Stock markets subdued: Nifty nearing 24,900, Sensex drops 105 points; Nazara Tech, Delta Corp decline 4% each
The Indian equity market experienced a positive rally on August 20, 2025, with the Nifty 50 closing above 25,000 at 25,050 and the Sensex at 81,857.
The market was influenced by strong buying in the technology and FMCG sectors, as well as optimism driven by improving retail investor sentiment moving from neutral to bullish. This optimism was supported by broad outperformance in midcap and smallcap indices.
However, the rally was not without concerns, as there were some issues in the financials and pharma sectors. Additionally, hotel companies saw notable buying interest, while specific stocks faced pressure due to government policy proposals.
The market dynamics were shaped by both domestic reforms and global trade uncertainties, particularly regarding US tariffs on Indian exports.
Key laggards in the Nifty 50 in early trade included Jio Financial Services, Tata Motors, HCL Technologies, Bajaj Finance, and Shriram Finance. On the other hand, Bharti Airtel, NTPC, Infosys, HDFC Life Insurance, and Zomato (Eternal) were top gainers.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, stated that as long as the market trades above 24,850, the uptrend wave is likely to continue higher, possibly extending towards 25,150-25,250 above 25,050. Below 24,850, the uptrend may weaken and fall to 24,750-24,650 levels, where it has the next leg of big support.
Vijayakumar, Chief Investment Strategist at Geojit Investments, stated that the three-day 364-point rally in the Nifty was in response to the potential demand boost to sectors like automobiles, FMCG, insurance, and select financials due to GST rationalisation. He also mentioned that improvement in India-China relations contributed to the rally, but there is no scope for a sustained rally since the August 27th deadline for the 25% secondary tariff on India is fast approaching.
Meanwhile, Asian markets opened weak on Wednesday, and the S&P 500 slipped 0.59% on Wednesday. The Nasdaq Composite tumbled 1.46% on Wednesday.
Sources:
- India Inc. Watch
- Business Standard
- Economic Times
- Moneycontrol
- Financial Express
- CNBC TV18
- Zee Business
- NDTV Profit
- BloombergQuint
- Livemint
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