Nifty Holds Above 25,000 after Volatile Expiry Session
The Indian markets closed higher for the sixth consecutive day, with the Nifty ending at 25,083 and the Sensex at 82,000, despite a choppy expiry session on August 21. The markets saw a mixed bag of performances, with pharma stocks leading the gains, while FMCG, autos, and consumer durables slipped. IDBI Bank surged 8% on news of progress in its stake sale, while BSE and Angel One tumbled.
The markets had a volatile day, with the Nifty oscillating between gains and losses throughout the session. The index opened higher, but soon gave up its gains, falling as much as 100 points. However, it recovered sharply in the afternoon to end the day higher by 23 points.
The pharma sector was the biggest gainer, with stocks like Cipla, Sun Pharma, and Dr. Reddy’s Laboratories rising between 1-3%. The sector was boosted by news of a possible breakthrough in the development of a vaccine against COVID-19. The news sent shockwaves through the markets, leading to a rally in healthcare stocks.
On the other hand, FMCG, autos, and consumer durables stocks slipped, with companies like ITC, Hindustan Unilever, and Maruti Suzuki falling between 1-2%. The decline in these sectors was attributed to profit-taking and a lack of significant positive news.
IDBI Bank was the biggest gainer on the day, surging 8% on news of progress in its stake sale. The bank has been looking to sell its stake in its life insurance arm, IDBI Federal Life Insurance, and the news of the deal being completed boosted investor sentiment.
BSE and Angel One, on the other hand, tumbled, falling by 3-4% each. The decline was attributed to a lack of significant positive news and profit-taking by investors.
The retail sentiment remained bullish, with investors staying optimistic about the markets. The GST reform talks lifted investor mood, with many believing that the reforms will boost economic growth and lead to higher corporate profits.
“The GST reforms will definitely boost economic growth and lead to higher corporate profits,” said Rakesh Jain, a retail investor. “I’m bullish on the markets and expect them to continue their upward trend.”
The markets are expected to remain volatile in the coming days, with investors keeping a close eye on global events and domestic macroeconomic indicators. The RBI’s monetary policy decision, scheduled for August 27, will be closely watched, with many expecting a rate cut.
“Investors are expecting a rate cut from the RBI, which will boost the markets,” said Jain. “The markets are already at record highs, and a rate cut will only add to the momentum.”
The Nifty is expected to face resistance at the 25,200 level, while support is seen at 24,900. The Sensex is expected to face resistance at 82,500, while support is seen at 81,500.
In conclusion, the Indian markets closed higher for the sixth consecutive day, with the Nifty ending at 25,083 and the Sensex at 82,000. The markets saw a mixed bag of performances, with pharma stocks leading the gains, while FMCG, autos, and consumer durables slipped. IDBI Bank surged 8% on news of progress in its stake sale, while BSE and Angel One tumbled. The retail sentiment remained bullish, with investors staying optimistic about the markets.
Source: https://stocktwits.com/news-articles/markets/equity/nifty-sensex-end-flat-august-21/chsSspvRdiG
