The Indian stock market traded higher on Friday, with Sensex and Nifty rising over 0.5% each, led by gains in IT stocks after Tech Mahindra reported stronger-than-expected quarterly revenue, while investors awaited earnings from several heavyweight companies due later in the day.
At 9.50 am, Sensex gained over 600 points to rise above the 77,800 level, meanwhile, Nifty 50 rose over 150 points to reclaim 24,200 mark. Broader markets, however, traded in the red, with Nifty Midcap 100 and Nifty Smallcap 100 indices trading with marginal losses.
IT stocks, including Tech Mahindra, Infosys, TCS and HCL Tech shares, were the top gainers on Sensex, jumping 2-3%. Reliance Industries shares, meanwhile, gained more than 1% ahead of the Mukesh Ambani led conglomerate’s Q1 earnings announcement today. Bucking the trend, Eternal, Sun Pharma, Bajaj Finserv and few other stocks were trading in the red with marginal losses.
Sectorally, Nifty IT jumped more than 2% to lead gains, while Nifty Pharma dropped more than 1%. The overall market breadth was negative, with NSE seeing 1,607 declines and 856 advances, while 101 stocks remained unchanged.
The war between Iran and the US continued to escalate further. US military said on Thursday it completed its latest wave of strikes on Iran that were carried out at President Donald Trump's direction and marked a sixth consecutive night of American strikes. The US strikes on bridges in Bandar Khamir, a port city in southern Iran, killed at least seven people, IRNA reported, citing the Hormozgan University of Medical Sciences.
Oil prices meanwhile inched higher. Brent crude futures were trading close to $85 per barrel while WTI Crude futures were near $80 per barrel. While oil prices have significantly corrected from the above $120 per barrel levels seen earlier this year during the raging war, they have increased from the lows seen following an interim peace agreement earlier this month.
Foreign investors remained net sellers of Indian equities on Thursday, net selling shares worth nearly Rs 4,206 crore, according to provisional data on NSE. Despite the net sale, FIIs have mostly remained bullish on Indian equities in July so far, remaining net buyers on Dalal Street in nine out of 12 sessions.
The range bound construct of the market is likely to continue, warned VK Vijayakumar, Chief Investment Strategist, Geojit Investment. The overall weakness in rupee seen in the previous sessions has been weighing on the market this week, the analyst noted.
“FCNR B deposit mobilisation by commercial banks is running below expectations, impacted by the high bond yields in the US. This trend, contrary to expectations, has impacted the rupee making it the worst performing currency in Asia this week with a depreciation above 1%. This has again impacted FII flows which had turned positive early this month. Yesterday FIIs sold equity for Rs 4206 crores which might impact sentiments today,” he added.
The big results from RIL today after market hours, and the results of the private banking majors on Saturday can have an impact on the market next week, the analyst noted, adding that the private sector banks are expected to report good numbers.
Successive days of lacklustre trades combined with shrinking trading range, has brought about a triangular formation that points to a potential range breakout, said Anand James, Chief Market Strategist at Geojit Investments.
He however noted that directional clarity is missing and the market is likely to see volatility first, before directional bias sets in. “Towards this end, we will continue to eye the 23,940-24,270 range, aiming for upswings as the starting bias,” he added.
