Table of Contents
Indian Stock Market Review: A Day of Gains and Mixed Trends
Market Opening and Performance
The Indian stock market opened on a positive note, surpassing the previous day’s closing point. This upward momentum was maintained throughout the trading session, resulting in a day of gains for many sectors. The market’s overall performance was buoyant, with particular strength observed in Public Sector Undertaking (PSU) bank stocks, while Information Technology (IT) stocks remained largely flat.
Sectoral Highlights
PSU Banks Lead the Rally: PSU bank stocks were the top performers of the day, reflecting investor confidence in the sector. The rally in these stocks significantly contributed to the market’s overall positive performance.
IT Stocks Remain Steady: In contrast to the robust performance of PSU banks, IT stocks did not exhibit significant movement and remained flat. This sector showed little change in stock prices, indicating a lack of major developments influencing investor sentiment.
Global Market Influence
The performance of global markets had a mixed impact on the Indian stock market.
US Markets Up: The US markets closed higher, providing a positive signal to the Indian markets.
European Markets Down: European markets were down, creating a contrasting sentiment compared to the US markets.
Mixed Trends in Asia: Other Asian markets experienced mixed trends, with no clear direction influencing the Indian market.
China’s GDP Growth Impact
China’s GDP growth for the quarter was reported at 4.7%, which was below the expected 5.1%. This lower-than-expected growth rate had a ripple effect across Asian markets, contributing to the mixed trends observed.
Top Gainers in NIFTY 50
The top gainers in the NIFTY 50 index for the day were:
- ONGC: Closed at Rs 322.50, up by 5.01%
- SBI Life: Closed at Rs 1,613.45, up by 3.24%
- Shriram Finance: Closed at Rs 2,882.30, up by 3.15%
- Dr Reddy’s: Closed at Rs 6,794.75, up by 3.03%
- Bajaj Auto: Closed at Rs 9,673.35, up by 2.57%
Top Losers in NIFTY 50
The top losers in the NIFTY 50 index for the day were:
- LTIMindtree: Closed at Rs 5,478.15, down by 1.70%
- Asian Paints: Closed at Rs 2,956.50, down by 1.42%
- Grasim: Closed at Rs 2,803.75, down by 1.41%
- Tata Steel: Closed at Rs 166.76, down by 1.14%
- Axis Bank: Closed at Rs 1,307.45, down by 0.75%
Key News and Updates
Trade Deficit: India’s trade deficit for June stood at $20.98 billion, up from $19.19 billion in the same month last year.
Wholesale Inflation: India’s wholesale inflation rose to 3.4%, the highest in 16 months, indicating rising prices in the economy.
Corporate Earnings:
- Xiaomi: Reported a significant 77% drop in profit in India, with revenue from operations falling by about 32% to Rs 26,697 crore for the financial year 2023.
- Swiggy and Zomato: Both companies increased their platform fee to Rs 6.
- BluSmart: Raised Rs 200 crore from key investors including ResponsAbility, MS Dhoni’s family office, and ReNew Chairman Sumant Sinha.
Stock Specific Updates
Ashok Leyland: Secured an order for 2,104 Viking passenger buses worth Rs 981.45 crore from the Maharashtra State Road Transport Corporation.
HUL: Approved the sale of its water purification business Pureit to A.O. Smith’s India subsidiary for an enterprise value of Rs 601 crore ($72 million).
TCS: Announced plans to hire approximately 40,000 freshers in the current financial year.
HDFC Life: Reported a 15% increase in net profit to Rs 477 crore for the April-June quarter, with net premium income rising 9% year-on-year to Rs 12,510 crore.
Aurobindo Pharma: Scheduled a board meeting on July 18 to consider the buyback of shares and other matters.
IIFL Finance: Reported that its gold loan assets under management stood at Rs 16,000 crore in June 2024, down from Rs 23,354 crore in March 2024.
Birla Estates: Acquired land in Gurugram for a residential project expected to generate revenue of over Rs 1,400 crore.
SBI: Increased loan interest rates on certain tenures by 0.10%.
Commodity and Currency Updates
Gold: The price of 10 grams of gold rose by 0.88% to Rs 73,403.
Silver: The price of 1 kilogram of silver fell by 0.32% to Rs 92,691.
USD-INR: The exchange rate of USD to INR increased by 0.08% to Rs 83.59 per USD.
Global Market Performance
Dow Jones: Closed at 40,000.90, up by 0.62%.
Nasdaq: Closed at 18,396.98, up by 0.62%.
Long Term Returns
Over the past 20 years, the long-term returns have been as follows:
- Sensex: 15.13% per annum
- Nifty: 14.86% per annum
- Dow Jones: 7.06% per annum
- Nasdaq: 11.89% per annum
The Indian stock market showcased a day of gains, driven primarily by PSU bank stocks and positive cues from the US markets. However, the mixed trends in other Asian markets and the lower-than-expected GDP growth from China created a cautious atmosphere. Key corporate updates, trade deficit figures, and rising wholesale inflation were notable aspects influencing market sentiment. The day also highlighted significant movements in specific stocks and sectors, reflecting diverse investor interests and market dynamics.