Where is the market headed?
The global and local markets saw a mix of optimism and cautious moves on the 19th of August. One of the major developments was the meeting between the President of Ukraine, the American President, and EU leaders. While no breakthrough has been achieved yet, the progress in peace talks has brought relief across the world. On the domestic front, the GST reforms continue to remain in focus. Foreign institutional investors had shown buying interest in the last session, and today’s numbers are awaited.
Meanwhile, China has surprisingly opened its arms towards India, promising trade in rare earth minerals and fertilizers. This has created new opportunities that were earlier unthinkable. Adding to that, the Indian Prime Minister held a meeting with ministers and seems to have drawn up a fresh 100-day agenda, signaling a reboot of focus towards growth. This shift in attention towards the economy is being seen as a positive step.
Market Overview
The market showed a stable performance through the day. Nifty closed at 24,980, just about 700 points away from its recent highs in June. This signals that the index is holding strong and could be preparing for an upward move.
Nifty Next 50
The Nifty Junior was stronger, rising 0.75%.
Nifty Mid and Small Cap
Midcaps gained 0.94% and Small caps were up by 0.76%.
Bank Nifty
Bank Nifty remained sluggish, adding only 0.23%, and continues to be the weakest part of the market.
GOLD
Gold also saw some pressure as the USD weakened against the INR, pulling the price down to about ₹9,900 per gram.
Advance Decline Ratio
The advance-decline ratio gave a positive signal with 363 advances against 135 declines, showing broad market strength.
Heat Maps
On the Nifty heatmap, Reliance Industries led the rally with a 2.78% rise after Jio announced a 20% hike in entry-level tariffs. Tata Motors also surged 3.5%, while Bajaj Auto, Hero Motors, Maruti, Nestle, and ITC added to the momentum. On the other hand, LT, Power Grid, Mahindra, and HDFC Bank slipped slightly. Bajaj Holdings in the Nifty Next 50 took a big hit, falling 5%, but gains in Hyundai, Dmart, Vedanta, and Adani Green balanced the mood.
Movers Of The Day
Reliance’s move was the highlight as tariff hikes are expected to lift ARPU by 3-5%, giving strong tailwinds to the stock.
Vedanta too gained nearly 3% on news of a second interim dividend due on August 21.
Sectoral Overview
Sector-wise, Oil and Gas led with Reliance’s support, while Media, Auto, FMCG, and PSU banks also performed well. Pharma and Defense stocks were weak, as global peace talks reduced interest in defensive counters despite fresh order announcements in the defense sector.
Sector of the Day
Nifty Oil & Gas Index
Oil and Gas stocks displayed solid strength. Companies like Petronet LNG, Reliance, HPCL, BPCL, and Gujarat Gas moved higher, pushing the sector above key pivot levels. This strength in energy counters gave a boost to the overall market sentiment, showing that while some sectors like defense may be cooling off due to global developments, others like oil and gas continue to fuel the rally.
Nifty Ind Defence Index
While most sectors were showing strength, the defense sector struggled to hold ground. The ongoing peace talks across the world seemed to take away investor interest from defense stocks, leading to a noticeable dip. Even though new orders were announced and infrastructure status was highlighted for several defense companies, the sector could not find momentum. Stocks like BDL, Data Pattern, Solar, GRSE, and Hindustan Aeronautics all moved lower, reflecting the cautious mood in this space.
Tweets Of the Day
On the global front, the crypto space remained in news. Ethereum shorts reached their highest levels in history, raising concerns about further declines. This reinforced the idea that crypto markets are dominated by large players, often called whales, who largely control the price direction. The lack of transparency and regulation in crypto remains a concern, making it an unpredictable space for retail investors.
Back home, the renewed push from the government towards growth is being taken positively. History has shown that India often takes bold steps only when external pressures build up. With focus returning on GST and internal growth, many are hopeful that meaningful outcomes may follow.
