IT, Metals, and Realty Lead Gains
MUMBAI: Benchmark indices BSE Sensex and NSE Nifty closed Monday, August 26, on a positive note, marking a strong start to the week.
The Sensex gained 612 points, or 0.75 per cent, to settle at 81,698.11, while the Nifty 50 rose by 187.46 points, or 0.76 per cent, to end at 25,010.60.
The trading session favored the bulls, with 33 out of 50 stocks on the Nifty 50 closing higher.
Leading the gains were HCL Tech, Hindalco, NTPC, ONGC, and Bajaj Finserv, with increases of up to 4.24 per cent.
Similarly, 21 of the 30 Sensex constituents ended the day in the green, with HCL Tech, NTPC, and Bajaj Finserv leading the pack with gains of up to 4 per cent.
Broader indices also posted gains, with the Nifty Midcap 100 rising by 0.64 per cent. Sector-wise, IT, Metals, Realty, and Oil Marketing Companies (OMCs) were the top performers, registering gains of up to 2.16 per cent.
Nifty remained strong
Market analysts noted that the Nifty remained strong throughout the day. On the daily chart, a visible green candle formed after two consecutive minor red candles, indicating improving market sentiment. However, resistance is evident at the 25,080 level, and a decisive move above this could push the index towards 25,300. Conversely, a failure to break this level might trigger selling, potentially bringing the index back towards 24,800.
Analysts also observed that signals from the US Federal Reserve, hinting at a possible rate cut in September, have been reflected in declining US treasury yields and the dollar index. This has contributed to a global market rally, despite uncertainty about the size of the potential rate cuts.
Indian markets hit new highs, driven by a shift in Foreign Institutional Investors (FIIs) sentiment from negative to positive, coupled with continued strong inflows from Domestic Institutional Investors (DIIs). Large-cap stocks outperformed, bolstered by healthy earnings and relatively attractive valuations compared to broader market indices.
Among the sectors, IT, Realty, FMCG, and Consumption saw gains due to an improved outlook.
Paytm shares fall
In contrast to the broader market trend, shares of One 97 Communications (Paytm) faced significant pressure, plunging 8.88% to Rs 505.25 during the day before recovering slightly to close at Rs 530.95, down 4.25% on the BSE. The sharp decline followed reports that the company’s founder, Vijay Shekhar Sharma, had been served a show-cause notice by the Securities and Exchange Board of India (SEBI).
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