Sensex, Nifty gain for 6th straight session, led by pharma, oil & gas stocks; mid, smallcaps snap 3-day rally

India VIX eased nearly 4% on Thursday

Benchmark indices Nifty and Sensex stretched their winning run to a sixth straight session on Thursday, August 21, lifted by pharma, oil & gas and banking stocks. The midcap and smallcap index, however, broke their three-day rally to end lower, while weakness in autos, FMCG and PSU banks also capped the upside.

At close, the Sensex was up 142.87 points or 0.17 percent at 82,000.71, and the Nifty was up 33.20 points or 0.13 percent at 25,083.75. About 2025 shares advanced, 1886 shares declined, and 145 shares remained unchanged.

Also read: GoM approves Centre's GST rate rationalisation proposal, backing the proposed two-slab structure

Sectoral indices traded mixed. Pharma was the top gainer, up nearly 1 percent, followed by oil & gas, realty, private banks, infra and IT, all posting modest gains. Metals and media were also marginally higher. On the flip side, FMCG, energy, auto, consumer durables, PSU banks and midcaps were in the red. The India VIX slipped over 3 percent to 11.37, reflecting subdued volatility.

Bombay Stock Exchange (BSE) and Angel One fell as much as 5 percent on Thursday, August 21, after Tuhin Kanta Pandey, Chairman of market regulator Securities and Exchange Board of India (SEBI) made new statements with regards to the tenure of equity derivatives. Speaking at the FICCI Annual Capital Market Conference, Pandey said that there is a need to increase the tenure of equity derivatives.

Trouble continued for Nazara Technologies' stock, which tumbled another 8 percent, after the Lok Sabha passed the Promotion and Regulation of Online Gaming Bill, 2025. The bill aims to prohibit all pay-to-play online games, including both games of skill and chance. If passed, the bill would pause the total operations of regulated real-money gaming (RMG) platforms across India.

Shares of Ola Electric Mobility tumbled more than 8 percent on August 21 following a massive 30 percent rise over two sessions, after the latest data from VAHAN portal showed rival electric two-wheeler maker Ather Energy nudging ahead on total monthly registrations so far in August, likely prompting some investors to book profits. According to the VAHAN portal, Ola Electric recorded 9,681 registrations in August so far, lower than the 10,283 registrations recorded by rival EV player Ather Energy.

Read more: Need to increase tenure of equity derivatives in consultation with stakeholders: Sebi's Tuhin Kanta Pandey

Technical View

Yesterday’s rally lost steam as the Nifty stalled near 25,096, the initial upside target set for the session. The index is now hovering close to the upper Bollinger Band, a technical signal that suggests consolidation could be on the cards. This makes the path toward the higher objectives of 25,156–25,200 less certain in the near term. While a sharp collapse looks unlikely, traders may need to brace for dips toward 25,000–24,977 or even lower before the market attempts another leg higher. Such pullbacks, if they occur, could offer a healthier base for the next upswing.

Cipla, Dr Reddy's, ICICI Bank, Bajaj Finserv, and SBI Life Insurance were the top gainers on the Nifty. Laggards on the index were Bajaj Auto, Coal India, Tata Consumer Products, Power Grid Corp, Eternal, and IndusInd Bank.