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Indian Markets Show Steady Gains with Sector Divergence

By Mandar in Indian Market Insights —

Indian Stock Market Overview - August 21, 2025

Indian stock markets extended their rally for the sixth straight day on August 21, 2025, although the Nifty index couldn't sustain above 25,100 points due to profit-taking.

  • The Sensex concluded at 82,000.71, up 142.87 points (0.17%).
  • The Nifty increased by 33.20 points (0.13%), closing at 25,083.75.
  • Investors are displaying caution, anticipating US economic data releases and central bank meetings.

Sector Performance

  • Pharma Sector:** Led gains, rising 1%, driven by stocks like Dr Reddy's Laboratories and Cipla.
  • Realty Index:** Saw moderate gains, approximately 0.4%.
  • Auto and FMCG Sectors:** Declined, with auto down 0.3% and FMCG down 0.6%, reflecting some profit-taking.

Notable Stock Movements

  • Jupiter Wagons: Rose 3% after securing a Letter of Intent worth Rs 215 crore.
  • Kaveri Seeds: Gained nearly 6% following an upgrade by IIFL.
  • Ola Electric: Fell sharply by 8.5%.
  • Nazara Technologies: Hit a 15-week low.

Nifty 50 Index Reshuffle

Market participants are focusing on the imminent Nifty 50 index reshuffle scheduled for August 22.

  • Max Healthcare and InterGlobe Aviation (IndiGo) are anticipated to be included.
  • IndusInd Bank and Hero MotoCorp might be excluded.
  • This rebalancing, taking effect on September 29, is expected to significantly impact fund flows, especially for passive funds tracking the benchmark.

Nifty Bank Index

The Nifty Bank index experienced slight gains during the pre-market session, continuing its recent positive trend, despite some monthly losses.

Market Outlook

The Indian markets indicate a steady upward trend, but potential short-term consolidation could occur as investors assess upcoming macroeconomic data and index adjustments.

  • Immediate support for Nifty is observed around 25,000 points.
  • The subsequent resistance level is near 25,300 points.