Stock market benchmarks, the Sensex and the Nifty 50, ended in the green for the third consecutive session on Friday, 21 July, amid mixed global cues and a downtick in crude oil prices.
The Sensex ended 166 points, or 0.21%, to end at 78,094.64, while the Nifty 50 settled at 24,383.60, up 66 points, or 0.27%.
Broader markets also mirrored positive sentiment; the Nifty Midcap 100 and Smallcap 100 indices rose by 0.44% each.
The overall market capitalisation of the BSE-listed firms rose to nearly ₹486 lakh crore from ₹4,83 lakh crore in the previous session, making investors richer by about ₹3 lakh crore in a single session.
Both the Sensex and the Nifty 50 rose more than 2% in July, extending gains for the second consecutive month.
However, year-to-date, the Nifty is down 7%, and the 30-share pack is down over 8%.
What drove the markets higher today?
Better-than-expected Q1 earnings are driving the market higher. However, US-Iran tensions, volatility in crude oil prices, and rising US yields keep gains limited.
Crude oil prices inched up to trade above $89 per barrel. Meanwhile, the Indian rupee rose 9 paise to settle at 95.41 per dollar on Friday. The currency rose 1% for the week- its strongest weekly gain since March- amid reportedly persistent central bank interventions.
“Positive momentum continued, although some profit booking emerged at higher levels as caution persisted amid elevated yields and potential rate-hike concerns. The sustainability of the recovery will depend largely on the ongoing earnings season, which is currently outperforming forecasts, and on a reduction in global risks,” said Vinod Nair, Head of Research, Geojit Investments Limited.
“A rebound in global chipmakers, supported by strong earnings and spending plans, eased concerns over AI valuations, putting pressure on domestic technology stocks. As the earnings season gathers pace, markets will seek confirmation that the recent improvement in earnings is broad-based rather than concentrated in a few sectors,” said Nair.
The US-Iran conflict is intensifying and expanding, with Egypt and Saudi Arabia becoming increasingly drawn into regional hostilities.
Top Nifty gainers and losers
Bajaj Finance, Bajaj Finserv, and Jio Financial Services ended as the top gainers in the Nifty index. On the other hand, TCS, Eternal, and Infosys ended as the top laggards in the index.
Sectoral indices today
Nifty IT (down 1.56%), FMCG (down 1.05%), and Consumer Durables (down 0.44%) ended in the red.
On the other hand, Media (up 2.09%), Nifty Auto (up 1.64%), Financial Services (up 1.31%), and Oil and Gas (up 1.08%) clocked strong gains.
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