Sensex jumps over 100 pts, Nifty tops 25,000 ; IT stocks rise

Indian benchmark indices Sensex and Nifty opened lower on Wednesday, dragged down by HDFC Bank and State Bank of India, with the benchmarks set to break a five-day winning streak as Asian markets tracked a tech-led selloff on Wall Street ahead of the Federal Reserve’s Jackson Hole conference.

The BSE Sensex declined 115 points, or 0.14%, to open at 81,529.23, while the NSE Nifty 50 slipped 31.30 points, or 0.13%, to open at 24,949.35. However, the indices saw a sharp recovery and turned positive. At 10:35 am, Sensex traded 103 points higher at 81,747, whereas Nifty50 rose 29 points or 0.12% to 25,011.

On the Sensex, Bajaj Finance, HCL Technologies, Tata Motors, Kotak Mahindra Bank and Bharat Electronics led the losses, slipping between 0.8% and 1.4% in early trade.


On a sectoral basis, financial stocks were the biggest sectoral drag, down 0.5%, while banks fell 0.4%. IT stocks showed signs of recovery after a weak start.

The broader small-caps inched up 0.2% and mid-caps were little changed.

Meanwhile, gaming stocks came under heavy pressure after the Union Cabinet cleared a bill to regulate online gaming platforms. Shares of Nazara Technologies and Delta Corp tumbled more than 6%. The legislation, expected to be tabled in Parliament today, aims to tighten oversight of India’s fast-growing digital gaming industry.

Investors are awaiting the Federal Reserve’s annual symposium in Jackson Hole, Wyoming, later this week. Markets broadly expect a 25-basis-point rate cut in September, but lingering concerns over tariffs have kept sentiment cautious.

Expert Views

“The three-day 364-point rally in the Nifty came in response to the unexpected announcements relating to GST reforms which are likely to happen before Diwali,” said Dr. V.K. Vijayakumar, chief investment strategist at Geojit Financial Services. The market, he added, has been buoyed by hopes of a demand boost in autos, FMCG, insurance and financials, along with improved India-China ties.

“However, there is no scope for a sustained rally since the August 27 deadline for the 25% secondary tariff on India is fast approaching,” Vijayakumar cautioned, pointing to continuing uncertainty from the Trump administration’s trade stance.

In the near term, Vijayakumar said investors may focus on domestic consumption themes such as banking and financials, telecom, hotels, healthcare, automobiles and cement, particularly the fairly valued segments.

Anand James, chief market strategist at Geojit, said that while the Nifty’s advance stalled near the 50-day moving average at 25,013, the rebound from 24,850 was encouraging. As long as that level holds, he said, “our favoured approach would be to buy dips today as well, but with upsides limited to 25,096–25,200.”

Global Markets

Asian stocks fell Wednesday, tracking a tech-led selloff on Wall Street that pulled down high-valuation growth names.

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.47%, while futures pointed to further weakness in Europe and the U.S. EUROSTOXX 50 futures were down 0.55%, Germany’s DAX shed 0.5% and FTSE futures eased 0.14%. U.S. contracts also extended losses from the prior session, with S&P 500 futures off 0.2% and Nasdaq futures down 0.34%.

Other regional markets were broadly lower, with Japan’s Nikkei dropping 1.2% and China’s CSI 300 sliding 0.5%.

Attention now shifts to the Federal Reserve’s annual Jackson Hole symposium from August 21-23, where Chair Jerome Powell is set to outline his view on the economy and policy. Investors will be parsing his remarks for signals on interest rates, with markets nearly fully pricing in a cut next month.

In commodities, spot gold edged down 0.07% to $3,312.89 an ounce.

FII/DII Tracker

On the institutional front, Foreign Institutional Investors (FIIs) sold equities worth a little over Rs 634 crore on August 19, while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 2,261 crore.

Crude Impact

Oil prices edged higher Wednesday as supply worries resurfaced and hopes for a swift end to Russia’s war in Ukraine dimmed, keeping sanctions on Russian crude in place and raising the risk of fresh curbs on its buyers.

Brent crude futures gained 14 cents, or 0.2%, to $65.93 a barrel by 01:49 GMT. U.S. West Texas Intermediate for September delivery, which expires Wednesday, rose 37 cents, or 0.6%, to $62.72.

Rupee vs Dollar

The Indian rupee slipped 3 paise to 87.16 against the U.S. dollar in early Wednesday trade, weighed down by weakness in other Asian currencies and muted equity inflows.

The dollar index, which measures the greenback against six major peers, edged up to 98.40.

(with inputs from agencies)