Closing Bell: Nifty 50 Ends 0.11% Higher as Financials and PSU Banks Lead Gains; Metal Stocks Weigh

Indian benchmark indices ended marginally higher on Wednesday, July 15, supported by buying in financial stocks as the June quarter earnings season gathered pace. Softer-than-expected U.S. inflation data improved global risk sentiment and supported Asian markets, although escalating tensions between the U.S. and Iran, along with higher crude oil prices, kept investors cautious.

The Nifty 50 opened with a gap-up of nearly 50 points at 24,085.85 and climbed to an Intraday high of 24,220.35. However, profit booking during the afternoon session dragged the index to an intraday low of 24,010.55 before it recovered part of the losses. The index finally settled at 24,078.50, up 26.45 points or 0.11 per cent.

The Sensex also finished in positive territory, rising 130.49 points, or 0.17 per cent, to 77,185.43. Meanwhile, the Bank Nifty outperformed the benchmark indices, advancing 0.51 per cent, or nearly 300 points, led by gains in banking stocks. Investor sentiment also improved as India VIX declined 3.5 per cent, slipping below the 13.5 mark.

Among the key contributors to the Nifty 50's gains, HDFC Bank added 20.22 points, followed by Eternal with 13.64 points and ICICI Bank with 13.30 points. On the other hand, Larsen & Toubro emerged as the biggest drag on the index, shaving off 16.54 points, while Infosys and Bharti Airtel reduced the index by 12.70 points and 12.36 points, respectively.

Global markets remained focused on developments in the Middle East. Brent crude oil extended its rally for a third straight session, climbing above USD 85 per barrel after the U.S. launched another round of strikes on Iran and reinstated its naval blockade of Iranian ports near the Strait of Hormuz. The geopolitical tensions continued to raise concerns over potential supply disruptions and kept energy prices elevated.

Sectoral performance remained mixed, with six out of the 11 major sectoral indices ending in positive territory. The Nifty PSU Bank index emerged as the top-performing sector, rising 0.95 per cent, with 10 of its 12 constituents closing higher. Bank of India led the gains within the index. In contrast, the Nifty Metal index declined 1.11 per cent, making it the worst-performing sector, largely due to weakness in Vedanta.

The broader market continued to outperform the benchmark indices. The Nifty Midcap 100 index gained 0.28 per cent, while the Nifty Smallcap 100 index advanced 0.67 per cent, indicating sustained buying interest in mid- and Small-Cap stocks.

Among individual stocks, Tata Elxsi fell 4.78 per cent after the company reported its June quarter earnings following market hours on Tuesday. Patanjali Foods declined 14.64 per cent after a Rs 195 crore block deal weighed on investor sentiment.

Market breadth remained positive, reflecting broader participation in the rally. Out of 3,403 stocks traded on the NSE, 1,847 advanced, 1,445 declined, and 111 remained unchanged. During the session, 84 stocks touched their 52-week highs, while 47 stocks hit 52-week lows. Additionally, 98 stocks were locked in their Upper Circuits, whereas 84 stocks hit their Lower Circuits.

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