BIZ DESK
Indian equities closed with notable gains today, riding a global wave of optimism sparked by Federal Reserve Chair Jerome Powell’s comments. Speaking at the Jackson Hole summit, Powell hinted at the possibility of a rate cut, citing a softening jobs market, which led to a broad-based rally in global stocks. However, he also underscored the persistent threat of inflation, potentially stoked by President Donald Trump’s new tariffs.
Market Snapshot
- BSE Sensex climbed 329.06 points (0.40%) to finish at 81,635.91.
- NSE Nifty50 added 97.65 points (0.39%) to close at 24,967.75.
Sectoral and Stock Performance
The Nifty IT index led the charge, surging an impressive 2.37% as investors flocked to technology stocks on the back of the favorable US rate outlook. Other top-performing sectors included Realty (0.75%) and Metal (0.65%). The market breadth was largely positive, with advances outpacing declines.
On the BSE, major IT players like Infosys, TCS, Tech M, and HCLTech were among the top gainers, underscoring the tech sector’s strength. Conversely, stocks like BEL, Asian Paints, Bharti Airtel, and ICICI Bank were among the day’s laggards.
Broader Market and Key Developments
In the broader markets, the Nifty MidCap 100 gained 0.12%, while the SmallCap index saw a slight dip of 0.04%.
Adding to the positive sentiment, Fitch Ratings affirmed India’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BBB-‘ with a Stable Outlook, citing a resilient economy despite global headwinds.
Meanwhile, at the FIBAC 2025 event, RBI Governor Sanjay Malhotra declared that India is on track to become the world’s third-largest economy. He urged the nation to “push the frontiers of truth” and “invest boldly” as it navigates a complex global landscape marked by trade uncertainty and geopolitical tensions.
Sectoral Trends
- IT:
IT majors led the rally, with Infosys, TCS, and Wipro posting strong gains amid expectations of improving global demand and better margins. The sector benefited from easing dollar strength and upbeat commentary from global peers. - Banking & Financials:
Banking shares traded mixed. Private banks witnessed selective buying, while PSU banks faced pressure from profit-booking after recent gains. NBFCs remained steady as softening bond yields supported sentiment. - Auto:
Auto stocks slipped marginally on concerns of higher inventory levels, though two-wheeler makers found some support from festive demand expectations and forecasts of a strong monsoon aiding rural sales. - FMCG:
FMCG stocks remained range-bound. Analysts said that optimism over GST rationalisation and rural demand revival may support the sector in coming weeks. - Energy & Oil & Gas:
Energy shares traded flat as investors weighed declining crude oil prices against subdued refining margins. ONGC and Reliance saw muted moves despite global softness in oil benchmarks. - Metals & Realty:
Metals were weak on concerns over slowing Chinese demand. Realty stocks also saw profit-taking after last week’s rally, with investors turning cautious ahead of key project launches.
Market Drivers
- Fed Signals: Comments hinting at a likely September rate cut by the U.S. Federal Reserve lifted sentiment across global markets.
- Domestic Tailwinds: GST rationalisation proposals and prospects of a strong monsoon were viewed as positives for consumption-linked sectors.
- Flows: Continued foreign portfolio inflows and lower crude oil prices provided a supportive backdrop, though caution persisted in mid- and small-cap counters.
