Indian equity benchmark Nifty ended the volatile session at 24,636, closing above the crucial 24,600 mark despite mixed market sentiment. According to latest reports, the index gained 11.35 points or 0.05% while the broader market showed divergent trends. The Sensex outperformed with a strong gain of 373.76 points or 0.48%, closing at 78,954.76 near the day's highs. Market breadth remained positive with about 2,100 stocks advancing, 2,191 declining, and 202 unchanged out of 4,493 stocks that traded on NSE on August 6. The Nifty Midcap 100 declined 0.4% and Nifty Smallcap 100 rose 0.5%. The Sensex opened higher with a 201-point rise to 78,782 and Nifty 50 gained 16 points to begin at 24,641, signaling constructive near-term momentum. Indian markets found support from easing crude oil prices and the RBI's stable policy outlook despite range-bound trade.
PSU bank stocks emerged as the top performers, with Nifty PSU Bank surging 2.2% to lead sectoral gains, followed by Nifty Oil & Gas which advanced 0.8%. However, the session was capped by weakness in metal, media and realty sectors, with Nifty Media being the worst performer, falling 1.3%, while Nifty Realty also declined 1.3%. Nifty Auto and Nifty Metal ended lower, shedding 1% each, respectively, while Nifty IT slipped 0.9%. Among individual stocks, Reliance Industries was the biggest gainer, rising 3.52% to ₹1,325, while Power Grid Corp was the biggest loser, falling 11% to ₹270.75. Top gainers on the Sensex included Tata Steel, ICICI Bank, IndiGo, Asian Paints, Trent, Bharti Airtel and Tech Mahindra, each gaining around 1% to lead gains, while Power Grid, Axis Bank and Adani Ports shares fell nearly 1% to lead losses. Nifty Metal led gains with a 0.45% increase, while Nifty Auto and Nifty FMCG traded in the red with marginal losses.
Despite the volatile session, Nifty continued to hold above its key moving averages on the daily chart, indicating that the broader bullish structure remains intact. The index remained range-bound throughout the day as participants stayed indecisive about the market's direction, with buying momentum fading at higher levels. 24,600 acted as crucial support throughout the session, while the index faced resistance near the previous day's closing level. According to Geojit Investments, 24,775 remains the level to breach for a potential breakout, with Anand James suggesting that a direct rise above 24,650 may be an early entry into a potential breakout move. The technical view indicates that Nifty's supports have been largely intact despite consolidation and weakness, with immediate support placed around 24,550 and resistance seen around 24,750–24,850. As long as the Nifty sustains above 24,600, it has the potential to move towards 24,800, with a sustained breakout above 24,800 could trigger a fresh directional rally and strengthen the bullish momentum.
Several stocks witnessed significant movements during the session. Navin Fluorine advanced 14% on strong operational performance, while Swan Defence and Heavy Industries climbed 4% to a 52-week high of ₹2,665 after winning an order from Denmark's Svitzer A/S. GMM Pfaudler rallied 14% after reporting a 114.3% surge in June-quarter profit, and Biocon rose 3% after posting a 349.4% jump in Q1 profit. Juniper Green Energy made a strong stock market debut, ending 16.6% higher at ₹262.50 after listing at a 9% premium over its issue price of ₹245 on the NSE. Among the gainers, Navin Fluorine International surged 13.3% and Neuland Laboratories climbed 8.2% following better-than-expected June quarter earnings. Tata Technologies rebounded after two consecutive sessions of losses, surging 6.3% to ₹801 per share. Defence stocks witnessed strong buying interest, led by Mazagon Dock Shipbuilders, which gained 6.3% to ₹2,530 per share. Hindustan Aeronautics, ideaForge Technology, MTAR Technologies, TechEra Engineering, Bharat Dynamics, GRSE, and Zen Technologies also advanced more than 3% each. Among the laggards, Firstsource Solutions topped the losers' list, plunging 13.4% to ₹294 per share, while Blue Star, Saregama India, and Cemindia Projects also came under heavy selling pressure, with each declining more than 4%.
The August monetary policy delivered on expected lines, with the RBI maintaining its accommodative stance and not triggering an immediate market turn. According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments, the key takeaway is that rate hikes are not imminent, which keeps interest-elastic sectors supported in the near term. This framing helps the financials and autos sustain momentum while earnings visibility improves across NBFCs and automobile segments. The policy message suggests that rate hikes are some time away, and therefore, interest elastic sectors are unlikely to be influenced by interest rates in the near-term. This development is particularly positive for cyclical sectors like metals, as the pause in rate hikes supports demand-sensitive industries. The combination of positive sectoral performance and accommodative monetary policy creates a constructive environment for continued market gains, with analysts noting that the breach of 24,775 could unlock a further rally in the near term. Indian equity markets drew support from the moderation in crude oil prices, aided by intensified diplomatic efforts to restore regional stability and normalize shipping activity through the Strait of Hormuz. The positive sentiment was further reinforced by the RBI's steady policy stance and constructive growth outlook, prompting selective buying in heavyweights, banking, and energy stocks.
