Markets open strong; IT, banks, and FMCG drive early gains
With 1,740 shares rising on the NSE and 634 shares declining, the advance-decline ratio strongly remained in favour of advances.
Market Update at 9:40 AM: As expected based on GIFT Nifty's performance, Indian benchmark indices started today's trading session on a strong note, driven by robust gains in the consumer durables, telecom, and information technology sectors.
At 9:40 am, the BSE Sensex gained 0.25 per cent reaching a level of 81,108. The Nifty 50 index surged 0.25 per cent to the 24,832 level. Within the Nifty 50, Grasim Industries, Tata Consumer Products and Bharti Airtel were among the leading gainers, whereas Power Grid Corporation of India, Dr Reddy’s Laboratories and Shriram Finance were among the market draggers.
Broader indices sustained their upward momentum, reflecting widespread positive investor sentiment across the market. With 1,740 shares rising on the NSE and 634 shares declining, the advance-decline ratio strongly remained in favour of advances.
In terms of sectoral performance, Nifty Consumer Durables, Nifty Bank and Nifty FMCG were the best performers, while Nifty Realty and Nifty Pharma experienced the most decline.
Pre-Market Update at 8:30 AM: The U.S. stock market closed higher overnight following the release of the Federal Reserve meeting minutes, which indicated that officials were already leaning strongly towards a rate cut in the upcoming September meeting. Additionally, positive U.S. payroll data further fuelled expectations of this anticipated rate reduction.
The Nasdaq Composite Index climbed 0.57 per cent, the S&P 500 surged 0.42 per cent, and the Dow Jones Industrial Average added 0.14 per cent.
This optimism extended to Asian markets, where most key indices traded higher. The GIFT Nifty was trading at a premium compared to the previous close of Nifty futures, signalling a positive opening for domestic indices.
Oil prices dropped by USD 1 per barrel on Wednesday following a significant downward revision of employment statistics by the U.S. government. The dollar traded near its lowest level in over a year against the euro and sterling, following a dovish stance from the Federal Reserve.
On August 21, foreign institutional investors (FIIs) sold shares worth Rs 799.74 crore, while domestic institutional investors (DIIs) made a sizeable inflow of Rs 3,097.45 crore.