Sensex up 500 pts, Nifty at 25,000 as auto, oil & gas stocks rally; RIL up over 2%

If the momentum holds, the market is on track to notch up a fourth straight day of gains.

Benchmark indices Nifty and Sensex powered ahead in afternoon trade on August 19, with all sectors flashing green and volatility edging lower. Mid- and small-cap stocks outshone the frontline peers, extending their winning streak, and if the momentum holds, the market is on track to notch up a fourth straight day of gains.

At about 12:40 pm, the Sensex was up 462.90 points or 0.57 percent at 81,736.65, and the Nifty was up 123.55 points or 0.50 percent at 25,000.50. About 2287 shares advanced, 1265 shares declined, and 113 shares remained unchanged.

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At midday on August 19, Indian markets were trading higher with broad-based gains across sectors. The Nifty Auto index led the charge, rising 1.2 percent, while Nifty Oil & Gas advanced 1.3 percent and Nifty Infra gained 0.7 percent. Media, energy, metals and IT also added between 0.3 and 1 percent. Among financials, Nifty Bank inched up 0.3 percent, supported by gains of 0.5 percent in PSU banks and 0.4 percent in private banks. FMCG and consumer durables traded marginally in the green. Realty and mid- and small-cap indices also moved higher. Meanwhile, India VIX fell 3.7 percent, reflecting easing volatility.

Auto stocks were the bright sparks in today's session and rallied up to 6 percent after fresh signals out of New Delhi. According to CNBC TV-18, China’s foreign minister, currently in India for meetings, has assured that Beijing will address key concerns flagged by New Delhi, including the supply of rare earth magnets — a critical input for automakers — and tunnel boring machines. Ola Electric and Tata Motors were the top gainers.

Also read: Centre moving quickly on deregulation norms to enhance ease of business for India Inc

Reliance Industries shares rose more than 2 percent in Tuesday’s trade after its Jio telecom unit announced changes in its prepaid tariffs. The gains were supported by upbeat brokerage commentary. Reliance Jio has discontinued its entry-level 1GB per day prepaid packs priced at Rs 209 for 22 days and Rs 249 for 28 days. Brokerage IIFL said the Rs 249 pack contributed less than 10 percent to Jio’s mobile revenues, and the 20 percent hike could directly lift overall revenue by under 2 percent. Axis Capital, however, expects the tariff changes to boost Jio’s FY26E revenue.

Shares of Inox Wind rose as much as 6 percent after the company said it had divested a stake worth about Rs 175 crore in its subsidiary Inox Renewable Solutions Ltd. (IRSL). The company disclosed in a regulatory filing that it has signed agreements, last executed on August 18, to sell 49.6 lakh equity shares of IRSL, each with a face value of Rs 10. The transaction values the subsidiary at around Rs 7,400 crore, with the sale expected to be completed within the next seven days.

Read more: Vardhman Textiles, Ambika Cotton Mills & other cotton stocks rally as Centre scraps import duty

Technical View

"The near-term outlook for the market remains positive, with traders advised to adopt a buy-on-dips, sell-on-rallies approach. For the Nifty, support is placed at 24,750–24,700, with a stop loss at 24,600. On the upside, resistance is seen at 25,000 and 25,100," Shrikant Chouhan, Head Equity Research at Kotak Securities, said. "For the Bank Nifty, support lies in the 55,500–55,350 zone. Buying opportunities are expected near 55,350 with a stop loss at 55,000, while resistance levels are pegged at 55,850 and 56,100," he added.

Tata Motors, Reliance Industries, Adani Ports, Bajaj Auto, and Adani Enterprises were the top gainers on the Nifty. Laggards on the index included Grasim, Bajaj Finserv, Hindalco, Power Grid Corp, and Bajaj Finance.

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