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The Indian stock market commenced the week on a positive trajectory, with both the Nifty and Sensex showcasing robust gains, effectively interrupting their preceding two-day slump. This resurgence was primarily attributed to renewed buying activity in heavyweight banking constituents, notably HDFC Bank and ICICI Bank, which collectively invigorated market sentiment despite persistent anxieties surrounding international trade tariffs. The robust performance observed within the mid-cap segment further amplified the market's upward momentum, even as small-cap stocks exhibited a marginal decline. By 3 pm, the Sensex had ascended by 284.78 points, equivalent to a 0.35 percent increase, reaching a level of 82,042.51. Simultaneously, the Nifty experienced a rise of 75.15 points, translating to a 0.30 percent gain, and attained a value of 25,043.55. Market breadth reflected a positive bias, with approximately 1645 shares registering advances, while 1995 shares experienced declines, and 133 shares remained unchanged. The recovery witnessed on this particular day was spearheaded by the favorable financial results emanating from HDFC Bank and ICICI Bank. However, market analysts emphasize that investors are keenly observing the potential outcomes of the proposed US-India mini trade agreement. A mutually beneficial resolution of this agreement is anticipated to bolster the prospects of export-oriented sectors and enhance India's relative attractiveness as an investment destination within the broader emerging market landscape. Furthermore, the ongoing moderation in inflation has fueled expectations of a potential additional interest rate cut by the Reserve Bank of India (RBI). Should this materialise, it would serve as a significant catalyst for improved market sentiment, potentially triggering further gains across various sectors. The preceding analysis underscores the multifaceted interplay of domestic and international factors that are currently shaping the trajectory of the Indian stock market. The performance of key banking institutions, coupled with expectations surrounding trade negotiations and monetary policy adjustments, are collectively influencing investor behaviour and market valuations. The Indian IPO market is also showing activity, but lags the US and China.
In the concluding trading hour of the day, sectoral indices on the National Stock Exchange (NSE) exhibited a mixed performance. Banking stocks emerged as the frontrunners, with the Nifty Private Bank index registering a gain of 1.05 percent and the Nifty Bank index advancing by 0.98 percent. The Nifty Metal index (0.94 percent), Nifty Auto index (0.44 percent), and Nifty Midcap 100 index (0.46 percent) also recorded notable gains, contributing to the overall positive market sentiment. Conversely, selling pressure was evident in the oil and gas, fast-moving consumer goods (FMCG), and public sector undertaking (PSU) bank sectors. The Nifty Oil & Gas index experienced the most significant decline, falling by 1.22 percent, followed by the Nifty PSU Bank index (-0.73 percent) and the Nifty FMCG index (-0.60 percent). The India Volatility Index (VIX) witnessed a decline of 0.70 percent, settling at 11.31, indicative of subdued market volatility. Reliance Industries Ltd (RIL) shares experienced a decline in trading activity following the release of the company's earnings report for the quarter ended June 30. Despite the downturn in stock performance, bullish brokerage commentary emerged in response to the report. Reliance Industries reported a substantial 77 percent increase in net profit for the June quarter, reaching Rs 30,783 crore, primarily driven by a one-time gain resulting from the divestiture of its stake in Asian Paints. Even after excluding the Rs 8,924 crore gain, the company's profit exhibited a robust 25 percent year-on-year increase, compared to Rs 15,138 crore in the same quarter of the preceding year. HDFC Bank Ltd, India's largest private sector lender, witnessed a 2 percent increase in its share price following the release of its June quarter results. The bank reported a decent performance, with Net Interest Income (NII) rising by 5.4 percent year-on-year to Rs 31,438 crore. The bank's net profit stood at Rs 18,155 crore. Furthermore, the bank declared a 1:1 bonus issue and a Rs 5 special interim dividend. Several prominent brokerage firms, including Nomura, Nuvama Institutional Equities, and Bernstein, have issued 'buy' recommendations on the stock.
ICICI Bank shares also experienced a 2 percent gain following the release of its June quarter results on July 19. The lender reported year-on-year growth in both core income and profitability, further bolstering investor confidence. CLSA has assigned an 'outperform' rating to the stock, while Nomura has issued a 'buy' call. A consensus of analyst opinion reveals a highly positive outlook for the stock, with 49 out of 52 analysts recommending a 'Buy' rating and none suggesting a 'Sell'. BSE, Angel One, and other capital market stocks witnessed gains of up to 2.5 percent following reports that the market regulator, SEBI, has permitted Jane Street to resume trading activities. Other capital market stocks, including Motilal Oswal Financial Services Ltd (MOFSL), Angel One, and CDSL, also experienced gains. SEBI's decision to allow Jane Street to resume trading follows the US high-frequency trading firm's deposit of Rs 4,844 crore, as confirmed by two sources familiar with the matter on July 21. Technical analysis provided by Mandar Bhojane of Choice Equity Broking suggests a strengthening bullish momentum in the market. He highlights the formation of a Morning Star pattern at key support levels, indicating a potential continuation of the upward trend. For sustained upward movement, the Nifty must maintain its position above 25,330. Upside resistance is observed at 25,600–25,700, while 25,000 serves as immediate support. Bhojane also notes the continuation of a bullish structure in Bank Nifty, characterized by higher highs and higher lows following a successful double bottom pattern. He emphasizes strong trading volumes, suggesting underlying buying interest. The Bank Nifty index must remain above 57,200 to sustain its bullish sentiment. A breakout above 57,600–58,000 could trigger a sharp upside movement, while 56,800 represents key support on the downside.
The top gainers on the Nifty index included Eternal, ICICI Bank, HDFC Bank, HDFC Life Insurance, and M&M. Conversely, the laggards on the index comprised Eicher Motors, Wipro, HCL Tech, IndusInd Bank, and HUL. This article contains financial information and should not be considered as financial advice. Investing in the stock market comes with inherent risks, and investors should consult with qualified financial advisors before making any investment decisions. It is important to conduct thorough research and due diligence before investing in any stock or financial instrument. The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Moneycontrol is part of the Network18 group, which is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary. These disclaimers are intended to protect the website and its management from liability for any losses incurred by users who rely on the information provided on the website. Investors should be aware that past performance is not indicative of future results. The stock market is subject to fluctuations and can be influenced by a variety of factors, including economic conditions, political events, and global events. There is no guarantee that any investment will be profitable. Investors should be prepared to lose money on their investments. It is important to have a diversified portfolio to mitigate risk. Investors should also consider their own risk tolerance and investment goals before making any investment decisions. Investors should not invest money that they cannot afford to lose. The stock market is not a suitable investment for everyone. Investors should seek professional financial advice if they are unsure about whether investing in the stock market is right for them. The information provided in this article is for informational purposes only and should not be considered as a recommendation to buy or sell any stock or financial instrument.
Furthermore, it's crucial to recognize the inherent limitations of relying solely on news articles for making informed investment decisions. News articles often present a snapshot of market conditions at a specific point in time and may not capture the full complexity of the factors influencing stock prices. Moreover, news articles may be subject to biases or inaccuracies, which could mislead investors. Therefore, it's essential to supplement information gleaned from news articles with independent research and analysis. Investors should consult multiple sources of information, including company financial statements, industry reports, and independent analyst opinions, to gain a more comprehensive understanding of the risks and opportunities associated with specific investments. In addition to conducting thorough research, investors should also develop a well-defined investment strategy that aligns with their financial goals and risk tolerance. A sound investment strategy should incorporate diversification, asset allocation, and regular portfolio reviews to ensure that the portfolio remains aligned with the investor's objectives. Investors should also be prepared to adapt their investment strategy as market conditions change. Market fluctuations can create both opportunities and risks, and investors should be prepared to adjust their portfolios accordingly to maximize returns and minimize losses. It's also important to remain disciplined and avoid making impulsive investment decisions based on short-term market movements. Emotional investing can lead to poor decision-making and potentially significant financial losses. By adhering to a well-defined investment strategy and maintaining a long-term perspective, investors can increase their chances of achieving their financial goals. Finally, it's important to emphasize the importance of seeking professional financial advice when making investment decisions. A qualified financial advisor can provide personalized guidance based on an investor's individual circumstances and financial goals. A financial advisor can also help investors develop a comprehensive financial plan that addresses their retirement planning, insurance needs, and other financial goals. The cost of hiring a financial advisor may seem daunting, but the benefits of receiving expert guidance can outweigh the costs, especially for investors who are new to the stock market or who have complex financial situations. By working with a financial advisor, investors can gain access to valuable insights and resources that can help them make informed investment decisions and achieve their financial goals.
Source: Sensex up 300 pts, Nifty tests 25,100 as banks, metals lead rally; midcaps shine