21-Aug-2025 15:48
Sensex, Nifty extend gains for 6th day; pharma shares gain
The domestic equity benchmarks ended with minor gains today, extending their winning streak to a sixth straight session. Investor optimism was boosted by the possibility of a Goods and Services Tax (GST) cut. However, caution prevailed as market participants awaited cues on interest rate policy from the upcoming US Federal Reserve annual symposium.
The Nifty settled above the 25,050 mark. Pharma, realty and financial services shares advanced while FMCG, PSU bank and consumer durables shares declined.
As per provisional closing data, the barometer index, the S&P BSE Sensex, rallied 142.87 points or 0.17% to 82,000.71. The Nifty 50 index rose 33.20 points or 0.13% to 25,0.83.75. In the past six trading sessions, the Sensex and Nifty jumped 2.19% and 2.43%, respectively.
In the broader market, the S&P BSE Mid-Cap index shed 0.12% and the S&P BSE Small-Cap index rose 0.01%.
The market breadth was positive. On the BSE, 2,095 shares rose and 1,993 shares fell. A total of 169 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 3.50% to 11.37.
Economy:
India's private sector witnessed a sharp acceleration in business activity in August, with robust gains across both manufacturing and services, according to the latest HSBC Flash PMI data.
The HSBC Flash India Composite PMI Output Index surged to 65.2 in August, up from 61.1 in July, signaling one of the fastest rates of expansion in over a year.
The services sector led the upturn, with the HSBC Flash India Services PMI Business Activity Index climbing to 65.6, compared to 60.5 in July. This marks a significant boost in services output and reflects strong demand conditions and rising new business intakes.
Meanwhile, manufacturing also remained firmly in growth territory. The HSBC Flash India Manufacturing PMI Output Index rose to 64.2, up from 62.5 in July. The broader Manufacturing PMI, which includes new orders, employment, and inventories, edged up to 59.8, compared to 59.1 in the previous month.
India's eight core industries grew by 2% in July 2025 compared to the same month last year, according to data released by the Commerce and Industry Ministry on Wednesday. The growth was driven by higher production in steel, cement, fertilisers, and electricity.
These eight sectors'coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement, and electricity'account for 40.27% of the weight in the Index of Industrial Production (IIP), making them key indicators of overall industrial performance.
Steel, which holds the highest weight (17.92%) in the index, surged 12.8% in July, buoyed by strong demand from government infrastructure projects. Cement output rose 11.7%, reflecting robust construction and infrastructure activity. Fertiliser production increased 2%, supported by healthy kharif sowing and good monsoon rains. Electricity generation edged up by 0.5%.
However, several sectors saw declines. Coal production dropped 12.3% due to heavy monsoon rains. Crude oil and natural gas output fell by 1.3% and 3.2% respectively, while refinery production dipped 1%.
Cumulatively, core sector growth for April'July FY26 stood at 1.6% year-on-year. Steel and cement led the gains with growth of 8.5% and 8.9%, respectively.
The revised core sector growth for June 2025 stood at 2.2%, pointing to a steady industrial trend in the early months of the fiscal year.
IPO Update:
The initial public offer (IPO) of Mangal Electrical Industries received bids for 80,47,104 shares as against 52,53,301 shares on offer, according to stock exchange data at 15:15 IST on Thursday (21 August 2025). The issue was subscribed 1.53 times.
The initial public offer (IPO) of Patel Retail received bids for 53,21,85,264 shares as against 78,15,612 shares on offer, according to stock exchange data at 15:15 IST on Thursday (21 August 2025). The issue was subscribed 68.09 times.
The initial public offer (IPO) of Shreeji Shipping Global received bids for 40,86,05,070 shares as against 1,14,08,600 shares on offer, according to stock exchange data at 15:15 IST on Thursday (21 August 2025). The issue was subscribed 35.82 times.
The initial public offer (IPO) of Gem Aromatics received bids for 20,40,47,168 shares as against 97,82,363 shares on offer, according to stock exchange data at 15:15 IST on Thursday (21 August 2025). The issue was subscribed 20.86 times.
The initial public offer (IPO) of Vikram Solar received bids for 1,48,75,99,335 shares as against 4,53,61,650 shares on offer, according to stock exchange data at 15:15 IST on Thursday (21 August 2025). The issue was subscribed 32.79 times.
Buzzing Index:
The Nifty Pharma index rose 0.95% to 22,177.70. The index shed 0.50% in the previous three trading sessions.
Mankind Pharma (up 3.61%), Cipla (up 3.01%), Dr Reddys Laboratories (up 2.55%), Laurus Labs (up 1.54%) and Lupin (up 1.2%), Glenmark Pharmaceuticals (up 0.87%), Sun Pharmaceutical Industries (up 0.5%), Alkem Laboratories (up 0.5%), Divis Laboratories (up 0.42%) and Gland Pharma (up 0.32%) added.
On the other hand, Ajanta Pharma (down 1.08%), Natco Pharma (down 0.96%) and Ipca Laboratories (down 0.8%) edged lower.
Stocks in Spotlight:
United Drilling Tools rose 0.58%. The company announced that it has received an order worth Rs 5.63 crore from Halliburton Offshore Services, INC for the supply of Conductor Wall with Multi Start Connector.
IndusInd Bank fell 1.36%. The bank has announced the signing of a memorandum of understanding (MoU) with the National Small Industries Corporation (NSIC), a Government of India enterprise under the Ministry of MSME.
Transrail Lighting added 0.41%. The company has secured a significant domestic transmission line EPC order and an international product supply order totalling to Rs 837 crore.
Shanti Gold International jumped 1.14% after the company's standalone net profit surged 174.08% to Rs 24.64 crore in Q1 FY26, compared with Rs 8.99 crore posted in Q1 FY25. Revenue from operations increased 22.07% YoY to Rs 292.77 crore in Q1 FY26.
Fedbank Financial Services rose 2.23% after the company's board is scheduled to meet on 25 August 2025, to consider raising Rs 2,500 crore via non-convertible debentures (NCDs).
Jupiter Wagons surged 3.50% after the company said that its material unlisted subsidiary, Jupiter Tatravagonka Railwheel Factory, has received a letter of intent (LoI) for the supply of wheelsets for the Vande Bharat train.
Global Markets:
The US Dow Jones index futures were currently down by 154 points, signaling a negative opening for US stocks today.
European stocks declined on Thursday as traders assessed the economic data from the region.
HCOB Flash Eurozone Composite PMI Output Index rose to 51.1 in August 2025, from 50.9 in July 2025. HCOB Flash Eurozone Manufacturing PMI rose to 50.5 in August 2025, from 49.8 in July 2025 while HCOB Flash Eurozone Services PMI Business Activity Index edged down to 50.7 in August 2025 from with 51.0 in July 2025.
Asian markets ended mixed as investors braced for three days of potentially market-moving news from the Federal Reserve's annual symposium in Jackson Hole.
Central bankers from around the world will attend the event, which begins later in the day, although the key focus will be Fed Chair Jerome Powell's speech on Friday as traders look for clues on the chances of a September rate cut.
Overnight stateside, two of the three key benchmarks ended the session on Wednesday in declines as tech stocks dragged the market lower.
The broad market S&P 500 index slipped 0.24% to close at 6,395.78, while the tech-heavy Nasdaq Composite lost 0.67% and settled at 21,172.86. Wednesday marked a fourth day of losses for the S&P 500 and a second negative session for the Nasdaq.
Meanwhile, the Dow Jones Industrial Average was the outlier, adding 16.04 points, or 0.04%, and settling at 44,938.31.
Minutes from the Fed's July gathering released yesterday, when policymakers voted to keep rates steady, suggested that Fed Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller were alone in pushing for a rate cut at the meeting.
Fed Chair Powell had said he is reluctant to cut rates because of expected tariff-driven price pressures this summer.
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