The Indian stock market witnessed a positive trend on Wednesday, August 21, with the Nifty 50 closing in the green for the fifth consecutive session. Led by gains in shares of select FMCG and IT heavyweights such as ITC, Hindustan Unilever, and TCS, the Nifty 50 rose about 2.6 per cent in the last five sessions. This upward momentum was driven by positive global cues ahead of the Jackson Hole Economic Symposium, where US Fed Chair Jerome Powell is expected to provide hints about the trajectory of rate cuts.
The Federal Reserve’s Jackson Hole Economic Symposium, an annual conference, is scheduled from August 22 to 24 this year. Powell’s speech on Friday is eagerly awaited by investors. Additionally, the release of the minutes from the Fed’s last meeting, expected on Wednesday, will shed light on the possibility of rate cuts in September.
The Nifty 50 opened lower but managed to close higher at 24,770.20, with top contributors to the gains being ITC, Bharti Airtel, Hindustan Unilever, Titan, and TCS. On the other hand, HDFC Bank, ICICI Bank, Tata Steel, UltraTech Cement, and Power Grid were the top drags on the index.
The Sensex also opened lower but ended the day higher at 80,905.30, with the BSE Midcap and Smallcap indices outperforming the Sensex. The overall market capitalization of BSE-listed firms increased, making investors richer by about ₹2.4 lakh crore in a single session.
In terms of sectoral performance, the Nifty Realty index fell, while Nifty Consumer Durables, FMCG, Media, and Pharma sectors closed with healthy gains. Vinod Nair, Head of Research at Geojit Financial Services, highlighted the positive market sentiment supported by strong DII flows and a shift towards defensive sectors.
On the technical front, Shrikant Chouhan, Head of Equity Research at Kotak Securities, emphasized the bullish trend in the market, with potential for further upside. He suggested that as long as the index remains above 24,650, the market could rally towards 24,850-24,900.
Overall, the Indian stock market displayed a positive outlook on Wednesday, driven by global cues and expectations of rate cuts. Investors are advised to consult certified experts before making any investment decisions. Stay updated with the latest market news by downloading The Mint News App for daily updates.