The impressive comeback seems to be here. The markets ‘greened’ up today, the kind of opening bulls would have wanted to be for this week. The Benchmark indices closed almost a percent higher, most of the sectoral indices, the Mid Cap and the Small Cap indices following the gains. PSU Bank and Realty indices stood exceptionally out with leading gains of 2.20% and 1.85% respectively.
The Green Closing Bell
- Sensex rose 746.29 (0.93%) to close at 80,604.08
- Nifty50 rose 221.75 points, i.e. 0.91%, closing at 24,585.05
- The Nifty Mid-cap 100 index rose 0.85%, rising by 476.80 to close at 56,479
- The Nifty Small-cap 100 index increased by 0.36%, closing at 17,491.70
These gains well reflect the indicating optimism in wider markets.
Top Gainers and Sectoral Performance
Public sector bank shares drove the market’s upward swing after record Q1 performance by State Bank of India (SBI). The Nifty PSU Bank index surged 2.20%, with SBI gaining 2.38%. Other prominent sectoral movers were auto, realty, and healthcare stocks:
- Tata Motors advanced 3.16%
- Eternal was up 2.82%
- Trent was higher by 2.37%
- Grasim and UltraTech Cement both gained above 2%.
- Paytm rose 5.61% to close at 1122.
On a noteworthy note, the Nifty Realty index rose 1.85%, and Nifty Auto and Nifty Pharma both gained about 1%. The sole major laggard was the Nifty Consumer Durables index, which fell 0.72%.
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What Powered Today’s Rally?
- Better earnings from PSU banks, particularly SBI, earned good broker commentary and improved sentiment around the financial space.
- Increased mutual fund inflows: July witnessed an all-time high investor contribution through SIPs and fresh fund offers, strengthening domestic demand for equities.
- Global developments: Favourable trends across Asian markets, a relaxation of tariff concerns, and positive signals from U.S. and European share market indices helped paint India with a positive mood.
- Investor sentiment: After a mild phase of correction, the market recovered smartly on purchases at technical support levels, indicating confidence for the weeks to follow.
Market Breadth and Stock Trends
Of the BSE-traded stocks, 2,223 advanced while 1,886 fell, highlighting supportive market breadth. The top volume buzzers of the Nifty 500 were Doms Industries, HBL Engineering, and PG Electroplast. Defence stocks (Cochin Shipyard, BEML, Bharat Dynamics) also reported strong gains in the meantime.
The Outlook hereon
Market strategists point out that the strong close above 24,500 on the Nifty is an indication of fresh buying interest after recent corrections. With speculations of foreign institutional investors becoming net buyers and firm corporate commentary, the outlook for Indian equities continues to be positive in the near term. Investors are, however, recommended to monitor continued global developments, earnings releases, and domestic macro data for further indication.
India’s stock exchanges began the week in a positive way, creating an encouraging tone for the balance of August.
