Stock market today: The Indian stock market saw solid buying on Tuesday, August 20, with key indices Nifty 50 and Sensex closing up by half a per cent, driven by mostly positive global cues.
Major markets across Asia and Europe climbed on Tuesday, bolstered by expectations that US Fed Chair Jerome Powell will provide clear signals on the potential size of a rate cut in September during the upcoming Jackson Hole Symposium this week.
As per experts, the market discounted a 25 bps rate cut in September. However, some seem to wager on a 50 bps cut next month.
Sensex closed with a gain of 378 points, or 0.47 per cent, at 80,802.86, while the Nifty 50 settled 126 points, or 0.51 per cent, higher, at 24,698.85.
The BSE Midcap index rose by a per cent while the Smallcap index mirrored the benchmark, increasing by half a per cent. The overall market capitalisation of the firms listed on the BSE rose to nearly ₹456.7 lakh crore from nearly ₹454.4 lakh crore in the previous session, making investors richer by over ₹2 lakh crore in a single session.
Nearly 300 stocks, including TCS, Tech Mahindra, Sun Pharma, Ashok Leyland, HDFC Asset Management Company, ICICI Lombard General Insurance Company, Persistent Systems, Shriram Finance, and Trent, hit fresh 52-week highs in intraday trade on BSE.
"The domestic market started the session with a strong surge, buoyed by positive global sentiment amidst Israel-Hamas ceasefire talks and diminishing US recession fears due to recent favourable data. Concurrently, easing geopolitical risks and weak China demand have led to a decline in crude prices, benefiting the domestic economy," Vinod Nair, Head of Research, Geojit Financial Services, observed.
"Inflationary pressure in Japan and the appreciating Yen cautioned the rally. This week’s Japan inflation data and FOMC minutes will provide insights into future interest rate trajectories and market trends," said Nair.
In the Nifty 50 index, 38 stocks closed higher. Shares of SBI Life, HDFC Life and Bajaj Finserv ended as the top gainers in the index. On the flip side, shares of Bharti Airtel, ONGC and Apollo Hospitals ended as the top losers in the index.
The Nifty Bank index rose 0.86 per cent, while the Nifty Financial Services rose 1.11 per cent. The Nifty PSU Bank and Private Bank indices clocked gains of 1.68 per cent and 1.02 per cent, respectively.
"The Nifty moved above 24,700 after sustaining above 24,600. The trend is likely to remain strong as long as it stays above the 24,600-24,650 range. A decisive fall below 24,600 might trigger a reversal of the current uptrend. On the higher end, the Nifty might move towards 24,840-24,860," said Rupak De, Senior Technical Analyst, LKP Securities.
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