Closing Bell: Nifty 50 Ends Flat Below 24,000; Nifty IT Jumps 3.54%, Coforge Surges 10%

Indian benchmark indices ended largely unchanged on Tuesday, July 28, as gains in information technology stocks helped offset weakness in energy and Banking shares. The market remained rangebound after ending a five-session losing streak in the previous session, while easing tensions in the Middle East and optimism ahead of the U.S. Federal Reserve's policy decision kept investor sentiment stable.

The Nifty 50 opened at 23,971.25 and witnessed sharp volatility during the initial trade before climbing to an Intraday high of 24,041.15. However, the index failed to hold above the key 24,000 level and slipped to an intraday low of 23,961.95 before moving sideways for the remainder of the session. The Nifty 50 settled at 23,987.60, down 10.60 points or 0.04 per cent. The Sensex declined 69.86 points, or 0.09 per cent, to close at 76,765.92. The Bank Nifty fell 0.58 per cent, ending its two-day gaining streak, while India VIX declined 1.74 per cent to remain below the 12.5 mark.

Global cues remained supportive after Brent crude prices fell below USD 88 per barrel. Brent crude declined around 2 per cent to nearly USD 87.3 a barrel, extending its sharp fall from the previous session after U.S. President Donald Trump said Washington was holding "good talks" with Iran and that a resolution remained possible. Lower crude oil prices eased concerns over inflation and India's import bill.

The Indian rupee also recorded its strongest single-day gain in more than six weeks as the Reserve Bank of India intensified dollar-selling intervention, supported by the decline in crude oil prices. The domestic currency appreciated 0.7 per cent on July 27, strengthening from 96.5625 to touch an intraday high of 95.7950 against the U.S. dollar. Market participants estimated that the RBI sold nearly USD 8-9 billion across spot and non-deliverable forward markets on Friday alone. Combined with around USD 40 billion of foreign currency inflows since early June and a nearly 15 per cent correction in crude oil prices, the rupee strengthened to a two-week high of 95.64.

Sector-wise, only four of the eleven major sectoral indices ended higher. In the broader market, the Nifty Midcap 100 index gained 0.08 per cent, while the Nifty Smallcap 100 index slipped 0.22 per cent.

The Nifty IT index emerged as the best-performing sector, surging 3.54 per cent and extending its winning streak to a third straight session while hitting an eight-week high. The rally came despite weakness in Asian technology stocks, as Indian IT companies are viewed as relatively insulated from concerns over the high capital expenditure required for the artificial intelligence boom. On the other hand, the Nifty Energy index declined 1.69 per cent, making it the worst-performing sector after posting strong gains over the previous seven weeks.

Among individual stocks, Coal India fell 4.06 per cent after reporting June quarter earnings below market expectations. Bharat Electronics declined 4.46 per cent amid concerns over margins. In contrast, Coforge surged 10.31 per cent after reporting that its net profit more than doubled in the June quarter, revenue rose 49 per cent year-on-year, the board announced an interim Dividend and its Order Book increased to USD 2.23 billion.

Among the biggest contributors to the Nifty 50's gains, Tata Consultancy Services added 22.84 points, Infosys contributed 20.29 points and Eternal added 19.74 points. On the downside, Hindustan Unilever was the biggest drag, pulling the index down by 29.36 points, followed by ICICI Bank with 23.28 points and Reliance Industries with 18.11 points.

Market breadth remained weak despite the benchmark indices closing nearly unchanged. Out of 3,407 stocks traded on the NSE, 1,160 advanced, 2,133 declined and 114 remained unchanged. During the session, 75 stocks touched their 52-week highs, while 45 hit their 52-week lows. Additionally, 89 stocks were locked in their Upper Circuits, whereas 102 stocks were locked in their Lower Circuits.

Disclaimer: The article is for informational purposes only and not investment advice.