Closing Bell: Nifty 50 Snaps 4-Day Winning Streak; IT Index Rallies Over 2%

The Indian stock market ended lower on Tuesday, July 7, with the Nifty 50 and Sensex snapping their four-day winning streak amid weekly NSE expiry-related volatility. While benchmark indices ended marginally lower, gains in information technology stocks, easing crude oil prices, improving monsoon progress and renewed foreign portfolio investor (FPI) buying helped limit the downside.

The Nifty 50 opened 34 points higher and touched an Intraday high of 24,530.90 after slipping to a low of 24,418.45 during the session. However, profit booking in the final hour dragged the index below its 200-day exponential moving average. The Nifty 50 settled at 24,398.70, down 31.65 points or 0.13 per cent.

The Sensex declined 104.35 points, or 0.13 per cent, to close at 78,180.72. The Bank Nifty also ended 0.16 per cent lower near the 58,200 level. Meanwhile, India VIX fell 1.44 per cent and remained below the 12 mark, indicating subdued market volatility.

Foreign investors continued to show confidence in Indian financial stocks. According to NSDL data, FPIs invested Rs 14,634 crore in banking stocks during the second half of June, marking the sector's highest fortnightly inflow in 14 months. Overall, FPIs turned net buyers of Indian equities with inflows of Rs 14,109 crore, supported by the Reserve Bank of India's policy measures and the government's Tax reforms aimed at attracting foreign investments.

Sectoral performance remained mixed. The Nifty IT index emerged as the best-performing sector, gaining 2.43 per cent, with nine of its 10 constituents ending in positive territory. On the other hand, the Nifty Realty index was the worst performer, falling 1.58 per cent as Brigade Enterprises weighed on the sector. The realty index also snapped its five-day winning streak after rallying more than 10 per cent over the previous five trading sessions.

Broader markets also witnessed profit booking. The Nifty Midcap 100 index declined 0.30 per cent, while the Nifty Smallcap 100 index slipped 0.55 per cent after touching an 18-month high during the session.

Among individual stocks, Titan rose 2.67 per cent after reporting 41 per cent growth in its consumer business during the June quarter, driven by healthy demand in its jewellery segment. Jubilant FoodWorks gained 3.81 per cent after reporting a 14.1 per cent year-on-year increase in consolidated revenue for the quarter. In contrast, Trent plunged 12.44 per cent after its June quarter business update reported weaker-than-expected standalone revenue growth.

Infosys contributed the most to the Nifty 50's gains, adding 22.71 points to the index. Titan Company and Eternal also supported the benchmark, contributing 10.79 points and 9.51 points, respectively. On the downside, Trent was the biggest drag, shaving off 30.16 points from the Nifty 50, followed by ICICI Bank at 19.11 points and Reliance Industries at 19.05 points.

Market breadth remained weak. Of the 3,384 stocks traded on the NSE, 1,191 advanced, 2,084 declined and 109 closed unchanged. During the session, 146 stocks touched their 52-week highs, while 41 hit their 52-week lows. Additionally, 114 stocks were locked in their Upper Circuits, whereas 99 stocks were locked in their Lower Circuits.

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