Mumbai, Aug 26: Indian equity indices began the day with gains, buoyed by positive developments in the US market. This optimism followed Federal Reserve Chair Jerome Powell's dovish remarks at the Jackson Hole symposium, which suggested a potential rate cut in September. By 9:45 a.m., the Sensex was up 529 points, or 0.65%, at 81,615, while the Nifty had gained 146 points, or 0.59%, to reach 24,969.
The broader market also showed a bullish trend, with the Nifty Midcap index increasing by 348 points, or 0.60%, to 58,904, and the Nifty Smallcap index rising by 105 points, or 0.55%, to 19,184.
Sectoral indices reflected broad-based gains, with notable increases in Auto, IT, PSU Bank, Financial Services, Pharma, Metal, and Energy sectors. Conversely, the FMCG sector was the only one showing a decline on the NSE.
Market experts note that Powell’s explicit indication of the beginning of a rate-cutting cycle could bolster the ongoing global stock market rally. Deviating from his typically cautious stance, Powell’s clear statement that “the time has come for policy to adjust” and “the direction of travel is clear” is expected to act as a “Powell put,” similar to the “Greenspan put” that supported US equities during Alan Greenspan’s tenure.
In terms of individual stocks, the top gainers on the Sensex include Wipro, Tech Mahindra, TCS, HDFC Bank, Infosys, Power Grid, Axis Bank, HCL Tech, Tata Motors, and Tata Steel. On the other hand, ITC, Sun Pharma, Maruti Suzuki, JSW Steel, and UltraTech Cement are among the top losers.
