Closing Bell: Sensex ends 600 pts higher, Nifty near 24,650; Auto, IT, metals shine

"Markets began the week on a positive note, supported by upbeat Q1 GDP data. After an initial uptick, the Nifty traded in a range during the first half; however, renewed buying in select heavyweights pushed the index higher as the session progressed. Eventually, it gained around 0.8%, retesting the hurdle of its medium-term moving average near the 24,625.05 level. Strength in auto, energy and IT stocks led the rebound, while both mid- and small-cap indices outperformed with gains of 1.7%–2.0%.

The setup now favors consolidation in the benchmark after the recent decline, though underlying concerns remain. Despite India’s robust real GDP growth, persistent foreign fund outflows and export-related challenges amid tariff headwinds could keep participants cautious. In this backdrop, we recommend focusing on sectors and themes showing relative strength—such as auto, FMCG, and consumer durables, particularly consumer-facing segments—for long trades, while staying selective in others."

The Indian rupee began the month on a steady note, supported by stronger-than-expected growth data and a weaker US dollar. Gains in the rupee were also aided by a rebound in domestic stock markets. Looking ahead, the USD/INR is expected to trade in a narrow range, likely between 88.35 and 87.90.

India’s Q1 GDP growth of 7.8%, exceeding projections, has reinforced investor confidence in the economy’s resilience amid global uncertainties. Expectations of GST rationalisation at the upcoming council meeting continue to bolster sentiment, supporting discretionary consumption. This optimism is particularly benefiting sectors such as Auto and Consumer Durables. However, the risk of a potential revenue shortfall from proposed GST slab adjustments has heightened concerns over increased government borrowing, pushing domestic bond yields higher. Additionally, the impact of recently imposed tariffs is expected to become more evident from Q2 onwards, with markets awaiting greater clarity on their wider economic implications, which will be pivotal in determining near-term market trends.

At close, the Sensex was up 568.09 points or 0.71 percent at 80,377.74, and the Nifty was up 198.25 points or 0.81 percent at 24,625.10. About 2681 shares advanced, 1,320 shares declined, and 173 shares were unchanged.

• The expansion, to be completed by FY27, includes a new mill at Arasmeta and upgrades at Jojobera, Panagarh and Odisha plants.
• Eastern capacity will rise from 19 MTPA to 23 MTPA, over 20% higher.
• The move supports premiumisation and blended cement focus, with cost benefits.
• Logistics upgrades include a clinker loader at Sonadih and a railway siding in Odisha.

• The rise ended a six-day losing streak.
• The stock is still 65% below its December 2024 peak of Rs 698.30.
• Trading volume surged to 2.2 crore shares versus a 20-day average of 7 lakh.
• The company posted a Q1 FY26 loss of Rs 41.9 crore.
• Loss widened from Rs 6.6 crore a year earlier.
• Revenue fell 20.7% year-on-year to Rs 271 crore.

• Gains came after the SCO summit in China and GST reform hopes.
• PM Modi met Chinese President Xi Jinping over the weekend.
• Indian EV makers have been hit by curbs on rare earth magnets since April.
• China has begun easing export restrictions, raising hopes for better supplies.

The Sensex was up 263.60 points or 0.33 percent at 80,073.25, and the Nifty was up 96.80 points or 0.40 percent at 24,523.65. About 2430 shares advanced, 1180 shares declined, and 174 shares unchanged.

At 11:03 hrs IST, the Sensex was up 362.80 points or 0.45 percent at 80,172.45, and the Nifty was up 123.70 points or 0.51 percent at 24,550.55. About 2537 shares advanced, 1012 shares declined, and 153 shares unchanged.

HSBC India’s Manufacturing Purchasing Managers’ Index (PMI) rose to 59.3 in August, the highest level since February 2008, compared with 59.1 in July.

Shares of Ola Electric Mobility rallied as much as 7.33 percent to Rs 58.01 apiece in Monday’s session, extending a sharp uptrend. The stock has gained nearly 20 percent over the past five trading days.

The rally comes after the company announced that it has received Production Linked Incentive (PLI) certification for its Gen 3 scooter lineup. Ola said the approval is expected to improve margins and profitability beginning this quarter, boosting investor sentiment around the stock.

Shares of Adani Power and Torrent Power rose after the companies secured projects worth $3.7 billion from Madhya Pradesh to construct ultra supercritical thermal power plants.

Indian markets opened on a firm note in early trade. The benchmark Sensex rose 0.42 percent, or 333 points, to 80,144, while the Nifty 50 gained 0.35 percent, or 87 points, to 24,520.

Oil prices traded in a tight range on Monday as worries about rising output and the impact of U.S. tariffs on demand offset supply disruptions stemming from intensified Russia-Ukraine airstrikes.

Brent crude fell 12 cents, or 0.18%, to $67.36 a barrel by 0046 GMT, while U.S. West Texas Intermediate crude was at $63.88 a barrel, down 13 cents, or 0.2%. Trading is expected to be muted due to a U.S. bank holiday.

#1 Asian markets fall as investors assess US court ruling on Trump tariffs

#2 GIFT Nifty signals mildly higher start

#3 US futures edge higher after August gains

#4 US Fed appeals court rules most of Trump’s Tariffs as ‘Illegal’

#5 Trump to seek Supreme Court’s help in order to reverse decision

#6 Chinese president Xi Jinping to deliver speech at SCO summit

#7 US July core PCE Price index MoM at 0.3% vs estimate of 0.2%

#8 US core PCE increased 2.9% in July, highest since February

#9 Wall Street ended lower on Friday after US PCE data

#10 S&P 500 scores 4th winning month in a row

#11 Wall Street shut tonight on account of Labor Day holiday

#12 U.S. 10-year yield rises 2 bps to 4.23%

#13 Dollar index loses ground on Fed rate cut bets

#14 Gold logs best month in four; oil prices edge lower

The dollar was adrift on Monday as markets looked ahead to a raft of U.S. labour market data this week that could determine the size of the Federal Reserve's expected rate cut later this month.

Traders were also still assessing Friday's U.S. inflation data and a court ruling that most of Donald Trump's tariffs are illegal, as well as the U.S. president's ongoing tussle with the Fed over his attempt to fire Governor Lisa Cook.

The dollar rose 0.1% against the yen to 147.20 in the early Asian session, after having clocked a monthly decline of 2.5% against the Japanese currency on Friday.

The euro was up 0.1% to $1.1693, while sterling edged 0.05% higher to $1.3510. U.S. markets are closed for a holiday on Monday.

Asian shares started the new month in the red on Monday after a court ruling threw another wrench into U.S. tariff policy and investors braced for a reading on U.S. jobs that could determine the course of rate cuts there.

Trends on GIFT Nifty indicate a positive start for the broader index in India, with a gain of 47 points or 0.9 percent. The Nifty futures were trading around 24,600 level.

The S&P 500 ended down from record highs on Friday, with losses in Dell, Nvidia and other AI-related stocks, while investors parsed inflation data showing tariffs have started feeding into prices.

The S&P 500 declined 0.64% to end the session at 6,460.26 points a day after notching a record-high close.

The Nasdaq declined 1.15% to 21,455.55 points, while the Dow Jones Industrial Average declined 0.20% to 45,544.88 points.

The Indian equity market ended lower in the rangebound session on August 29 with Nifty at around 24,400 and Sensex settled below 80,000 mark. Despite a negative start, the market traded in a positive territory for the most part of the session but amid final hour selling pressure, the indices ended near day's low.

At close, the Sensex was down 270.92 points or 0.34 percent at 79,809.65, and the Nifty was down 74.05 points or 0.30 percent at 24,426.85. BSE Midcap index shed 0.4 percent and smallcap index down 0.3 percent.

Shriram Finance, ITC, Bharat Electronics, Trent, Asian Paints were among top gainers on the Nifty, while losers were M&M, Infosys, Apollo Hospitals, Adani Enterprises, Reliance Industries.

On the sectoral front, metal, IT, realty, auto shed 0.5-1%, while Capital Goods, Consumer Durables, media, FMCG index rose 0.2-1%.

“Rule #1: Don’t lose money. Rule #2: Don’t forget Rule #1.” – Warren Buffett