Indian Stock Market Summary – August 21, 2025

The Indian stock market extended its winning streak for the sixth consecutive session on Thursday, August 21, 2025. Despite mixed global cues, domestic equities showed strong resilience, with benchmark indices closing in positive territory. This marks the longest rally in over two months, reflecting steady investor confidence and selective sectoral buying.

Key Market Indices Performance

  • BSE Sensex: Closed at 82,001, up 143 points (+0.17%).
  • NSE Nifty 50: Ended at 25,084, gaining 33 points (+0.13%).

Over the last six sessions, the Sensex has surged by 1,765 points, underscoring sustained momentum in frontline stocks.

Market Movers

  • Top Gainers: Reliance Industries and ICICI Bank were major contributors, each rising nearly 1% and together adding 156 points to the Sensex. Other gainers included Bajaj Finance, Bajaj Finserv, and Larsen & Toubro.
  • Top Losers: Eternal, Power Grid Corporation, NTPC, Adani Ports, and Hindustan Unilever slipped around 1.5% each, dragging on index gains.

Sectoral Trends

  • Outperformers: Nifty Healthcare and Nifty Pharma saw strong buying interest, supported by defensive positioning in pharma and healthcare stocks.
  • Underperformers: Nifty FMCG and Nifty PSU Bank witnessed profit booking and closed in the red.
  • Broader Markets: Nifty MidCap 50 fell 0.5%, while Nifty SmallCap 50 dropped 0.4%, reflecting mixed sentiment beyond large-cap stocks.

Market Sentiment & Global Factors

Investor sentiment was buoyed by expectations of a possible GST rate cut. The Group of Ministers has proposed replacing the current four-rate structure with dual slabs of 5% and 18%, a move expected to improve efficiency and ease of doing business.

Globally, traders are awaiting the Jackson Hole Symposium for fresh cues on central bank policies. The narrow trading range on F&O expiry day suggested cautious profit booking alongside hope for positive signals from global markets.

Bond yields and fiscal concerns around GST rationalization remain key variables that investors are monitoring closely.

Trading Highlights

  • BSE and Angel One stocks fell nearly 7% after SEBI signaled possible longer expiry cycles for futures and options contracts.
  • Foreign Portfolio Investors (FPIs) were net sellers worth approximately ₹1,100 crore.
  • Domestic Institutional Investors (DIIs) continued to support the market, with net purchases of around ₹1,806 crore.

Expert Views

Analysts suggest that strong buying in blue-chip stocks remains the key driver of this rally. While global uncertainties persist, India’s reform-driven outlook, steady consumption trends, and muted inflation are supporting equities. Experts also anticipate the possibility of another rate cut by the Monetary Policy Committee (MPC) if inflation continues to remain under control.

Conclusion

The Indian equity market closed higher for the sixth straight session on August 21, 2025, with strong buying in heavyweights offsetting weakness in select sectors. Investors are cautiously optimistic, balancing domestic policy reforms with global economic signals.

📌 Disclaimer

This article is for informational and educational purposes only and should not be considered financial or investment advice. Stock market investments are subject to risks, and readers are encouraged to consult a qualified financial advisor before making any investment decisions.

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