Following a seven-day losing streak, the bulls finally returned to Dalal Street in Thursday’s trade, August 20, as both benchmark indices posted healthy gains, bringing much-needed optimism to the market.
Despite the ongoing standoff between the US and Iran over control of the Strait of Hormuz, strong buying in banking and NBFC stocks, along with gains in FMCG and technology shares, provided support, with the Nifty 50 eventually closing 0.55% higher at 24,211.
The Sensex also posted a solid gain of 0.75% to close at 77,488. The broader markets registered similar gains, with the Nifty Smallcap 100 index surging 0.67% and the Nifty Midcap 100 rising 0.50%.
Barring chemicals, all major sectoral indices closed in the green, led by the media index, which surged 2.17%. It was followed by realty, FMCG, technology, cement, and consumer durables, with these sectors gaining between 0.65% and 1.66%.
Meanwhile, tensions in the Middle East are expected to flare up again after US President Donald Trump on Wednesday announced what he described as the “most crushing economic operation ever taken against any country” against Iran.
The announcement came after Trump said the US was not engaged in any talks with Iran and had no plans to begin new negotiations. He also threatened to bomb Oman if the country interfered with the US blockade of Iranian ships in the Strait of Hormuz.
As tensions appeared to escalate, crude oil prices remained elevated, with Brent crude rising towards $93 per barrel on Thursday and gaining more than 4% so far this week.
In the current market, the Indian rupee pared initial gains and settled for the day with gains of just 3 paise at 95.70 against the US dollar on Thursday, as the support from the weaker dollar index was negated by elevated crude oil prices.
Balrampur Chini leads the rally, capital and gold stocks join the rally
Balrampur Chini Mills emerged as the top performer in Thursday’s trade, with the stock surging 18% in its biggest single-day gain in 18 years after the government tightened sugar stockholding limits amid record-high domestic prices ahead of the festive season.
Netweb Technologies also remained in demand, surging another 7% to ₹5,419 apiece. MMTC, Brigade Enterprises, Cohance Lifesciences, Meesho, HBL Engineering, Zee Entertainment, Elecon Engineering, MCX and Aditya Infotech were also among the top performers, with each gaining more than 5%.
Amid the extended rally in gold prices, shares of Muthoot Finance and Manappuram Finance rose 4% and 2.7%, respectively. Meanwhile, capital market-linked stocks, including Groww, Motilal Oswal Financial Services and HDFC AMC, gained between 3% and 3.4%.
Other notable gainers included Coforge, Premier Energies, SBI Cards and Payment Services, Aditya Birla Real Estate, Sai Life Sciences and Piramal Finance.
Selling pressure deepens in select stocks
On the losing side, Himadri Speciality Chemicals continued to remain under pressure, with the stock falling another 6% to ₹704 apiece.
Aster DM Quality Care also remained weak, declining another 4.3% to its lowest level in nearly two months.
A day after scaling a fresh record high, Chennai Petroleum shares witnessed profit booking, falling 3.5% to ₹1,390 apiece. Syrma SGS Technology also saw profit booking at higher levels, with the stock declining 3.4% to ₹1,443.
Both PFC and REC posted losses of 2.8% and 2.6%, respectively. Among defence stocks, Bharat Dynamics ended the session 2.4% lower at ₹1,317 apiece.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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