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Sensex, Nifty extend gains for 5th straight day
Aug-20-2025

Extending their winning streak to a fifth straight session, Indian equity benchmarks ended with gains on Wednesday, on heavy buying in IT, TECK and FMCG shares. Easing tensions over trade tariffs and hopes of peace between Russia and Ukraine enthused investors.  

Some of the important factors in today’s trade: 

Export curbs ease positive sign, India must cut reliance amid $100 billion trade gap: The Global Trade Research Initiative (GTRI) has said that China's decision to ease restrictions on exports of rare-earth minerals and fertilisers to India is a positive signal, but India must work to reduce its dependence on the neighbouring country, with which it runs an alarming $100 billion trade deficit. 

Proposed 2-tier GST structure could lower effective tax rate, boost fiscal revenues over longer term: S&P Global Ratings Director YeeFarn Phua has said that the proposed 2-tier Goods and Services Tax (GST) structure could lower effective taxation rate and boost fiscal revenues over the longer term. 

Investment hike for 8% GDP growth: In order to achieve the ambitious growth target of 8%, parliamentary panel has pitched for raising the investment rate from 31% of the Gross Domestic Product (GDP) to 35%. Besides, the Standing Committee on Finance has urged the government to maintain sustainable, growth-oriented energy policies that prioritise affordability and efficiency while balancing climate commitments with economic and social objectives. 

Rupee rises against US Dollar: Indian rupee pared initial losses and settled higher against the US dollar, on the back of a rise in risk appetite in global markets. Upbeat domestic market sentiments also supported the local unit.

Global front: European markets were trading mostly in green amid rising optimism about a potential Russia-Ukraine peace deal. Asian markets ended mixed as investors locked in profits in tech stocks amid concerns over valuations and reports of potential U.S. government equity stakes in major chipmakers. 

Finally, the BSE Sensex rose 213.45 points or 0.26% to 81,857.84 and the CNX Nifty was up by 69.90 points or 0.28% to 25,050.55. 

The BSE Sensex touched high and low of 81,985.62 and 81,494.50 respectively. There were 15 stocks advancing against 15 stocks declining on the index.  

The broader indices ended in green; the BSE Mid cap index rose 0.39%, while Small cap index was up by 0.30%.

The top gaining sectoral indices on the BSE were IT up by 2.61%, TECK up by 2.22%, FMCG up by 1.36%, Realty up by 1.04% and Telecom up by 0.68%, while Bankex down by 0.33%, Healthcare down by 0.21%, Oil & Gas down by 0.16%, Energy down by 0.15% and Auto down by 0.08% were the top losing indices on BSE.

Meanwhile, Fitch Ratings has said India-based corporates have low direct exposure to US tariffs, but sectors that are currently unaffected, including pharmaceuticals, could be hit by further US tariff announcements. The US has imposed a 25 per cent 'reciprocal' tariff on India with effect from August 7, 2025, and an additional 25 per cent levy will be effective August 27, as a penalty for Russian oil imports.

At 50 per cent, India is subject to maximum tariff among Asian economies on exports to the US. It said the risk of second-order effects from existing tariffs is also rising. A US-India trade deal, if secured, would reduce these risks. Russian crude accounts for about 30-40 per cent of crude imports for Indian oil marketing companies (OMCs), with its discounted price supporting their profitability. It currently assumes a minimal direct tariff impact on Indian IT service companies and domestically focused sectors such as upstream and downstream oil and gas, cement and building materials, engineering and construction, telecoms, and utilities.

It stated ‘However, if US tariffs are sustained at levels significantly higher than in other Asian markets, we see moderate downside risks to our projection that the economy will grow by 6.5 per cent in FY26. This would weigh on the operating performance of more Indian companies.’

The CNX Nifty traded in a range of 25,088.70 and 24,929.70. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Infosys up by 3.83%, TCS up by 2.61%, Nestle up by 2.55%, Hindustan Unilever up by 2.43% and NTPC up by 2.00%. On the flip side, Bharat Electronics down by 2.17%, Shriram Finance down by 1.64%, Bajaj Finance down by 1.62%, Tata Motors down by 1.46% and Indusind Bank down by 0.95% were the top losers.

European markets were trading mostly in green; UK’s FTSE 100 increased 24.96 points or 0.27% to 9,214.18 and France’s CAC rose 5.12 points or 0.06% to 7,984.20, while Germany’s DAX lost 82.07 points or 0.34% to 24,341.00.

Asian markets ended mixed on Wednesday ahead of the release of minutes from the Fed's July meeting later in the day. Investors were also eyeing ongoing Ukraine peace talks and looked ahead to Fed Chair Jerome Powell's Jackson Hole speech due this week for more clarity on September rate cuts. Meanwhile, investors locked in profits in technology shares on concerns over valuations and reports of potential US government equity stakes in major chipmakers. Chinese shares gained as the PBoC kept its benchmark loan prime rate unchanged as expected despite recent weak economic data. Hong Kong shares rose even after the Trump administration said it was targeting more imports of Chinese goods, including steel, copper and lithium, for high-priority enforcement over alleged human-rights abuses involving the Uyghurs. Seoul shares declined as big-cap technology shares tracked overnight losses of US technology giants. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,766.21

38.92

1.03

Hang Seng

25,165.94

43.04

0.17

Jakarta Composite

7,943.82

80.87

1.03

KLSE Composite

1,588.21

-2.03

-0.13

Nikkei 225

42,888.55

-657.74

-1.51

Straits Times

4,219.54

3.35

0.08

KOSPI Composite

3,130.09

-21.47

-0.69

Taiwan Weighted

23,625.44

-728.06

-3.08
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