Market Wrap

Indian equities opened the week on a bullish note after the long weekend, with Nifty surging over 300 points and briefly retesting the 25,000 mark, powered by Prime Minister Modi’s Independence Day GST reform announcement. The move sparked heavy buying in autos and consumer durables, with the Auto index jumping more than 4%. While profit-booking pared intraday gains, Nifty still settled nearly 1% higher at just under 24,900. On the global front, U.S. markets ended last week largely flat, but optimism around the Trump–Putin meeting helped Asian and European peers trade steady.

What's Ahead

Investors will now focus on the domestic fallout of GST reforms, with expectations that stronger consumption demand could add 50–70 basis points to GDP growth and energize corporate earnings, particularly in autos, consumer durables, and real estate. On the global side, U.S. bond yields, key economic data releases, and central bank commentary remain crucial, while fresh headlines around U.S.–Russia relations could inject volatility into markets.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

Nifty 50 extended gains with a strong close at 24,876.95 (+1%), led by auto majors Maruti (+8.87%) and HeroMotoCorp (+5.99%), alongside financial heavyweights Bajaj Finance (+5.10%) and Bajaj Auto (+4.49%). While the index briefly crossed the psychological 25,000 mark intraday, it settled slightly lower as IT counters like Tech Mahindra (-1.09%) and L&T (-1.01%) weighed on sentiment. Momentum indicators turned supportive with RSI crossing 50 for the first time in August, signaling renewed buying strength. Going forward, immediate support lies at 24,715/24,615, while resistance is seen at 25,038/25,138. A sustained breakout above 25,200 could set the stage for a rally towards 25,500–25,700.

Bank Nifty

Bank Nifty closed at 55,734.9 (+0.71%), with 11 of 12 stocks in the green as IndusInd Bank (+2.31%), IDFC First Bank (+1.69%), and AU SFB (+1.32%) led the rally. Heavyweights HDFC Bank (+0.70%) and ICICI Bank (+0.63%) also lent support, while SBI (-0.04%) was the sole drag. The index broke past its recent consolidation zone of 55,000–55,500 and tested 56,000 but failed to sustain above it. Technically, the structure remains bullish with immediate support at 55,381/55,162 and resistance at 56,089/56,308. A firm close above 56,300 could open the door to 57,000+ in the near term.

Sensex

Sensex surged 676 points (+0.84%) to 81,273.75, supported by broad-based buying in consumer and financial stocks. Maruti Suzuki (+8.87%) and Bajaj Finance (+5.02%) were standout performers, while Reliance (+0.74%) and HDFC Bank (+0.70%) added stability. However, weakness in L&T (-1.01%), Tech Mahindra (-1.09%), and ITC (-1.47%) capped further upside. Market breadth was positive with 20 of 30 constituents ending higher, reflecting healthy momentum. On the technical front, support levels are placed at 80,796/80,500, while resistance is seen at 81,752/82,048. A breakout above 82,000 could trigger an extended rally.

FinNifty

FinNifty climbed 275.65 points (+1.05%) to close at 26,609.1, as financials continued to lead the broader market. Bajaj Finance (+5.10%), HDFC AMC (+4.17%), and Cholamandalam Finance (+4.06%) spearheaded gains, while HDFC Bank (+0.70%) and ICICI Bank (+0.63%) added to the strength. Selling pressure was limited to SBI (-0.04%) and PFC (-1.80%). The advance-decline ratio remained strongly in favor of bulls, highlighting robust sentiment in the sector. From a technical perspective, support levels are pegged at 26,420/26,300, while resistance is seen at 26,750/26,900. Sustained momentum above 26,900 could accelerate gains towards 27,200.