The S&P BSE Sensex advanced 213.45 points, or 0.26%, to 81,857.84, while the NSE Nifty 50 gained 69.90 points, or 0.28%, closing above the 25,000 mark at 25,050.55 after trimming early losses.
Top Movers of the Day
Both the Sensex and Nifty have climbed steadily over the past week, gaining about 2.3% and 2%, respectively, across five sessions.
On the 30-share Sensex, Infosys, Tata Consultancy Services, Hindustan Unilever, NTPC and Tata Steel were among the top movers, rising between 1.8% and 3.9%.
Investor sentiment has been buoyed by optimism around proposed Goods and Services Tax (GST) reforms and S&P’s upgrade of India’s sovereign outlook.
On a sectoral basis, IT stocks, which earn a significant portion of revenue from the U.S., advanced 2.7% head of the Federal Reserve’s Jackson Hole symposium later this month.Meanwhile, consumer stocks added 1.4% on expectations that tax reforms could spur demand.Financials edged down 0.4%, tempering the broader advance. The small-cap and mid-cap gauges climbed 0.3% and 0.5%, respectively.Gaming-linked firms slumped, with Nazara Technologies tumbling 12.9% and Onmobile Global sliding 3.4% after reports that the government plans to ban online money-based games.
Expert Views
The Indian market sustained its positive momentum, supported by strong domestic inflows and favourable macro tailwinds, said Vinod Nair, Head of Research at Geojit Investments, adding that “however, rich valuations and external risks, particularly the U.S. tariffs and sanctions on purchase of Russian crude, continue to pose challenges.”
“Hence, greater visibility on U.S. trade policy and the path of earnings recovery will be critical. Meanwhile, global sentiment is cautious ahead of the release of the FOMC minutes later today, with investor attention gradually shifting to the U.S. Fed Chair’s speech at Jackson Hole this weekend, which is expected to provide clearer guidance on future policy direction,” said Nair.