Indian Stock Market Gains: Sensex and Nifty Rise, Midcap Falls
The Indian equity market closed on a positive note on Monday, supported by gains in consumer goods and information technology (IT) stocks. At the close of trading, the Sensex gained 194 points to reach 82,560, while the Nifty rose 43 points to 25,279. However, the midcap index fell by 134 points to 59,153, while the Nifty Bank gained 89 points, closing at 51,440.
Out of the 4,008 companies traded, 1,684 advanced, 2,191 declined, and 133 remained unchanged during the trading day. Investors are keenly awaiting the Goods and Services Tax (GST) data for August. Meanwhile, India’s Manufacturing Purchasing Managers’ Index (PMI) saw a slight decline in August, falling to 57.5 from 58.1 in July, according to a report by HSBC India Manufacturing PMI. Foreign portfolio investors have shown renewed interest in the Indian equity markets.
Globally, stock markets remained cautious ahead of major data releases this week, with markets exhibiting flat movement. Ajit Mishra, SVP, Research, Religare Broking Ltd, said, “Markets are gradually inching higher each day, buoyed by favourable global cues and rotational buying in heavyweight stocks. However, the ongoing underperformance of banking majors continues to dampen sentiment. Given this scenario, we recommend aligning trades with the prevailing trend and seeking buying opportunities on market dips.”
V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, stated, “The market has entered a phase of steady but mild upward movement, driven by the accumulation of quality large-cap stocks. FIIs turning buyers last week, mainly due to some large bulk deals, has also improved market sentiment. If the market closes positive today, it will mark a record for the Indian stock market, with the Nifty posting a 13-day winning streak. Sentiment-wise, this is positive.”
He added, “Sectoral churns are happening faster now than earlier. IT has rebounded on hopes of increased tech spending in the US, which the expected soft landing of the US economy is likely to facilitate. Pharma stocks are witnessing accumulation due to improving business prospects. Profit booking is occurring in segments like railways and defence, triggered by valuation concerns.”
According to Vijayakumar, the first quarter GDP data for the financial year 2025, which stood at 6.7 per cent, indicates mild sluggishness in the economy. This may prompt the RBI to consider rate cuts in the next monetary policy meeting. Even though banks are struggling with deposits, rate cuts could improve prospects for banking stocks, he said.
Doubts Revealed
Sensex -: Sensex is a stock market index in India that shows how the shares of 30 big companies are doing. It’s like a report card for these companies.
Nifty -: Nifty is another stock market index in India, but it tracks 50 big companies. It’s also a way to see how well these companies are performing.
Midcap -: Midcap refers to medium-sized companies in the stock market. These companies are not as big as the ones in Sensex or Nifty but are still important.
GST -: GST stands for Goods and Services Tax. It’s a tax that people pay when they buy things or use services in India.
Manufacturing PMI -: Manufacturing PMI is a number that shows how well factories are doing. If the number is high, it means factories are making a lot of things.
Ajit Mishra -: Ajit Mishra is an expert who knows a lot about the stock market. He gives advice and shares his thoughts on how the market is doing.
V K Vijayakumar -: V K Vijayakumar is another expert in the stock market. He also shares his opinions and advice on market trends.
GDP -: GDP stands for Gross Domestic Product. It’s the total value of all goods and services made in a country. It shows how healthy the economy is.
RBI -: RBI stands for Reserve Bank of India. It’s the main bank in India that controls the money supply and interest rates.
Rate cuts -: Rate cuts mean the RBI lowers the interest rates. This makes borrowing money cheaper, which can help the economy grow.