Today's market opening: GIFT Nifty predicted to decline, Nikkei dropped 0.9%, with 7 indicators suggesting a similar trend at present.
Indian equities opened softly on August 20, 2025, with the GIFT Nifty indicating a potential start at 24,974, down 0.15%. However, the market rallied throughout the day, buoyed by domestic investor confidence and sectoral gains.
The IT and FMCG sectors led the charge, closing the day strongly higher. Despite some profit-booking pressure in other areas, the benchmark indices, Sensex and Nifty, closed the day with gains.
Domestic institutional investors provided strong support, buying Rs 2,261 crore in Indian equities on August 20. This investor confidence contrasted with foreign selling, with foreign investors selling Rs 634 crore from Indian equities on the same day.
The overall positive trend in Asian markets and stabilization in US markets helped sustain buying interest. However, some caution prevailed due to increased call writing and position unwinding ahead of expiry.
Crude oil and currency action also played a role in market sentiment. Although explicit oil price data for the day is not available, crude oil typically influences inflation expectations and input costs for Indian companies. Any significant movement would have affected market sentiment indirectly. Currency movements also factor into index performance, especially with major IT, pharmaceuticals, and export-oriented sectors moving on rupee-dollar fluctuations.
Geopolitical and trade concerns also impacted the market. For example, the upcoming US plan to impose a 50% tariff on Indian goods starting August 27 created some caution among traders. However, ongoing positive developments like large private equity investments in India’s digital infrastructure helped mitigate these concerns.
In other market developments, the current 10 grams of 22-carat gold rate is Rs 92,340, while the 18-carat gold rate stands at Rs 75,550. The 24-carat gold rate is Rs 1,00,740.
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Plastics gained 3% on Tuesday, while sectors like metals, infrastructure, and IT may have been in focus during the initial hours of trade. Aquaculture names led the market on Tuesday with an 8% rise, and auto ancillaries also added 3%. Sugar counters closed the day higher by 2%.
In the previous day's trading, the Nifty added 103.70 points, or 0.42%, to finish at 24,980.65. The US markets ended mixed, with the S&P 500 slipping 0.59%, the Nasdaq Composite tumbling 1.46%, but the Dow Jones Industrial Average inched up 10.45 points. Japan's Nikkei 225 dropped 0.93%, South Korea's Kospi slipped 1.52%, and Australia's S&P/ASX 200 began the session lower.
US benchmark WTI crude rose 0.43% to $62 a barrel, while global benchmark Brent crude edged up 0.30% to $65.99 a barrel.
[1] [Source 1] [2] [Source 2] [3] [Source 3] [4] [Source 4]
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