Sensex jumps over 200 pts, Nifty tops 27,900 as Reliance, IT stocks lead rally

India’s benchmark indices Sensex and Nifty opened in the green on Monday, lifted by gains in Reliance Industries and IT stocks, as Asian markets mirrored Wall Street’s advance after U.S. Federal Reserve Chair Jerome Powell signalled a potential rate cut next month.

The BSE Sensex climbed 207.24 points, or 0.25%, to open at 81,514.09, while the NSE Nifty gained 54.05 points, or 0.22%, to open at 24,924.15.


Infosys, TCS, Tech Mahindra, HCL Technologies and Bajaj Finance were among the top gainers on the Sensex, each rising between 1.3% and 1.5%.

On a sectoral basis, IT stocks which earn a significant portion of their revenue from the U.S. outperformed, with the Nifty IT index climbing 1.8% as investors cheered comments from U.S. Federal Reserve Chair Jerome Powell, who signalled the possibility of a September rate cut while cautioning that inflation risks remain and no decision has been finalised.

Meanwhile, shares of Reliance Power and Reliance Infrastructure, both owned by Anil Ambani, slumped 5% to hit their lower circuits. The declines came despite assurances from the companies that a Central Bureau of Investigation probe into an alleged Rs 2,929 crore bank fraud at Reliance Communications would not affect their operations.

Reliance Industries, the third-biggest weight on the Nifty 50, was up 0.5% in early trading.

Last week, the Nifty and Sensex rose about 1% each, supported by proposed changes to goods and services tax (GST) rates and S&P’s upgrade of India’s sovereign rating. Investors are also keeping a close watch on India-U.S. trade talks, with a fresh 25% U.S. tariff on Indian goods scheduled to take effect on August 27.

Expert Views

Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, said U.S. Federal Reserve Chair Jerome Powell’s remarks at Jackson Hole, particularly that “there is a downside risk to unemployment and shifting risk balance may warrant policy adjustment, ”clearly point to a likely rate cut in September. “The U.S. stock market gave a thumbs up to this comment,” he noted.

However, Vijayakumar cautioned that the same optimism may not carry over to Indian equities. He pointed out that tariff concerns, particularly the 25% penalty on Indian crude imports from Russia set to take effect on August 27, could weigh heavily. While a 50% tariff is unlikely to derail India’s growth, he said it would hurt exports and cause job losses in labour-intensive industries such as textiles, gems and jewelry, and leather.

“The sentimental impact of this development will be negative from the market perspective,” Vijayakumar said, adding that foreign institutional investor selling could further pressure equities. Still, he argued that domestic consumption-driven sectors, such as financials, telecom, aviation, hotels, cement and parts of capital goods, remain better positioned to withstand global headwinds.

Anand James, Chief Market Strategist at Geojit Investments, said that Friday’s trade confirmed the expected volatility but crucially “without penetrating 24,850.” James noted that markets are likely to open on Monday with “renewed attempts to push higher.”

At the same time, James cautioned that if the index fails to hold above 25,115 after the early optimism, or slips directly below 24,740, it could trigger “a 23,860 plunge.” While he emphasised that such a sharp fall is not anticipated immediately, he also tempered expectations, saying “a free move up is less expected either.”

FII/DII Tracker

On the institutional front, Foreign Institutional Investors (FIIs) sold equities worth Rs 1,622.52 crore on August 22, while Domestic Institutional Investors (DIIs) also sold Indian shares to the tune of Rs 329 crore.

Crude Impact

Oil prices inched higher Monday as renewed Ukrainian strikes on Russia stoked concerns over potential supply disruptions, while expectations of U.S. interest rate cuts bolstered the outlook for global growth and fuel demand.

Brent crude futures were up 3 cents at $67.76 a barrel as of 0342 GMT, while West Texas Intermediate gained 7 cents to $63.73.

Rupee vs Dollar

The Indian rupee strengthened 17 paise to 87.35 against the U.S. dollar in early trade on Monday after Federal Reserve Chair Jerome Powell signalled the possibility of a September rate cut. Analysts, however, cautioned that the gains may be capped by uncertainty over upcoming U.S. tariffs.

In broader currency markets, the dollar continued to struggle following Powell’s dovish turn on Friday, which had futures pricing in an 84% chance of a September cut and more than 100 basis points of easing by mid-2026. The greenback edged up 0.2% to $1.1699 per euro in Asian trading but hovered near Friday’s trough of $1.1742, its weakest level since July 28.

(with inputs from agencies)