Major Indices
| Index | Closing level | % chg | Commentary |
|---|---|---|---|
| BSE Sensex | 81,635.91 | +0.40% | Blue‑chip index ended higher on optimism over Fed rate cuts; IT heavyweights drove gains. |
| NSE Nifty 50 | 24,967.75 | +0.39% | Broader index hit an intraday high of 25,021 before profit‑booking pulled it just below 25k. |
| Nifty Midcap 100 | 57,701.50 | +0.12% | Mid‑caps underperformed the benchmarks; investors booked profits after last week’s rally. |
| Nifty Smallcap 100 | 8,612.65 | –0.18% | Smallcaps declined as risk appetite shifted to large IT names. |
| Nifty Bank | 55,139.30 | –0.02% | Banking index was flat; large private banks like ICICI Bank and Kotak Bank slipped. |
| Nifty IT | 36,280.05 | +2.37% | Best‑performing sector, rallying on hopes of lower U.S. rates and strong Q1FY26 results from TCS, Infosys and HCL Tech. |
Sectoral Performance
- Information Technology: up 2.37 %, driven by dovish Fed comments and a weaker rupee. Large IT firms (Infosys, TCS, HCL Tech, Wipro, Tech Mahindra) rallied 2–3 %. Strong Q1FY26 earnings and an improving order book supported sentiment.
- Realty: advanced 0.75 % on hopes that softer interest rates will spur housing demand. Companies like Brigade Enterprises and Oberoi Realty gained.
- Metal: up 0.65 %; steelmakers rose as Chinese stimulus expectations buoyed base‑metal prices.
- Consumer Durables: added 0.57 %; companies in home appliances and consumer electronics benefited from expectations of GST reforms.
- Media: fell 1.67 %; continued regulatory uncertainty and profit‑taking weighed on the sector.
- Banking/Financials: mixed. Nifty Bank slid 0.02 % as private banks were weak, while PSU Bank index slipped 0.25 %.
Market breadth was negative with ~1,414 stocks advancing and 1,615 declining across the NSE. BSE market capitalisation rose by more than ₹1 lakh crore as large IT stocks added value.
Foreign & Domestic Institutional Activity
Foreign institutional investors (FIIs) remained net sellers, extending a six‑week selling streak. Month‑to‑date FII outflows exceeded ₹25,000 crore, driven by caution over US‑China trade tensions and a strong U.S. dollar. Domestic institutional investors (DIIs) provided support, pumping more than ₹66,000 crore into equities in August.
Top Gainers and Losers (Nifty 50 Constituents)
Top Gainers
| Stock | % Change | Comments |
|---|---|---|
| Infosys | +3.3% | Leading the rally after upbeat Q1FY26 results and strong commentary; benefited from Powell’s dovish tone. |
| TCS | +3.2% | Shares rose as analysts flagged robust order pipeline and potential margin expansion. |
| HCL Technologies | +3.1% | Strong quarterly results and bullish guidance attracted investors. |
| Wipro | +3.1% | Rally followed news of cost savings and order wins; valuations remain attractive after recent underperformance. |
| Tech Mahindra | +1.7% | Benefited from broad IT optimism and hopes of improved performance in coming quarters. |
Top Losers
| Stock | % Change | Comments |
|---|---|---|
| Adani Enterprises | –1.4% | Booked profits after a sharp run‑up; concerns about valuation re‑emerged. |
| Apollo Hospitals | –1.2% | Correction following a strong rally; investors rotated into IT names. |
| Nestlé India | –1.1% | FMCG stocks came under pressure due to high valuations and profit‑taking. |
| BPCL | –1.0% | Fuel marketing margins may be squeezed if crude oil prices rise further. |
| State Bank of India (SBI) | –1.0% | Banking sector lagged as investors booked profits and awaited clarity on credit growth. |
What Moved the Market
- Dovish Fed signals: At the Jackson Hole Symposium, U.S. Federal Reserve Chair Jerome Powell acknowledged risks to the U.S. labour market and hinted that rate cuts could be considered in 2025. The prospect of easier global liquidity drove a strong rally in Indian IT stocks and improved risk appetite.
- Global risk‑on sentiment: US and European markets ended higher, and Asian markets were mostly positive as inflation concerns eased. However, trade tensions lingered after the U.S. threatened new tariffs on Chinese goods, prompting caution.
- Domestic reforms and macro news: Fitch affirmed India’s sovereign rating at BBB‑ with a stable outlook. Prime Minister Modi reiterated plans for next‑generation GST reform (“GST 2.0”) to simplify tax compliance and lower tax slabs; this boosted consumption‑linked stocks. Expectations of a good monsoon season also supported sentiment.
- FII–DII dynamics: Continuous FII selling kept upside in check. DIIs absorbed much of the supply, preventing a deeper fall. Market participants expect FIIs to turn buyers if global risk appetite improves.
- Earnings and company‑specific moves: Strong results from large IT companies and positive guidance drove sectoral outperformance. In contrast, profit‑booking hit FMCG and banking names.
Global Cues
- Federal Reserve: Powell’s comments raised hopes that the U.S. Fed may cut rates in 2025 amid slowing job growth. This helped ease U.S. Treasury yields and support emerging‑market equities.
- Japan and Europe: Japan’s consumer inflation eased to 3.1 %, raising expectations that the Bank of Japan might maintain ultra‑easy policy. Germany’s GDP contracted 0.3 % in Q2, highlighting weakness in Europe and reinforcing the case for stimulus.
- Trade tensions: The U.S. hinted at more tariffs on Chinese goods, which could hurt global trade. Investors remained cautious but optimistic that negotiations would continue.
Stocks to Watch & Corporate Updates
- Index reshuffling: InterGlobe Aviation (IndiGo) and Max Healthcare are set to join the Nifty 50 in the September review, replacing HDFC Bank and Hero MotoCorp. This may prompt portfolio adjustments by passive funds.
- Yes Bank: The RBI approved Japan’s Sumitomo Mitsui Banking Corporation (SMBC) to acquire up to a 24.99 % stake in Yes Bank. The deal must be completed within six months and the holding cannot be increased later without RBI approval.
- Reliance Industries (RIL): Its subsidiary New Transmission Projects Ltd (NTPL) acquired the remaining 49 % stake in North East Transmission (NETPL), boosting RIL’s control over the project.
- Titagarh Rail Systems: Won an order worth ~₹91 crore to supply wagons to the Railways, signalling strong order inflow.
- Brigade Enterprises: Launched a 2.3 million sq ft residential project in Hyderabad with a revenue potential of over ₹2,000 crore.
- IDBI Bank: Received approval from exchanges to re‑classify Life Insurance Corporation (LIC) as a public shareholder instead of a promoter, paving the way for divestment.
- RailTel secured a ₹13.16 crore order from the National Highways Authority of India for communication systems.
- Interarch Building Solutions bagged a ₹90 crore project to construct industrial buildings.
- IndusInd Bank: CRISIL affirmed its credit rating, citing robust asset quality and capital adequacy.
- Eris Lifesciences: Received a GST show‑cause notice from authorities regarding alleged tax underpayment; the firm plans to contest the demand.
- OYO Hotels & Homes: Reportedly preparing to file draft papers for a ₹50 billion (USD 7–8 billion) IPO in November 2025 after strong Q1 results and rebranding efforts.
- Packaging paper stocks: Government imposed a minimum import price on virgin multi‑layer paper board to protect domestic producers; shares of TNPL, JK Paper and West Coast Paper surged up to 17 % in reaction.
Technical View and Outlook for Tomorrow
- Nifty 50: The index formed an “Evening Star” pattern on daily charts last week, signalling potential consolidation. Key resistance remains at 25,050–25,100; a breakout above 25,150 could trigger a new uptrend. Immediate support is at 24,860–24,830, followed by 24,650–24,600 (100‑day EMA).
- Bank Nifty: Remains weak relative to the Nifty. Support lies at 54,800–54,900; resistance at 55,600–55,700. A decisive move on either side will set direction.
- Market tone: After Monday’s rally, the market may consolidate near current levels as it digests the Fed’s message and awaits key macro data (U.S. PCE inflation, India’s GDP figures). Investors should monitor FII flows and global cues closely.
Expected Scenario for Next Trading Day (26 Aug 2025)
- The broader tone is cautiously positive with an upside bias, supported by IT outperformance and expectations of rate cuts. However, heavy FII selling and profit‑booking at higher levels could cap gains.
- Nifty is expected to trade within 24,800–25,100. A sustained move above 25,100 may open the door to 25,300–25,400, while a fall below 24,800 could trigger a correction toward 24,600.
- Bank Nifty is likely to remain range‑bound; an up‑move may resume only if it crosses 55,700 decisively.
- Traders should keep an eye on developments around U.S.–China trade policy, domestic macro announcements (GDP growth, GST reforms) and corporate earnings releases.
