Sensex Gains 612 Points, Nifty Crosses 25,000; Metal and IT Stocks Lead the Rally

Benchmark indices Nifty and Sensex ended the day on a strong note on August 26, driven by gains in metal and IT stocks. The upbeat sentiment followed the US Fed’s indication of a potential interest rate cut in the near future.

• Sensex: Up 631.90 points or 0.78%, closing at 81,718.11.
• Nifty: Up 187.40 points or 0.75%, finishing at 25,010.60.
• Market Breadth: 2,075 shares advanced, 1,791 shares declined, and 138 shares remained unchanged.

Sectoral Performance: Metal and IT Stocks Drive Gains

• Nifty Metal: Top sectoral gainer, up over 2%, led by Hindalco, Vedanta, JSW Steel, and Tata Steel.
• Nifty IT: Also posted strong gains with Tech Mahindra, TCS, and Wipro leading the charge.
• Nifty Energy: Increased by just over 1%, supported by Reliance Industries, NTPC, ONGC, and Power Grid Corp.
• PSU Banks: Underperformed the broader market, with muted gains.

Key Market Drivers: ONGC and Fed Commentary Boost Sentiment

ONGC was a standout performer, closing nearly 3% higher after announcing the commencement of gas transportation and sales from its offshore site. The Fed’s commentary on potential policy adjustments and an upcoming rate cut further fueled market optimism.

Broader Market: Midcap and Smallcap Indices Lag Behind

• BSE Midcap Index: Up 0.6%, underperforming the benchmark indices.
• BSE Smallcap Index: Increased by 0.2%, reflecting a more subdued performance.

Analyst Insight: Cautious Optimism Amid Global Uncertainties

V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the Fed’s signal for a rate-cutting cycle will reinforce the ongoing global stock market rally. However, he also warned of potential risks from escalating Israel-Hezbollah tensions.

Top Gainers and Losers

• Top Gainers: Hindalco, NTPC, HCL Technologies, Bajaj Finserv, ONGC.
• Top Losers: Apollo Hospitals, Hero MotoCorp, Adani Ports, Eicher Motors, Nestle India.