Indices gain momentum; auto and financial services lead

With 1,359 shares gaining and 1,139 shares declining on the NSE, the advance-decline ratio favoured advances.

Market Update at 11:25 AM: After a sluggish start in today's early trades, Indian benchmarks gained positive momentum, mirroring the trend in most Asian indices. At 11:25 am, the BSE Sensex gained 0.11 per cent reaching a level of 81,142. The Nifty 50 index added 0.14 per cent to the 24,846 level. 

Within the Nifty 50, Bajaj Auto, Tata Motors and Hero Motocorp were among the leading gainers, whereas LTI Mindtree, Wipro and Divi’s Laboratories were among the market draggers.

With 1,359 shares gaining and 1,139 shares declining on the NSE, the advance-decline ratio favoured advances.

In terms of sectoral performance, Nifty Auto and Nifty Financial Services were the best performers, while Nifty Realty, Nifty IT and Nifty Media experienced the most decline.

Market Update at 9:40 AM: Indian headline indices started today's trading session on a muted note, fluctuating between modest gains and losses in early trades.

At 9:40 am, the BSE Sensex fell 0.15 per cent reaching a level of 80,935. The Nifty 50 index declined 0.13 per cent to the 24,778 level. Within the Nifty 50, Bajaj Auto, Hero Motocorp and Tata Motors were among the leading gainers, whereas LTI Mindtree, Infosys and Wipro were among the market draggers.

Broader market sentiment was mixed, with the BSE Mid-Cap Index notably reporting losses, while the BSE Small-Cap Index posted a considerable gain of 0.20 per cent. With 1,172 shares rising on the NSE and 1,153 shares declining, the advance-decline ratio slightly remained in favour of advances.

In terms of sectoral performance, the Nifty Auto Index was the only one in the green today, while Nifty IT, Nifty Realty, and Nifty Consumer Durables experienced the steepest declines.

Pre-Market Update at 8:30 AM: The U.S. market experienced a significant pullback overnight, with tech shares taking the hardest hit due to weak investor sentiment driven by rising bond yields and anticipation of Powell’s outlook. The Nasdaq Composite Index plunged 1.67 per cent, the S&P 500 tumbled 0.89 per cent, and the Dow Jones Industrial Average fell 0.43 per cent. The dollar remained steady ahead of Powell's speech.

As expected, major Asian markets mirrored the overnight weakness in today's trades. Meanwhile, the GIFT Nifty was trading at a slight premium compared to the previous close of Nifty futures, indicating a modestly positive opening for Indian frontline indices.

Oil is set for a weekly loss after declining for a fifth consecutive session on Thursday, as investors grew concerned about the global demand outlook. This came despite a drop in U.S. fuel inventories, with worries fuelled by a challenging demand environment, falling product prices, and ongoing geopolitical tensions.

On August 22, both foreign institutional investors (FIIs) and domestic institutional investors (DIIs) were net buyers, with FIIs purchasing shares worth Rs 1,371.79 crore and DIIs making a significant inflow of Rs 2,971.89 crore.