The Indian stock market remained range-bound for the second straight session on Thursday, July 16, as escalating tensions in the Middle East, persistent weakness in the Indian rupee, and elevated crude oil prices kept investor sentiment cautious.
Traders also appeared to adopt a measured approach as they awaited more June-quarter earnings for cues before making broad-based buying decisions.
Both the Nifty 50 and the Sensex ended largely unchanged, while the broader markets closed with modest losses.
Sectoral performance remained mixed. Nifty Consumer Durables emerged as the top gainer, rising 1.60%, followed by Nifty Chemicals, Nifty Media, Nifty IT, and Nifty Auto, which gained between 0.46% and 1.40%.
On the losing side, Nifty Realty was the worst performer, declining nearly 1%, while Nifty PSU Bank and Nifty Metal ended lower by 0.46% and 0.37%, respectively.
Tensions in the Middle East escalated further after the United States carried out fresh strikes on Iranian missile storage facilities and launch sites near the strategic Strait of Hormuz. US forces also reportedly fired on a vessel accused of attempting to breach Washington’s naval blockade on Iran.
Iran retaliated with missile and drone attacks targeting US allies in the region and warned that its military response could intensify.
The continued exchange of strikes between the US and Iran, coupled with renewed threats to the Strait of Hormuz, has effectively derailed the interim truce and raised fears that the conflict could escalate into a broader regional war.
Meanwhile, the Indian rupee hovered around 96.2 per US dollar, remaining under pressure after slipping to an eight-week low amid rising crude oil prices. The domestic currency has weakened about 1.7% so far this month, moving closer to the record low it touched in May.
MRPL, Dixon, ABB, Jindal Saw among top gainers
Among the top gainers, Mangalore Refinery and Petrochemicals (MRPL) led the rally, surging 10% to ₹173 apiece. Emmvee Photovoltaic Power and Chennai Petroleum also posted strong gains of 8.2% and 7.2%, respectively.
Shares of electronics manufacturing services (EMS) companies also witnessed broad-based buying. Dixon Technologies, Kaynes Technology, Syrma SGS Technology, Cyient DLM, and PG Electroplast all ended the session with gains of up to 6.3%.
The rally followed the Union Cabinet’s approval of two major manufacturing initiatives on Wednesday, with a combined outlay of nearly ₹1.9 lakh crore (around $22 billion).
The government approved the ₹1.27 lakh crore Semicon 2.0 programme to strengthen India’s semiconductor design and manufacturing ecosystem, along with the ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS), aimed at boosting domestic production, exports and value addition in the mobile phone sector.
Capital goods stocks also participated in the rally, with ABB India, BHEL and Siemens advancing between 2.5% and 6.4%.
Elsewhere, Jindal Saw gained 5% after investors reacted positively to the company’s June-quarter earnings, while IIFL Finance extended its winning streak for a second consecutive session, rising another 4.3% to settle at a five-month high of ₹567.
Among chemical stocks, Himadri Speciality Chemical and SRF gained 6% and 4.1%, respectively.
ICICI Lombard, HDFC AMC, Signature Global among top losers
Among the top laggards, ICICI Lombard General Insurance and HDFC Asset Management Company tumbled 10.5% and 4.7%, respectively, after announcing their June-quarter results. Profit booking also weighed on Nuvoco Vistas Corporation, which declined 5.1% to ₹358 apiece following its recent rally.
Signature Global (India) fell 5.8% to ₹793.20 after reporting its June-quarter business update, while Groww slipped 5% to ₹205 despite reporting a healthy March-quarter performance.
Weakness was also visible across the asset management space, with HDFC Asset Management, Nuvama Wealth Management, and UTI Asset Management ending the session in the red. Among new-age technology stocks, PB Fintech and Eternal also remained under pressure, falling more than 3% each.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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