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“Stock Market Sees Mixed Performance: IT Stocks Surge Amid Inflation Concerns and Corporate Updates”
The stock market opened higher yesterday compared to the previous day’s closing point. This positive opening was a promising start for investors, especially those focusing on Nifty 50 stocks, which experienced significant buying activity between 10:40 AM and 11:04 AM.
Sector Performance
IT Stocks Surge
Information Technology (IT) stocks led the market rally, with a remarkable increase of over 4%. This sector’s robust performance was a bright spot in an otherwise mixed market.
Realty Stocks Decline
In contrast, realty stocks saw the most significant decline, indicating a sector-specific downturn that affected investors in real estate-related shares.
Global Market Trends
US and European Markets
The US markets closed down, reflecting a bearish trend. However, European markets were up, showcasing a divergence in market performance across continents.
Asian Markets
Asian markets displayed a mixed trend, with some indices up while others were down, indicating varied investor sentiment and market conditions across the region.
Top Gainers and Losers in Nifty 50
Top Gainers
- TCS: ₹4,183.95 ▲ 6.63%
- Wipro: ₹560.15 ▲ 4.88%
- Infosys: ₹1,711.75 ▲ 3.57%
- HCL Tech: ₹1,560.20 ▲ 3.19%
- LTIMindtree: ₹5,572.65 ▲ 3.05%
The IT sector dominated the list of top gainers, with TCS and Wipro leading the charge.
Top Losers
- Maruti Suzuki: ₹12,562.50 ▼ 1.20%
- Divi’s Labs: ₹4,539.30 ▼ 0.94%
- Coal India: ₹496.20 ▼ 0.77%
- Asian Paints: ₹2,999.15 ▼ 0.76%
- BPCL: ₹304.55 ▼ 0.67%
Maruti Suzuki and Divi’s Labs were among the top losers, reflecting sector-specific challenges.
Economic Indicators and News
Inflation and Production
Retail inflation rose to a four-month high of 5.08% in June, driven by food inflation at 9.36% and a steep rise in vegetable prices by 29.32%. Conversely, industrial production showed a positive trend, growing by 5.9% in May, the highest in seven months.
Forex Reserves and Payment Systems
India’s forex reserves surged by $5.16 billion in a week, reaching an all-time high of $657.16 billion as of July 5. Additionally, Indians in Qatar can now make QR-based UPI payments, thanks to an agreement between NPCI and Qatar National Bank.
Industry-Specific Developments
Automotive and Manufacturing
Two-wheeler sales grew by 21.3% year-on-year in June, with scooter sales up by 42% and motorcycle sales by 11%. Passenger vehicle sales increased by 3%, according to SIAM.
Investments and Expansions
Air Liquide, a French industrial gas supplier, invested ₹350 crore in a manufacturing plant in Mathura, UP. This plant will supply industrial gases to parts of Delhi, UP, Rajasthan, and MP.
Corporate Updates
HCL Tech
HCL Tech reported a net profit increase of 20.62% to ₹4,259 crore for the April-June quarter. The company announced an interim dividend of ₹12 per share, with a record date set for July 23.
Bharat Electronics
Bharat Electronics secured an export order worth around ₹230 crore from Thales Reliance Defence Systems for radar system parts used in fighter jets.
Jio Financial Services
The Reserve Bank of India approved the conversion of Jio Financial Services from a Non-Banking Financial Company (NBFC) to a Core Investment Company (CIC).
Reliance Industries
Reliance’s board will meet on July 19 to approve the financial results for the April-June quarter.
Jupiter Wagons
Jupiter Wagons raised ₹800 crore through a Qualified Institutional Placement (QIP), with the funds primarily allocated for building a rail wheel and axle manufacturing plant.
Dabur India
Dabur India added 200,000 sales outlets in the financial year 2024.
Prestige Estates
Prestige Estates reported a 22.6% year-on-year decline in total sales to ₹3,029.5 crore for the April-June quarter, compared to ₹3,914.7 crore in FY24.
Alembic Pharma
Alembic Pharma received tentative US FDA approval for its drug for treating pulmonary hypertension.
Commodity and Currency Updates
Gold and Silver
The price of 10 grams of gold increased by 0.64% to ₹73,150. Conversely, the price of 1 kg of silver decreased by 0.17% to ₹92,590.
USD-INR Exchange Rate
The USD-INR exchange rate rose slightly by 0.01%, with the rupee valued at ₹83.54 per USD.
Long-Term Market Returns
Over the past 20 years, the Sensex and Nifty have delivered impressive annual returns of 14.97% and 14.77%, respectively. In comparison, the Dow Jones and Nasdaq have provided annual returns of 7.03% and 11.85%, respectively, showcasing the strength of Indian markets over the long term.
In summary, the stock market experienced a mix of gains and losses yesterday. While IT stocks showed significant growth, realty stocks faced declines. Various economic indicators and corporate updates provided a comprehensive picture of the current market scenario.