Market closes higher on banking recovery; FMCG and consumer durables shine

The BSE Sensex gained 0.13 per cent reaching a level of 80,905. The Nifty 50 index climbed 0.29 per cent to the 24,770 level.

Indian benchmark indices traded within a narrow range throughout the trading session, fluctuating between modest gains and losses. However, they gained much-needed momentum in today's closing trades, driven by robust gains in the FMCG, consumer durables, and healthcare sectors.

The BSE Sensex gained 0.13 per cent reaching a level of 80,905. The Nifty 50 index climbed 0.29 per cent to the 24,770 level. 

Within the Nifty 50, Divi’s Laboratories, Titan and SBI Life Insurance were among the leading gainers, whereas Tech Mahindra, Tata Steel and UltraTech Cement, Company were among the market draggers.

The broader markets experienced optimistic investor sentiment, with the BSE Midcap Index rising by 0.43 per cent and the BSE Smallcap Index surging by 0.87 per cent. Rane (Madras) Ltd, Nelco Ltd, and SEPC Ltd led the Small-Cap rally, hitting the 20 per cent upper circuit amid strong buying interest.

With 1,806 shares rising on the NSE and 931 shares declining, the advance-decline ratio strongly remained in favour of advances.

Market Update at 2:30 PM: The frontline indices remained confined within a narrow range, struggling to gain the necessary momentum. At 2:30 pm, the BSE Sensex edged down by 0.02 per cent reaching a level of 80,792. The Nifty 50 index added 0.15 per cent to the 24,736 level. 

Within the Nifty 50, Divi’s Laboratories, Titan and SBI Life Insurance were among the leading gainers, whereas UltraTech Cement, Tata Steel and State Bank of India were among the market draggers.

The broader indices outperformed, defying the weak performance of the benchmarks. The BSE Mid-Cap Index surged 0.23 per cent, while the BSE Small-cap Index experienced a more significant rise, gaining by around 0.80 per cent.

With 1,733 shares rising on the NSE and 951 shares declining, the advance-decline ratio strongly remained in favour of advances.

Market Update at 12:20 PM: Headline indices continued to fluctuate between modest gains and losses. At 12:20 pm, the BSE Sensex edged down by 0.02 per cent reaching a level of 80,793. The Nifty 50 index gained 0.12 per cent to the 24,728 level. 

Within the Nifty 50, Wipro, Divi’s Laboratories, Titan and Asian Paints were among the leading gainers, whereas UltraTech Cement, Tech Mahindra and Tata Steel were among the market draggers.

Broader indices, including the BSE Mid-cap and BSE Small-cap Index, experienced significant gains of 0.30 per cent and 0.78 per cent, respectively. With 1,760 shares rising on the NSE and 867 shares declining, the advance-decline ratio strongly remained in favour of advances.

Market Update at 11:15 AM: After recovering from today’s initial losses and trading slightly higher, the benchmark indices have once again pared gains and are now trading flat. At 11:15 am, the BSE Sensex fell 0.14 per cent reaching a level of 80,693. The Nifty 50 index edged down by 0.03 per cent to the 24,690 level. 

Within the Nifty 50, Divi’s Laboratories, Adani Enterprises and Hindalco Industries were among the leading gainers, whereas UltraTech Cement, Tata Steel and ICICI Bank were among the market draggers.

On the other hand, with 1,683 shares gaining and 833 shares declining on the NSE, the advance-decline ratio strongly favoured advances. Broader markets continued to display resilience, with the Nifty Midcap 100 and Nifty Smallcap 100 gaining 0.21 per cent and 0.86 per cent, respectively, despite the overall weak market.

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

Market Update at 9:35 AM: As anticipated from GIFT Nifty's performance, Indian benchmark indices opened today's trading session on a weak note, impacted by the downturn in global markets.

At 9:35 am, the BSE Sensex fell 0.14 per cent reaching a level of 80,688. The Nifty 50 index edged down by 0.06 per cent to the 24,683 level. Within the Nifty 50, Divi’s Laboratories, Dr Reddy’s Laboratories and Larsen & Toubro were among the leading gainers, whereas UltraTech Cement, Kotak Mahindra Bank and Tech Mahindra were among the market draggers.

However, broader indices outperformed the main indices, reflecting a widespread upbeat investor sentiment across the market. With 1,613 shares rising on the NSE and 684 shares declining, the advance-decline ratio strongly remained in favour of advances.

In terms of sectoral performance, Nifty Media, Nifty FMCG, and Nifty Pharma were the best performers, while Nifty Realty and Nifty Bank experienced the most decline.

Pre-Market Update at 8:00 AM: U.S. markets cooled off overnight, ending their longest rally of the year, as all three major indices closed in the red with attention now turning to Fed Chair Powell's upcoming speech later this week.

The Nasdaq Composite Index declined 0.33 per cent, the S&P 500 fell 0.20 per cent, and the Dow Jones Industrial Average lost 0.15 per cent. The dollar dropped to a new seven-month low on Tuesday as traders anticipated remarks from the Federal Reserve Chair, which could offer insights into the pace of the U.S. monetary easing cycle.

All major Asian market indices were trading significantly lower today, mirroring the weakness sparked by overnight uncertainties in the U.S. market. Indian equity benchmarks, Sensex and Nifty 50, are also expected to open in the red in today's trading session, as predicted by the weakness in GIFT Nifty.

Oil prices dipped on reports indicating rising U.S. crude inventories and expectations that tensions in the Middle East were easing after mediators toured the region.

On August 20, foreign institutional investors (FIIs) sold shares worth Rs 1,457.96 crore, while domestic institutional investors (DIIs) made a sizeable inflow of Rs 2,252.10 crore.

The Nifty IT Index has seen a strong rebound over the past two weeks, climbing by around 8 per cent. Do you think IT stocks will continue their rally, or are they likely to face profit booking?