Sensex, Nifty, stock market today: Frontline indices, the Sensex and the Nifty 50, ended with decent gains on the monthly expiry day on Tuesday, 25 August, as a decline in oil prices influenced sentiment. Brent crude fell over 3% to around $89 per barrel, its lowest level in a week.
The 30-share pack closed 287 points, or 0.37%, higher at 77,656, while the NSE counterpart settled at 24,335, rising 116 points, or 0.48%. Midcaps also witnessed healthy buying, as the Nifty Midcap 150 rose by 0.45%. However, the Smallcap 250 index slipped 0.15%.
Market benchmarks rose on buying in select heavyweights amid a decline in crude oil prices due to profit booking, even as the US ramped up economic pressure on Iran and its trading partners, and Tehran warned it would respond harshly to the expanded US sanctions.
"The much-anticipated U.S. sanctions against Iran fell short of market expectations, causing crude oil prices and bond yields to moderate from their recent peaks. This relief in energy costs aided a moderately positive close today on the monthly expiry day," said Vinod Nair, Head of Research, Geojit Investments.
Nair added that market sentiment may remain cautious in the near term as unresolved US-Iran tensions keep oil prices and long-dated bond yields relatively elevated, leaving investors sensitive to sudden shifts in the Middle East's geopolitical landscape.
Investors' focus is now on the upcoming US PCE inflation data on Wednesday and on Fed Chair Kevin Warsh's first speech at the Jackson Hole Symposium on Friday, which will shape expectations about the interest rate trajectory in the US.
Select heavyweights, including ICICI Bank, Infosys, and SBI, contributed the most to the Sensex's rise. However, losses in HDFC Bank and Eternal shares capped the benchmark's gains.
Vikram Kasat, Chief Business Officer – Advisory and Dealing at PL Capital, noted that the Nifty recovered from intraday weakness during the closing auction session (CAS), ending near the key 24,300 mark, underscoring resilience in the broader market. Volatility was manageable despite geopolitical concerns, elevated crude prices and expiry-related activity
Kasat believes a sustained move above 24,300 could strengthen sentiment, while investors should remain selective and focus on fundamentally strong businesses.
Adani Enterprises, Max Healthcare Institute, Apollo Hospitals, and InterGlobe Aviation (IndiGo) ended as the top gainers in the index, rising 2-4%.
HDFC Life Insurance Company, Cipla, and ONGC ended as the top laggards in the index, each falling over 1%.
IndiGo, Adani Ports, and Infosys closed as the top gainers, while Eternal, HCL Tech, and Power Grid ended as the top laggards in the Sensex kitty of stocks.
On the NSE, Private Bank (down 0.20%), Metal (down 0.07%), and Nifty Bank (down 0.02%) indices declined while the rest ended higher.
Nifty Healthcare, Consumer Durables, Pharma, and PSU Bank ended higher by up to 1%.
According to Ajit Mishra, SVP-Research at Religare Broking, the Nifty has once again tested the trendline support, currently placed around 24,100.
