Closing Bell: Sensex Gains 287 pts, Nifty Above 24,300; IT, Pharma, PSU Banks Shine

Indian equity benchmarks ended the August 2026 series expiry session on a firm note, with the Sensex gaining 287 points and the Nifty closing above the 24,300 mark. The broader market witnessed selective buying, with IT, pharma, and PSU bank stocks emerging as the top gainers. The positive close came amid mixed global cues, as investors tracked fresh domestic data and awaited further policy signals.

According to market analysts, the expiry-day rally was largely driven by short covering in index heavyweights, particularly in the IT and pharma sectors. The Nifty IT index rose by 1.2%, while the Nifty Pharma index added 1.5%, with frontline stocks such as Sun Pharma and Dr Reddy's contributing significantly. PSU bank shares also outperformed, with the Nifty PSU Bank index climbing 2.1% on expectations of improved asset quality and credit growth.

The market breadth remained positive, with about 1,800 stocks advancing against 1,500 declines on the BSE. The midcap and smallcap indices also ended higher, gaining 0.6% and 0.4%, respectively. However, some profit booking was seen in the FMCG and auto sectors, which capped the upside for the headline indices.

Foreign institutional investors (FIIs) were net buyers in the cash market, while domestic institutional investors (DIIs) also supported the market. Analysts say that the positive momentum could continue if global cues remain stable and earnings growth sustains. However, they caution that valuations are stretched in some pockets, and volatility may increase ahead of the US Federal Reserve's policy meeting next month.

“The expiry-day rally indicates that investors are willing to hold long positions into the new series, but the sustainability of this move depends on the broader earnings trajectory and global liquidity conditions,” said a market strategist.

Among individual stocks, Reliance Industries, HDFC Bank, and Infosys were the top index contributors, while Bharti Airtel and Maruti Suzuki were the major laggards. The rupee traded flat at 83.45 against the US dollar, while the 10-year government bond yield eased slightly to 7.12%.

Looking ahead, market participants will focus on the upcoming quarterly earnings from blue-chip companies and the progress of the monsoon, which could influence rural demand and inflation. The next major trigger is the release of June quarter GDP data, scheduled for later this month. Analysts expect the economy to have grown at a steady pace, but any downward surprise could weigh on sentiment.

Overall, the market has shown resilience in recent sessions, and the Nifty has managed to hold above the 24,000 level. The immediate resistance is seen at 24,500, while support is placed at 24,100. For traders, it is advisable to maintain a stock-specific approach and avoid aggressive positions until clearer direction emerges.

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