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Markets trade positive in late afternoon session
Aug-21-2025

Indian equity markets continue to trade well above the unchanged lines in late afternoon session. Investors’ sentiments remained upbeat as India’s flash Purchasing Managers’ Index (PMI) data showed that India’s private sector economy recorded its fastest growth since the start of survey data in December 2005 in August. The rapid upturn in business activity was driven by a surge in sales volumes, with total new order intakes rising at one of the quickest rates on record. However, gains remained capped as selling by Foreign Institutional investors (FIIs) continued to weigh on trading sentiments.

On the global front, Asian equity markets were trading mixed as investors awaited US Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium for more cues on the future rate trajectory. European equity markets were trading lower after HCOB's latest Purchasing Managers' Index (PMI) Survey showed a decline in services sector activity.

The BSE Sensex is currently trading at 82143.52, up by 285.68 points or 0.35% after trading in a range of 81921.22 and 82231.17. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.14%, while Small cap index was up by 0.22%.

The top gaining sectoral indices on the BSE were Healthcare up by 0.81%, Realty up by 0.54%, Oil & Gas up by 0.46%, Industrials up by 0.46% and Energy up by 0.42%, while Power down by 0.66%, FMCG down by 0.45%, Utilities down by 0.38%, Auto down by 0.22% and PSU down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 1.43%, Bajaj Finserv up by 1.30%, Reliance Industries up by 1.16%, ICICI Bank up by 1.03% and Larsen & Toubro up by 0.98%. On the flip side, Power Grid Corporation down by 1.21%, Eternal down by 1.21%, NTPC down by 0.86%, Hindustan Unilever down by 0.75% and Adani Ports & SEZ down by 0.61% were the top losers.

Meanwhile, India’s flash Purchasing Managers’ Index (PMI) data showed that India’s private sector economy recorded its fastest growth since the start of survey data in December 2005 in August. The rapid upturn in business activity was driven by a surge in sales volumes, with total new order intakes rising at one of the quickest rates on record. Hiring picked up, with jobs growth accelerating, while firms also registered their most optimistic assessment of the year-ahead outlook since March. The HSBC Flash India Composite Output Index - a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors - rose by over four points in August 2025 to 65.2, from 61.1 in July 2025, signalling a rapid expansion in private sector business activity that was the quickest on record. The latest survey data also revealed a strong degree of pricing power among companies as the rate of output charge inflation jumped to a 12-and-a-half-year high.

The data report noted that the HSBC Flash India Manufacturing PMI - a weighted average of the New Orders, Output, Employment, Suppliers’ Delivery Times and Stocks of Purchases indices - ticked up to 59.8 in August, from 59.1 in July, indicating a faster improvement in factory operating conditions across India. In fact, the index registered its highest reading since January 2008. There was considerable strength in demand for Indian goods and services in August. Both manufacturers and service providers saw new order intakes rise at sharp and accelerated rates on the month, underpinning a near survey-record overall expansion. Export markets supported August's uplift in overall new business, underlying survey data showed, with new business from abroad increasing at the quickest pace since the composite data were first published in 2014. 

As for pricing trends, the latest survey data indicated an intensification of inflationary pressures across India's private sector. Input costs rose markedly amid reports of higher wage bills (particularly at services companies) and greater raw material prices. Notably, charges set by surveyed businesses were raised to the sharpest extent since February 2013. Looking ahead, private sector companies in India anticipated further growth in business activity over the next 12 months. In fact, expectations improved strongly on the month and were their most optimistic since March. Positive forecasts were underpinned by the demand outlook, anecdotal evidence revealed. Stronger sentiment was seen at both manufacturing and services companies.

The CNX Nifty is currently trading at 25124.50, up by 73.95 points or 0.30% after trading in a range of 25054.90 and 25153.65. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy's Laboratories up by 2.75%, Cipla up by 2.40%, Bajaj Finance up by 1.37%, Bajaj Finserv up by 1.28% and SBI Life Insurance Company up by 1.22%. On the flip side, Bajaj Auto down by 1.44%, JIO Financial Services down by 1.37%, Coal India down by 1.33%, Power Grid Corporation down by 1.30% and Eternal down by 1.21% were the top losers.

Asian equity markets were trading mixed; Taiwan Weighted added 336.69 points or 1.41% to 23,962.13, Straits Times rose 5.22 points or 0.12% to 4,224.76, KOSPI increased 11.65 points or 0.37% to 3,141.74 and Shanghai Composite strengthened 4.89 points or 0.13% to 3,771.10, while Nikkei 225 slipped 262.55 points or 0.62% to 42,626.00, Hang Seng declined 96.94 points or 0.39% to 25,069.00 and Jakarta Composite plunged 74 points or 0.94% to 7,869.83.

European equity markets were trading lower; UK’s FTSE 100 decreased 12.69 points or 0.14% to 9,275.45, France’s CAC fell 37.03 points or 0.46% to 7,936.00 and Germany’s DAX lost 29.57 points or 0.12% to 24,247.40.

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