Sensex up 250 pts, Nifty above 25,100 as real estate, oil & gas, pharma stocks shine; VIX eases 2%

Nifty is trading comfortably above all key moving averages, confirming a firm underlying trend.

Benchmark indices Nifty and Sensex strengthened through mid-day trade on August 21, lifted by strong gains in pharma, oil & gas and banking stocks, while fresh buying in IT counters added to the momentum after a sluggish start.

At about 12:05 pm, the Sensex was up 245.44 points or 0.30 percent at 82,103.28, and the Nifty was up 62.35 points or 0.25 percent at 25,112.90. About 2172 shares advanced, 1347 shares declined, and 123 shares remained unchanged.

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"A striking divergence has emerged between India and the U.S. markets. While worries over sticky inflation are dragging Wall Street lower, Indian equities continue to hold firm, supported by bold reform measures and steady fund inflows. Softer retail inflation at 1.55 percent in July has also raised hopes of another rate cut by the MPC, though the RBI remains cautious amid global uncertainty," V K Vijayakumar of Geojit Investments Ltd said.

He added that valuations, however, remain a key concern. Large-cap valuations appear justified by India’s long-term growth story, and midcaps are backed by healthy earnings momentum. But smallcaps look stretched, making them the riskiest segment of the market.

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At mid-day, sectoral trends on the NSE were mixed. Realty led the pack with a 1.1 percent gain, followed by pharma, up 0.9 percent, and oil & gas, which rose 0.6 percent. The smallcap and midcap indices also outperformed, advancing 0.7 percent and 0.3 percent, respectively. Among other gainers, metals added 0.4 percent, infrastructure 0.4 percent, IT 0.3 percent, and banking stocks posted modest gains, with the Nifty Bank and private bank indices higher by 0.3 percent each. On the flip side, FMCG slipped 0.6 percent, while auto was flat, down 0.1 percent.

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.

Bajaj Finserv rose 2 percent after global brokerage Jefferies initiated coverage with 'Buy' call and gave a target of Rs 2,420 per share. The target implies up to 22 percent upside potential from the current market price. Bajaj Finserv to benefit from lower rates, stronger BALIC (Bajaj Allianz Life Insurance Company Limited) profits and BAGIC (Bajaj Allianz General Insurance Company Limited) growth, Jefferies said.

Insurance players saw some cheer in trade on Thursday, August 21, after reports suggested that life and health insurance purchased by individuals may be exempt from the 18 percent Goods and Services Tax (GST) that is currently levied. The GST Group of Ministers (GoM) on insurance has proposed that health and life insurance premiums be exempted from the levy, in a move aimed at making insurance products more affordable and improving penetration in India’s underinsured market.

Read more: Clean Science stock sees heavy volumes following 'punching error' during block trade

Technical View

"A strong bullish candlestick on the daily chart signals renewed strength and momentum. The index is trading comfortably above all key moving averages, confirming a firm underlying trend. Immediate support lies at 25,000 and 24,800, while resistance is placed at 25,100 and 25,200," Amruta Shinde of Choice Equity Broking said.

"The Bank Nifty, on the other hand, opened with a gap-down and traded sideways. Although it attempted a recovery, it ended slightly below the 55,700 mark. On the daily chart, the index formed a small bearish candlestick with wicks on both sides, reflecting indecision and selling pressure at higher levels. It continues to trade below its short- and medium-term EMAs, highlighting persistent weakness. Key supports are placed at 55,500 and 55,300, while resistance lies at 55,800, with the next hurdle around 56,000–56,200," she added.

Dr Reddy's, Cipla, Reliance Industries, Larsen & Toubro, and Bajaj Finserv were the top gainers on the Nifty. Laggards on the index included Tata Consumer Products, Coal India, Power Grid Corp, Bajaj Auto, and Jio Financial Services.

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