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Sensex Surges Over 1,100 Points to 81,700; Nifty Climbs 380 Points, Auto and Realty Stocks Lead the Rally

On the first trading session of the week, Monday, August 18, Indian equity markets witnessed a strong upward momentum. The Sensex surged nearly 1,100 points, trading firmly around the 81,700 mark, while the Nifty gained more than 380 points (up 1.15%) to touch the 24,950 level. The rally was broad-based, with nearly all sectoral indices closing in the green, led by auto, realty, and consumer durables.

Sensex and Nifty Rally Broad-Based

All 30 constituents of the Sensex recorded gains in today’s session. Among the top performers, Maruti Suzuki surged nearly 5%, fueled by expectations of robust festive-season demand. Ultratech Cement, Trent, and Tata Steel also contributed to the rally, each gaining between 1% and 3%.

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Similarly, the Nifty 50 showed a strong performance, with 47 out of its 50 stocks advancing. This indicates a broad-based rally, underlining strong investor confidence and institutional support.

Sectoral Indices in Green

The NSE sectoral indices reflected robust gains across the board. The Nifty Auto index climbed 3.37%, driven by strong showings from Maruti Suzuki, Tata Motors, and Mahindra & Mahindra. The Consumer Durables index rose 2.86%, while Financial Services jumped 1.62%. Realty, banking, and metal indices also gained about 1.5% each, contributing significantly to market optimism.

This broad-based rise suggests that the rally was not restricted to a few sectors but was rather fueled by multiple growth stories across industries.

Global Market Trends Influence

Global cues provided mixed but supportive signals. In Asia, Japan’s Nikkei gained 0.87% to close at 43,757, while South Korea’s Kospi slipped 1.23% to 3,185. Hong Kong’s Hang Seng index rose 0.42% to 25,375, and China’s Shanghai Composite advanced 1.18% to 3,740.

In the U.S., Wall Street closed on a mixed note on August 14. The Dow Jones Industrial Average gained 0.078% to settle at 44,946. However, the Nasdaq Composite slipped 0.40% to 21,623, while the S&P 500 inched up 0.29% to close at 6,450.

These global indicators suggested resilience, but volatility in tech-heavy Nasdaq highlighted investor caution amid ongoing macroeconomic uncertainties.

Institutional Investor Activity

Domestic Institutional Investors (DIIs) played a pivotal role in supporting the Indian markets. On August 14, DIIs made net purchases worth ₹3,895.68 crore. In contrast, Foreign Institutional Investors (FIIs) were net sellers, offloading stocks worth ₹1,926.76 crore in the cash segment.

So far in August, FIIs have sold shares worth ₹24,191.51 crore. However, DIIs have absorbed the selling pressure, making net purchases worth ₹55,795.28 crore during the same period. In July, FIIs had sold a massive ₹47,666.68 crore worth of shares, while DIIs had once again stepped in with strong net buying of ₹60,939.16 crore.

This clear divergence highlights how domestic investors are increasingly driving market stability, even in the face of heavy foreign selling.

Recent Market Trends

Last week, the stock markets also closed positively. On August 14, the Sensex had ended 58 points higher at 80,598, while the Nifty settled 12 points higher at 24,631. However, the broader market had shown mixed signals, with 13 Sensex stocks rising and 17 declining.

Zomato, Infosys, and Asian Paints were among the gainers, while Tata Steel, Tech Mahindra, Adani Ports, and Bharat Electronics Ltd. (BEL) were among the laggards. On the Nifty 50, 21 stocks advanced while 29 declined. Sector-wise, NSE’s Metal, Realty, and Oil & Gas indices had slipped, while IT, Pharma, Banking, and Consumer Durables indices closed with gains.

What is Driving the Rally?

The current surge in the markets is being attributed to a combination of factors:

Global optimism: Positive cues from U.S. and Asian markets, despite some volatility.
Institutional support: DIIs have provided strong backing, offsetting persistent FII outflows.
Sectoral strength: Auto, realty, and financials are witnessing renewed demand, driven by expectations of festive season consumption and housing momentum.
Policy signals: Hints of economic reforms, including potential GST framework changes, are boosting investor sentiment.

Outlook Ahead

Market experts believe that if domestic inflows continue to remain strong and global cues remain broadly supportive, the Sensex and Nifty could extend their rally further. However, caution persists due to high valuations, geopolitical tensions, and potential interest rate decisions from the U.S. Federal Reserve.

For now, the Indian markets are riding on strong momentum, with investors enjoying broad-based gains. The rally in auto and realty stocks, in particular, has injected a fresh wave of optimism among traders and long-term investors alike.