Sensex settles 140 pts higher, Nifty above 25,050: Buying in RIL, bank stocks among key factors behind market gain

1) Buying in RIL, bank stocks: Reliance Industries saw strong buying interest, while banking counters also moved higher. The Bank Nifty was up 0.35 percent with 9 of its 12 constituents trading in the green.

"An interesting trend in the market is the steady up move in India in contrast to the down trend in the US. While concerns of potential rising inflation in the US is weighing on the market there, the bold reform initiatives in India and the sustained money flows into the market are imparting resilience to the market," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

2) Positive global cues: Asian markets were mostly higher, with South Korea’s Kospi and Shanghai Composite index in the positive zone, supporting sentiment in domestic equities.

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3) Fed signals awaited: Investors are tracking US Federal Reserve Chair Jerome Powell’s comments at the Jackson Hole Symposium for clarity on the future rate trajectory.

4) Rupee gains: The rupee appreciated 14 paise to 86.93 against the US dollar, aided by strong domestic equities and improved risk appetite. Traders said optimism on global risk sentiment and geopolitical cues supported the local unit.

5) India VIX decline: The volatility index slipped 1.3 percent to 11.63, indicating lower near-term market uncertainty and aiding investor sentiment.

Nifty outlook

Anand James, Chief Market Strategist at Geojit Financial Services, said, "Yesterday’s upswings fizzled out near 25,096, the first upside objective. With Nifty near the upper Bollinger band, consolidation is likely. While a collapse is less probable, dips towards 25,000–24,977 may be expected before another upswing attempt towards 25,156–25,200."

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