Sensex jumps 226 pts; pharma shares gain

The key equity indices traded with minor gains in the mid-morning trade, extending their five-day rally on hopes of a potential GST rate cut. However, investors remained cautious ahead of the US Federal Reserve's annual symposium, awaiting signals on the future direction of interest rates.

The Nifty traded above the 25,100 level. Pharma shares advanced after declining for previous three consecutive trading sessions. Trading activity may be volatile today as markets brace for the weekly expiry of Nifty50 futures and options contracts.

At 11:30 ST, the barometer index, the S&P BSE Sensex, added 266.44 points or 0.33% to 82,121.70. The Nifty 50 index rose 69.70 points or 0.28% to 25,119.25.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index added 0.41% and the S&P BSE Small-Cap index rose 0.57%.

The market breadth was strong. On the BSE, 2,444 shares rose and 1,357 shares fell. A total of 198 shares were unchanged.

Economy:

India's private sector witnessed a sharp acceleration in business activity in August, with robust gains across both manufacturing and services, according to the latest HSBC Flash PMI data.

The HSBC Flash India Composite PMI Output Index surged to 65.2 in August, up from 61.1 in July, signaling one of the fastest rates of expansion in over a year.

The services sector led the upturn, with the HSBC Flash India Services PMI Business Activity Index climbing to 65.6, compared to 60.5 in July. This marks a significant boost in services output and reflects strong demand conditions and rising new business intakes.

Meanwhile, manufacturing also remained firmly in growth territory. The HSBC Flash India Manufacturing PMI Output Index rose to 64.2, up from 62.5 in July. The broader Manufacturing PMI, which includes new orders, employment, and inventories, edged up to 59.8, compared to 59.1 in the previous month.

India's eight core industries grew by 2% in July 2025 compared to the same month last year, according to data released by the Commerce and Industry Ministry on Wednesday. The growth was driven by higher production in steel, cement, fertilisers, and electricity.

These eight sectors'coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement, and electricity'account for 40.27% of the weight in the Index of Industrial Production (IIP), making them key indicators of overall industrial performance.

Steel, which holds the highest weight (17.92%) in the index, surged 12.8% in July, buoyed by strong demand from government infrastructure projects. Cement output rose 11.7%, reflecting robust construction and infrastructure activity. Fertiliser production increased 2%, supported by healthy kharif sowing and good monsoon rains. Electricity generation edged up by 0.5%.

However, several sectors saw declines. Coal production dropped 12.3% due to heavy monsoon rains. Crude oil and natural gas output fell by 1.3% and 3.2% respectively, while refinery production dipped 1%.

Cumulatively, core sector growth for April'July FY26 stood at 1.6% year-on-year. Steel and cement led the gains with growth of 8.5% and 8.9%, respectively.

The revised core sector growth for June 2025 stood at 2.2%, pointing to a steady industrial trend in the early months of the fiscal year.

IPO Update:

The initial public offer (IPO) of Mangal Electrical Industries received bids for 46,78,752 shares as against 52,53,301 shares on offer, according to stock exchange data at 11:18 IST on Thursday (21 August 2025). The issue was subscribed 0.89 times.

The initial public offer (IPO) of Patel Retail received bids for 23,77,43,450 shares as against 78,15,612 shares on offer, according to stock exchange data at 11:15 IST on Thursday (21 August 2025). The issue was subscribed 30.42 times.

The initial public offer (IPO) of Shreeji Shipping Global received bids for 12,86,82,222 shares as against 1,14,08,600 shares on offer, according to stock exchange data at 11:18 IST on Thursday (21 August 2025). The issue was subscribed 11.28 times.

The initial public offer (IPO) of Gem Aromatics received bids for 4,83,59,064 shares as against 97,82,363 shares on offer, according to stock exchange data at 11:18 IST on Thursday (21 August 2025). The issue was subscribed 4.94 times.

The initial public offer (IPO) of Vikram Solar received bids for 33,59,55,870 shares as against 4,53,61,650 shares on offer, according to stock exchange data at 11:18 IST on Thursday (21 August 2025). The issue was subscribed 7.41 times.

Buzzing Index:

The Nifty Pharma index rose 0.88% to 22,039.40. The index shed 0.50% in the previous three trading sessions.

Mankind Pharma (up 3.86%), Dr Reddys Laboratories (up 1.25%), Cipla (up 1.24%), Alkem Laboratories (up 1.13%) and Glenmark Pharmaceuticals (up 1.1%), Zydus Lifesciences (up 0.99%), Lupin (up 0.91%), Gland Pharma (up 0.7%), J B Chemicals & Pharmaceuticals (up 0.63%) and Sun Pharmaceutical Industries (up 0.62%) added.

Stocks in Spotlight:

Jupiter Wagons surged 10.49% after the company said that its material unlisted subsidiary, Jupiter Tatravagonka Railwheel Factory, has received a letter of intent (LoI) for the supply of wheelsets for the Vande Bharat train.

Nazara Technologies fell 7.50% after the Lok Sabha passed the Online Gaming Bill, 2025, which bans real money online games citing risks of gambling addiction, money laundering and financial fraud.

Global Markets:

Asian markets were broadly mixed on Thursday as investors braced for three days of potentially market-moving news from the Federal Reserve's annual symposium in Jackson Hole.

Central bankers from around the world will attend the event, which begins later in the day, although the key focus will be Fed Chair Jerome Powell's speech on Friday as traders look for clues on the chances of a September rate cut.

Overnight stateside, two of the three key benchmarks ended the session on Wednesday in declines as tech stocks dragged the market lower.

The broad market S&P 500 index slipped 0.24% to close at 6,395.78, while the tech-heavy Nasdaq Composite lost 0.67% and settled at 21,172.86. Wednesday marked a fourth day of losses for the S&P 500 and a second negative session for the Nasdaq.

Meanwhile, the Dow Jones Industrial Average was the outlier, adding 16.04 points, or 0.04%, and settling at 44,938.31.

Minutes from the Fed's July gathering released yesterday, when policymakers voted to keep rates steady, suggested that Fed Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller were alone in pushing for a rate cut at the meeting.

Fed Chair Powell had said he is reluctant to cut rates because of expected tariff-driven price pressures this summer.

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