jones hitting a record closing high after Jerome Powell’s address at the Jackson Hole symposium.

On Friday, August 22, Foreign Institutional Investors (FIIs) turned net sellers, offloading equities worth Rs 1,622.52 crore. Domestic Institutional Investors (DIIs) also booked profits, selling shares worth Rs 329.25 crore. This marked the end of their longest buying streak of 33 consecutive sessions.

Profit booking weighed on Indian equities on Friday. The Sensex fell 0.85 per cent to 81,306.85, slipping over 700 points during the day. The Nifty 50 also declined 0.85 per cent to close at 24,870.10. Broader markets were more resilient, with the BSE Midcap index down 0.23 per cent and the Smallcap index lower by 0.35 per cent.

US markets closed higher on Friday. The Dow Jones advanced 846.24 points or 1.89 per cent to 45,631.74, the S&P 500 rose 96.74 points or 1.52 per cent to 6,466.91, and the Nasdaq gained 396.22 points or 1.88 per cent to 21,496.53.

US Federal Reserve Chair Jerome Powell signalled that policy adjustments could be on the table in coming months, hinting at a possible interest-rate cut in September. However, he cautioned that the final decision would depend on inflation and labour market data.

The US dollar index rose 0.24 per cent to 97.50 after dropping sharply last week. Gold slipped 0.1 per cent to USD 3,367.50/oz in early Asian trade, while crude oil remained firm with Brent futures above USD 67 per barrel and WTI near USD 68 per barrel.

This holiday-shortened trading week will see investors focus on multiple triggers, including the monthly F&O expiry, India GDP data, changes in the Nifty 50 index, global crude oil prices, and other macroeconomic indicators. IPO activity, Quarterly Results, dividend announcements, right issues, and bonus declarations in large-cap, mid-cap, and small-cap companies may also influence market direction.

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

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