Indian equities ended the August derivatives series on a firm note on Tuesday, with the Nifty gaining 115 points after a late-session rally helped the benchmark recover more than 200 points from the day's low. According to reports from CNBC TV18, the benchmark ended at 24,334, up 0.48%, while the Sensex gained 287 points to close at 77,656. The Nifty had been under pressure earlier in the session but staged a sharp recovery towards the close, with buying in heavyweight constituents helping the index finish at its highest level in about two weeks. The market closed at a two-week high, with ICICI Bank, Reliance Industries and L&T among the top contributors. Among Nifty 50 constituents, Adani Enterprises, Max Healthcare and Apollo Hospitals were the top gainers, while HDFC Life, Cipla and ONGC were the major laggards. More than 35 Nifty stocks closed higher, with Adani Enterprises and Max Health among the top gainers.
The Nifty gained about 1.5% during the August series, underscoring the resilience of large-cap stocks despite intermittent volatility. As reported by CNBC TV18, the advance-decline ratio remained tilted towards declines at 4:5, suggesting that the headline index gains were not broad-based. The recovery was supported by the rupee's strengthening to 95.41 per US dollar from Monday's close of 95.75, while favourable moves in crude oil supported rate-sensitive and consumption-linked counters. The August series marks the first monthly expiry since the Closing Auction Session began, with both Nifty and Nifty Bank gaining over 1% each in the series. Among Nifty stocks, 24 are higher while 26 have declined in the August series. The closing auction session (CAS) provided an additional boost, with the Nifty gaining nearly 75 points during the session and significantly contributing to the day's gains.
Sectoral performance was largely positive, with all sectoral indices ending higher except Nifty Metal and Nifty Private Bank. Healthcare, Consumer Durables and Pharma were the top-performing sectors. The Nifty Midcap 100 gained 0.54% to close at a record high, while the Nifty Smallcap 100 declined 0.10%. According to CNBC TV18, the Nifty Midcap index rose 346 points, or about 0.5%, to 64,163, with Angel One, IREDA, Laurus Labs and Indus Towers among the notable gainers. Rate-sensitive counters like Shriram Finance and IndiGo gained about 2% each amid the supportive currency and oil backdrop. The Nifty Bank slipped 12 points to 57,514.
According to Nandish Shah of HDFC Securities, the nearly 75-point gain during the CAS helped the Nifty engulf the moves of the previous three sessions in a single candle. The index also reclaimed its 20-day DEMA, placed around 24,300. Shah said the Nifty has been respecting support from an upward-sloping trendline on the weekly charts, which has now moved up to around 24,100. On the upside, the 200-day DEMA near 24,375 remains an immediate hurdle, followed by 24,600. Osho Krishan of Angel One said a sustained move above the 24,450-24,500 resistance zone could reinforce the positive momentum and pave the way for further gains in the coming sessions. Nagaraj Shetti of HDFC Securities sees the Nifty's short-term trend as having turned positive following the formation of a new higher bottom, with next upside levels at 24,500-24,600 while immediate support remains at 24,100.
The Indian rupee was among the best-performing Asian currencies, appreciating 34 paise to close at 95.41 against the US dollar. A sharp decline in crude oil prices and suspected central bank intervention supported the domestic currency, while the Dollar Index slipped below the 99 mark. As reported by CNBC TV18, Brent crude fell 3.2% to around $89 a barrel, its lowest level in a week, amid hopes of easing US-Iran tensions. However, developments around Iran and the Strait of Hormuz will remain key monitorables for crude prices, the rupee and foreign investor flows. The rupee's favourable move and softer crude prices helped stocks such as Shriram Finance and IndiGo, which gained 2% each. Market experts remain cautious on large-cap IT stocks, even with the alleviation of H-1B visa concerns, while maintaining positive outlook on diagnostics, hospitals, CDMOs and auto ancillaries.
