Stock Market Today: Sensex Jumps to 82,146, Nifty 50 Stays at 25,120

Optimism builds on GST cut hopes and rating upgrades, while mid-cap action keeps investors excited

The Indian stock market shows steady momentum as both the Nifty 50 and the Sensex continue to trade higher. On August 21, 2025, the Nifty 50 hovers around 25,120 while the Sensex moves above 82,100. The movement is not a sharp rally, but a continuation of gains that have been seen for six consecutive trading sessions. This consistent upward trend suggests that investor sentiment remains strong, with optimism building around policy changes and corporate performance.

Financial Stocks Provide the Push

The main push for the indices comes from financial and insurance companies. Banking and insurance shares rise between 1 and 3 percent during the day. The optimism comes from the news that a group of state ministers has recommended exempting health and life insurance premiums from Goods and Services Tax. This move, if approved, could make insurance products more attractive and affordable, leading to higher sales for insurers. Companies like HDFC Life, SBI Life, and ICICI Prudential benefit immediately, helping the overall financial index climb higher.

Reliance Industries Adds Strength

Reliance Industries plays a central role in lifting the broader market. Its stock gains more than 1 percent, which boosts the oil and gas index by almost 1 percent as well. Reliance often carries significant weight in both Nifty and Sensex, and even a small rise in its stock price provides major support to the overall benchmarks. The company’s performance, combined with strong moves in banking and insurance, keeps the market firmly in positive territory.

Policy Changes Create Optimism

The possibility of a cut in Goods and Services Tax remains one of the biggest reasons behind the current rally. A reduction in GST would ease pressure on both companies and consumers. Lower tax rates can improve profit margins for firms and increase consumer demand, creating a win-win scenario. Investors also remain encouraged by the recent upgrade in India’s sovereign credit rating by an international agency. The upgrade signals stronger confidence in the country’s economy, making it more attractive for global investors.

Weakness in the IT Sector

Despite the overall gains, the information technology sector faces mild pressure. Shares of IT companies slip between 0.2 and 0.4 percent. The weakness comes as global investors await guidance from the US Federal Reserve at the Jackson Hole symposium. Technology companies in India earn a large part of their revenue from overseas clients, especially in North America. Any uncertainty around US interest rate policy can affect global spending on IT services, which reflects immediately on Indian IT stocks.

Mid-Cap and Small-Cap Action

Beyond the large benchmarks, there is strong action in mid-cap and small-cap stocks. Jupiter Wagons surges by more than 12 percent after securing a major order, which boosts investor confidence in the company’s growth prospects. Prince Pipes climbs more than 6 percent after analysts issue a favorable investment rating. These movements show that smaller companies remain attractive to investors who are willing to take higher risks for potentially higher returns.

RailTel and Other Stock-Specific Moves

RailTel Corporation also catches attention with a gain of around 4 percent. The rise comes after the company secures fresh orders worth about 50 crore rupees, including a significant contract from Kerala’s IT Mission for data center operations. Such developments highlight how specific news can move individual stocks regardless of the broader market trend. Other companies like IndusInd Bank, India Cements, Godrej Properties, Clean Sciences, and Exide Industries also see movement as investors respond to company-specific updates.

Role of Foreign and Domestic Investors

One interesting factor in the current market rally is the contrast between foreign and domestic investors. Foreign portfolio investors record an outflow of about 1,100 crore rupees, marking the third consecutive session of selling. On the other hand, domestic institutional investors, which include mutual funds and insurance companies, continue to act as strong buyers. They purchase more than 1,800 crore rupees worth of shares, extending a buying streak that has lasted for more than thirty sessions. This strong domestic support is one reason why the market continues to rise despite selling pressure from foreign funds.

The Global Backdrop and Risks

Global factors continue to play an important role in shaping sentiment. Investors worldwide are watching the annual Jackson Hole symposium in the United States, where the Federal Reserve Chair is expected to give guidance on interest rate policy. There is speculation that the Fed may signal a possible rate cut in September. If such an indication comes, it could boost global liquidity and encourage more foreign inflows into emerging markets like India. However, if the Fed maintains a cautious stance, volatility could increase.

Stocks Under Analysts’ Radar

Apart from the larger moves, analysts continue to highlight specific opportunities in the market. Some recommendations focus on value stocks with low price-to-earnings growth ratios, including companies like Natco Pharma, Sagility India, and Zen Technologies. Others emphasize potential upside in select IT and recycling companies, predicting gains of up to 30 percent. Technical analysts also pick names such as Grasim and India Hotels with short-term targets. These insights suggest that even in a broadly positive market, investors remain focused on stock-specific opportunities.

A Market Driven by Policy and Confidence

The current rally is a mix of optimism about domestic policy changes and confidence in India’s long-term growth story. The government’s focus on tax reform, insurance penetration, and industrial orders is encouraging investor participation. Meanwhile, global rating agencies providing an upgrade to India’s outlook only strengthens this belief. The combination of policy support, corporate activity, and steady domestic buying keeps the market resilient even when global uncertainties remain.

Risks That Remain

Despite the positive tone, risks cannot be ignored. Continuous outflows by foreign investors raise concerns about global sentiment toward emerging markets. Any unexpected signal from the US Federal Reserve can also lead to volatility. In addition, rising valuations in certain pockets of the market mean that corrections are always possible. While financials and energy are leading the rally, sectors like IT show that not all areas of the market are equally strong.

Closing Outlook

The Indian stock market continues to ride on optimism, supported by strong performances in financials, Reliance Industries, and mid-cap companies with positive news flow. Policy developments such as the potential GST cut and sovereign rating upgrades add to the bullish outlook. At the same time, risks around global rate policy and persistent foreign outflows keep caution alive.

As of now, the balance tilts toward optimism. The benchmarks are rising steadily, supported by strong domestic participation and key sectoral drivers. If the policy environment remains favorable and global liquidity conditions improve, the Indian stock market could continue to build on this momentum in the weeks to come.