Sensex up 150 pts, Nifty above 25,000 as FMCG, IT stocks surge; small, midcaps rise for 3rd day

The broader market participation has kept the undertone positive, and analysts expect the index to remain strong.

Nifty and Sensex staged a smart comeback in mid-day trade on Wednesday, August 20, as buying in FMCG, IT, and metal counters lifted sentiment. The rebound kept the market’s winning streak alive, setting the stage for what could be a fifth straight day of gains if the momentum holds.

At about 11:55 am, the Sensex was up 136.41 points or 0.17 percent at 81,780.80, and the Nifty was up 36.15 points or 0.14 percent at 25,016.80. About 2,150 shares advanced, 1,343 shares declined, and 137 shares were unchanged.

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"Indian markets posted modest gains, building on the previous session's momentum as investors anticipated that recent GST reforms could help curb inflation and prompt additional rate cuts from the Reserve Bank of India. Market sentiment is receiving further support from renewed diplomatic initiatives to resolve the Ukraine conflict and improve Sino-Indian relations amid global uncertainties," Devarsh Vakil, Head of Prime Research at HDFC Securities, said.

At mid-day, trade was mixed across NSE sectoral indices. IT led the gains with a 1.6 percent rise, followed by FMCG up nearly 1 percent and Metal up 0.6 percent. Energy, Infra, Realty, Consumer Durables, and Midcap indices also traded in the green with modest gains. On the other hand, Banking stocks were under pressure with the Nifty Bank, Private Bank and PSU Bank indices trading flat to lower. Pharma and Media were also in the red, while Auto was unchanged. The India VIX rose 0.9 percent to 11.9.

One 97 Communications, the parent company of Paytm, rose by one percent to hit a fresh 52-week high of Rs 1,238 apiece on August 20 after Motilal Oswal Mutual Fund crossed the 5 percent shareholding mark. The fund house bought an additional 26.31 lakh shares, which is equal to 0.41 percent of the company’s total equity, through open market deals on August 11, 2024. The total equity capital now stands at 5.15 percent.

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Aurobindo Pharma shares fell over 4 percent after reports suggested that the company has emerged as the front-runner to acquire Prague-based generic drugmaker Zentiva for $5-5.5 billion (Rs 43,500-47,900 crore) from Advent International. If this deal goes through, it will be the largest-ever acquisition by an Indian pharmaceutical company, both domestically and internationally.

Nazara Technologies shares came under fire, sinking over 6 percent, as the new draft online gaming bill received the Union Cabinet's nod. The bill aims to prohibit all pay-to-play online games, including both games of skill and chance, halting operations of regulated real-money gaming (RMG) platforms across India.

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Technical View

"Nifty regained momentum after two days of gains, bouncing back from a close above the 50-EMA mark of 24,800 and once again testing the 25,000 level. The broader market participation has kept the undertone positive, and analysts expect the index to remain strong. A decisive break above 25,100 could open the way for higher targets at 25,200 and 25,300 in the coming sessions," Vaishali Parekh of Prabhudas Lilladher said.

"While the Nifty Bank index has managed to sustain higher levels, private sector banks are yet to exhibit decisive strength, leading to choppy momentum. The immediate roadblock remains at 56,000–56,100, and only a breakout above this zone would unleash strong bullish momentum through short-covering activity," Dhupesh Dhameja of SAMCO Securities said.

Infosys, Eternal, HUL, TCS, and NTPC were the top gainers on the Nifty. Laggards on the index included Shriram Finance, Bajaj Finance, Bharat Electronics, Tata Motors, and Hindalco.