The Indian equity markets ended higher on Tuesday, August 25, with the benchmark Sensex and Nifty closing in positive territory after a volatile trading session. Easing concerns over global crude oil prices, following expectations that US sanctions on Iran could be less stringent than anticipated, supported investor sentiment.
The BSE Sensex gained 160.83 points, or 0.21%, to close at 77,529.94, while the NSE Nifty 50 advanced 41 points, or 0.17%, to settle at 24,260.05.
Buying picked up during the final hours of trading, driven largely by short-covering ahead of the monthly derivatives expiry. Market sentiment was also supported by the decline in international crude oil prices, which eased concerns over inflation and input costs for Indian companies.
Sectoral Performance
The Nifty Consumer Durables index emerged as the top-performing sector, rising 0.76%. The healthcare sector gained 0.72%, while the pharma and PSU banking segments advanced 0.56% each.
However, several sectors ended in negative territory. The metal index declined 0.59%, while private banks fell 0.31%. The oil and gas and IT sectors also closed marginally lower, declining 0.06% each.
Top Gainers and Losers
Among the Nifty 50 constituents, Adani Enterprises, Max Healthcare, IndiGo and Apollo Hospitals were among the biggest gainers of the session.
On the other hand, Cipla, Hindalco, ONGC, Wipro and Tata Steel ended among the major laggards.
Crude Oil Prices Decline
Global crude oil prices witnessed a sharp decline amid expectations that US sanctions on Iran would be less restrictive than previously feared. Brent crude fell more than 3% to $89.26 per barrel, offering some relief to oil-importing economies such as India.
Lower crude prices are generally viewed positively for the Indian economy as they can help reduce pressure on the country’s import bill, inflation and corporate input costs.
Rupee Strengthens Against Dollar
The Indian rupee also strengthened during the session. The currency gained 34 paise against the US dollar to close at Rs 95.41.
In the commodities market, 24-carat gold remained at Rs 1,62,910 per 10 grams, while silver stood at Rs 2,42,550 per kilogram.
Market Outlook
Market experts maintained a cautiously optimistic outlook, noting that the broader trend remains positive as long as key technical support levels hold. Investors are likely to closely track global crude oil prices, currency movements, foreign institutional flows and upcoming corporate developments for further direction.
With the monthly derivatives expiry approaching, market volatility could remain elevated in the near term. However, sustained buying at lower levels and continued support from favourable global cues could keep the broader market trend bullish.
