Sensex rises 200 pts, Nifty nears 24,950 as Powell’s Jackson Hole speech fuels September rate cut hopes

TCS, Tech Mahindra, Bajaj Finance, NTPC and Hindalco were the top gainers on the Nifty.

Benchmark indices Nifty and Sensex were off to a flying start on Monday, August 25, after Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole Symposium suggested a rate cut at the Fed’s September 16–17 meeting.

At about 9:25 am, the Sensex was up 211.98 points or 0.26 percent at 81,518.83, and the Nifty was up 57.50 points or 0.23 percent at 24,927.60. About 1810 shares advanced, 1144 shares declined, and 197 shares were unchanged.

"Powell did something that no one thought he would – he went ahead and signalled that the Fed is ready to cut interest rates at their next meeting. The bar is extremely high now for the Fed to leave rates unchanged in less than a month," said market expert Ajay Bagga. He added that investors should align allocations towards risk and rate-sensitive plays—quality cyclicals, duration, and select commodities—while keeping a close eye on upcoming jobs and inflation data.

"Fed chief Powell’s remark at Jackson Hole that ‘there is a downside risk to unemployment and shifting risk balance may warrant policy adjustment’ clearly indicates a rate cut in September. The US stock market gave a thumbs up to this comment, says V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd. "The positive factor may not get reflected in the Indian market as much since tariff concerns are likely to weigh more," he added.

Among individual movers, Mazagon Dock Shipbuilders Ltd surged 3 percent after CNBC-TV18 reported that the Ministry of Defence has cleared the company to start cost negotiations with Germany’s Thyssenkrupp Marine for building six submarines under the Rs 70,000-crore P-75(I) project. Talks are expected to begin shortly, with the contract likely to be awarded to Mazagon Dock and Thyssenkrupp around six months after successful negotiations, the report said.

Also read: Tax cuts, rating upgrade lift markets — but will FIIs return, and when?

Syrma SGS Technology Ltd was in the positive as the shareholder lock-in expired. According to Nuvama Alternative & Quantitative Research, 3.52 crore shares—about 20 percent of the company’s outstanding equity—became eligible for trade at the end of the one-and-a-half-year lock-in period.

On the technical front, Nifty is holding on to support near 24,800. A shooting star on the weekly chart, coupled with call writing at higher levels and unwinding of puts, suggests limited upside and prolonged consolidation. Unless the index clears 25,150, upside momentum is likely to remain capped, while holding above 24,800 is critical to avoid deeper cuts. For now, analysts advise a “sell on rise” strategy, with traders watching 25,000 on the upside and 24,800 on the downside for the next decisive move.

The Bank Nifty mirrors a similar setup. The index is clinging to support at 55,000 after giving up prior gains, with heightened call writing and put unwinding pointing to a fragile structure. "Holding above the 55,000 mark is critical to avoid deeper cuts, while any sustained move below it may open the door for further downside. On the upside, only a decisive reclaim above 56,150 would negate the weak bias. For now, the structure favours a ‘sell on rise’ strategy, with traders eyeing 55,000 as the key trigger zone for the next leg of directional momentum," said Dhupesh Dhameja of SAMCO Securities.

TCS, Tech Mahindra, Bajaj Finance, NTPC and Hindalco were the top gainers on the Nifty. Laggards on the index included ICICI Bank, SBI Life Insurance, Apollo Hospitals, Maruti Suzuki, and Jio Financial Services.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.