Stock market benchmarks, the Sensex and the Nifty 50, posted strong gains on Wednesday, 29 July, with banking and IT heavyweights among the lead gainers.
The Sensex jumped 889 points, or 1.16%, to end at 77,654.60, while the Nifty 50 settled with a gain of 265 points, or 1.10%, at 24,250.20. Mid and small-cap segments also clocked solid gains, as the Nifty Midcap 100 rose by 0.82%, while the Smallcap 100 surged 1.48%.
In terms of index contribution, HDFC Bank, Infosys, and Bharti Airtel were the top contributors to the gains in the Sensex index.
Investors earned ₹4 lakh crore in a single session as the overall market capitalisation of firms listed on the BSE rose to over ₹483 lakh crore from ₹479 lakh crore in the previous session.
Market breadth favoured advancers as nearly 2,600 stocks advanced while over 1600 declined on the BSE.
What drove the stock market higher today
The domestic stock market jumped higher even as crude oil prices traded higher and global cues were weak amid reports of fresh escalation in the Middle East.
Market sentiment turned positive, a day after data released by the Ministry of Statistics and Programme Implementation (MoSPI) showed India’s industrial output, measured by the Index of Industrial Production (IIP), grew 7.3% year-on-year in June, a six-month high.
Upbeat macro numbers despite global challenges reinforced investors’ faith in India’s long-term growth story.
Meanwhile, the Indian rupee rose 17 paise to settle at 95.65 per dollar, according to provisional figures, while the Brent crude benchmarkjumped 4% to trade near $88 per barrel.
On the geopolitical front, the US military said it conducted joint strikes with Saudi Arabia in Iraq against Iran-aligned militant groups.
Investors’ focus is also on the US Federal Reserve’s policy decision later today. The Fed is widely expected to keep rates unchanged. Experts believe a surprise rate hike may hit sentiment in emerging markets.
“Domestically, while stronger-than-expected IIP data provided the catalyst for a positive start, the renewed risk appetite helped sustain the gains throughout the session, with IT and metal stocks emerging as key beneficiaries,” Vinod Nair, Head of Research, Geojit Investments, noted.
“Despite the intraday uptick in crude prices driven by renewed tensions in West Asia, the broader decline in oil prices over the week has eased inflation concerns and reinforced optimism around the growth outlook and reduction in operational costs. Attention now shifts to the U.S. Fed’s policy decision due later tonight, with the widely expected pause in rates unlikely to materially impact Indian markets, as it is mostly already priced in,” said Nair.
Top gainers and losers today
Jio Financial Services, Hindustan Unilever, and Infosys were the top gainers among the 38 stocks that ended higher in the Nifty 50 index.
On the flip side, Adani Ports, Mahindra and Mahindra, and Power Grid Corporation ended as the top laggards in the index.
Sectoral indices today
Nifty IT and Metal jumped 2.32% and 2.31%, respectively. Nifty Financial Services rose 1%, while Bank Nifty ended 0.79% higher.
Barring Nifty Realty (down 0.33%) and Auto (down 0.06%), all sectoral indices ended higher.
Nifty technical outlook
As per Shrikant Chouhan, the head of equity research at Kotak Securities, the 20-day SMA or 24,100 and 24,150 would act as crucial support zones.
“As long as the market trades above this level, the uptrend is likely to continue. On the higher side, the market could move up to 24,400-24,500. However, below 24,100, the uptrend would become vulnerable. Below this level, traders may prefer to exit their long positions,” said Chouhan.
Rupak De, Senior Technical Analyst at LKP Securities, said the RSI has entered a bullish crossover. On the hourly chart, the index has reclaimed the 200 DMA as well, confirming near-term strength.
“In the near term, the index is likely to remain strong, with the potential to rise towards 24,450–24,500. On the lower end, support is placed at 24,100. Sentiment may weaken if the index falls below this level, which could lead to a decline towards 23,950,” said De.
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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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