The Indian stock market enjoyed healthy across-segment buying interest on Monday, 27 July, with the benchmarks jumping 1% each, snapping their five-day losing streak.
The 30-share pack Sensex jumped 776 points, or 1.02%, to end at 76,835.78, while the NSE counterpart Nifty 50 ended with a healthy gain of 229 points, or 0.96%, at 23,995.95.
The Nifty Midcap 100 index climbed 1.11%, and the Smallcap 100 index jumped 1.31%.
The overall market capitalisation of BSE-listed firms rose to nearly ₹481 lakh crore from nearly ₹476 lakh crore in the previous session, making investors richer by ₹5 lakh crore in a single session.
Why did the stock market rise today?
The domestic stock market rallied, mirroring positive global sentiment after the US and Iran halted strikes, raising hopes of a diplomatic resolution to the Middle East conflict that could ensure smooth energy supply through the Strait of Hormuz.
As per media reports, the US did not launch any strikes on Iran for a third consecutive night after a suggestion from senior military officials to President Donald Trump that the bombing campaign had reached the limits of its effectiveness.
The de-escalation in US-Iran tensions drove the Brent crude benchmark down by more than 9% to levels near $87 per barrel, easing concerns over inflation and rate-hike fears.
“A pause in strikes in West Asia (Middle East) has eased concerns over rising import costs and inflation, triggering a relief rally in markets. The sharp correction in crude oil prices, along with a decline in long-term bond yields, has also raised hopes of a durable resolution, supported by signs of long unwinding,” Vinod Nair, Head of Research, Geojit Investments, noted.
A sharp jump in the rupee also boosted sentiment. The Indian rupee also surged 63 paise to settle at 95.90 per dollar, provisional figures showed.
The dollar index, which measures the value of the dollar against a basket of six major foreign currencies, fell 0.30%, improving the appeal of emerging market equities.
Market focus is also on the monetary policy decisions of major global central banks, including the US Federal Reserve, the Bank of England (BoE), and the Bank of Japan (BoJ).
“Key central bank policy meetings this week, led by the Fed, BoE, and BoJ, may provide greater flexibility to maintain the status quo on interest rates. On the domestic front, a narrowing rainfall deficit is adding comfort to the inflation outlook, supported by better-than-expected Q1 earnings and a positive business outlook,” Nair added.
Top Nifty 50 gainers and losers today
As many as 43 stocks ended higher in the Nifty 50 index, among which Eternal, InterGlobe Aviation (IndiGo), Infosys, and Bajaj Finance ended at the top.
On the flip side, ONGC, HDFC Life Insurance Company, and HDFC Bank ended as the top laggards in the index.
Sectoral indices today
Nifty Media (up 2.39%), IT (up 2.34%), and Realty (up 2.28%) clocked solid gains.
Nifty Auto (up 1.60%), Pharma (up 1.56%), Healthcare (up 1.46%), and FMCG (up 1.04%) also ended significantly higher.
Nifty Bank rose by 0.69%, while the Financial Services index climbed 0.83%.
Stocks at 52-week high and low
Divis Laboratories, Federal Bank, IDFC First Bank, Sun Pharma, Titan Company, and United Spirits were among the 142 stocks that hit their 52-week highs in intraday trade on the BSE.
However, 77 stocks, including Tega Industries and Go Digit General Insurance, hit their 52-week lows in intraday trade on the BSE.
Nifty 50 technical outlook
Shrikant Chouhan, the head of equity research at Kotak Securities, believes that as long as the index is above 23,880, the pullback formation may continue.
“On the higher side, it could retest the level of the 20-day SMA (simple moving average) or 24,100-24,150. On the flip side, below 23,880, the selling pressure is likely to accelerate. If it falls below this level, the market could slip to 23,800-23,725,” said Chouhan.
According to Sudeep Shah, Head- Technical and Derivatives Research at SBI Securities, the 100-day EMA zone of 24,120-24,150 may act as an immediate hurdle for the index, while a decisive move above 24,150 could trigger a fresh upswing, paving the way for a rally towards 24,300.
On the downside, the 23,900-23,880 zone remains a crucial support area. As long as the index holds above this support band, the undertone is likely to remain positive, said Shah.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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