Sensex, Nifty extend gains to second day as volatility eases; Sugar stocks sweeten trade

Markets Stay in Green: Nifty holds above 24,650; sugar stocks sweeten trade

Indian benchmark indices Sensex and Nifty extended gains for the second consecutive session on September 2, supported by broad-based buying and easing volatility. The India VIX slipped another 2 percent, signaling continued market stability and absence of near-term panic.

Around morning, the Sensex was up 124.87 points or 0.16 percent at 80,489.36, while the Nifty gained 35.95 points or 0.15 percent to trade at 24,661.00. Market breadth favored the bulls, with 1,748 shares advancing, 672 declining, and 133 remaining unchanged.

Sector-wise performance was mixed—Bank Nifty underperformed against the benchmarks, while auto stocks cooled off after Monday’s surge driven by August sales numbers. The Nifty IT index also eased from yesterday’s rally, with declines seen in heavyweights like Infosys, Tech Mahindra, and HCL Tech.

Broader markets stayed in the green, with midcaps outperforming smallcaps in early trade.

Among index heavyweights, Reliance Industries led the gains on the Nifty 50, rising over 1 percent after Morgan Stanley said the conglomerate stands to be the biggest beneficiary of China’s anti-involution policies, which aim to restructure energy and solar supply chains—potentially creating new business opportunities for RIL.

In sector-specific action, sugar stocks surged up to 12 percent after the government removed curbs on ethanol production from sugarcane and sugar syrup. This move is part of India’s strategy to promote ethanol blending in fuel while ensuring adequate sugar availability for domestic consumption. Stocks like Balrampur Chini, Bajaj Hindusthan, Shree Renuka Sugars, and Dhampur Sugar rallied sharply.

On the technical front, Mandar Bhojane, Senior Technical & Derivative Analyst at Choice Broking, noted that the market is displaying early signs of a bullish reversal, but confirmation is awaited. “Until then, traders should adopt a buy-on-dips strategy in quality names and focus on stock-specific plays for better risk-adjusted returns,” he advised.

“On the upside, resistance is placed at 24,700, followed by 24,800–25,000. A decisive move beyond this zone could trigger fresh buying,” Bhojane added.