The Indian equity market maintained its bullish trend today, as the benchmark indices closed higher for the sixth straight session, though the gains stood marginal enough. BSE Sensex closed at 82,000.71 points, up by 142.87 points (0.17%), and the NSE Nifty 50 closed minimally higher by 33.20 points (0.13%) at 25,083.75 points. This continuous rally indicates the high expectations of investors in the face of mixed global signals and continued homegrown economic reforms.
Major Market Points
Reliance Industries and ICICI Bank were the largest contributors to Sensex gains, collectively contributing 156 points to the index. Other blue-chip gainers were Bajaj Finance, Bajaj Finserv, and Larsen & Toubro, collectively providing support to the upbeat market close. On the negative side, stocks of PowerGrid, Eternal Enterprises, Hindustan Unilever, NTPC, and Tata Motors were under profit booking pressure and closed lower.
Midcap and smallcap spaces trailed slightly, with the BSE Midcap index closing lower by 222 points in the face of selective selling. The market breadth was neutral with advancing and declining stocks nearly in parity. Sectorally, healthcare and pharma outperformed while auto and FMCG stocks pared gains on profit booking.
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Domestic and Global Influences
Domestically, the optimism on the suggested GST rate rationalisation and other government measures created a positive background for the equities market. A Group of Ministers sanctioned a shift from today’s four-rate GST regime to a clean dual-rate system of 5% and 18%, strengthening the possibility of next-generation tax reforms. Further, a robust composite Purchasing Managers’ Index (PMI) for August indicated strong expansion in manufacturing and services, which further comforted investors.
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At the international level, markets are cautious in anticipation of the Federal Reserve’s forthcoming Jackson Hole symposium, expecting tempered hopes on future U.S. rate cuts. Geopolitical concerns and inflation fears globally continue to drive capital flows. India’s relatively softer retail inflation of 1.55% in July and aggressive policy actions have managed to sustain investor optimism.
Investor Sentiment and Outlook
Foreign institutional investors were net buyers, drawn to India’s strong fundamentals and growth prospects. Domestic retail participation has been supported through rising financial awareness and online brokerage platforms. Market analysts are moderately optimistic, advising buyers to hold diversified portfolios in the face of potential turbulence from international signals.
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In brief, on August 21, 2025, the Indian stock market showed strong resilience by continuing its winning run. Major blue-chip stocks underpinned the benchmark indices, along with government reforms and stable macroeconomic factors that fueled positive investor sentiment. Nevertheless, sectors sensitive to global events experienced varied responses, highlighting the dynamic market environment.
