Closing Bell: Nifty 50 Gains 0.28% to Close Above 24,300 as Fed Holds Rates; Auto Stocks Rally

The Indian stock market ended higher on Thursday, July 30, with benchmark indices extending their gains after the U.S. Federal Reserve kept its benchmark interest rates unchanged, in line with expectations. However, the central Bank's reaffirmation of its commitment to containing inflation kept global investors cautious, resulting in a volatile trading session before late buying lifted domestic equities.

The Nifty 50 opened at 24,249.55 and traded in a narrow range for most of the session after slipping to an Intraday low of 24,187.10 in early trade. The benchmark remained volatile around the 24,250–24,300 zone before strong buying in the final hour pushed it to an intraday high of 24,331.40. The Nifty 50 settled 66.95 points, or 0.28 per cent, higher at 24,317.15, ending above the 24,300 mark. The Sensex gained 273.55 points, or 0.35 per cent, to close at 77,928.15.

The Bank Nifty ended 0.10 per cent lower and formed a doji candlestick pattern, indicating indecision among banking stocks. Meanwhile, India VIX climbed 1.24 per cent to move above the 12 level, reflecting a rise in market volatility.

Global cues remained mixed as Brent crude oil slipped below USD 90 per barrel, giving up part of the previous session's gains despite fresh U.S. air strikes on Iran following attacks on American forces in the Middle East. The decline in crude prices provided some support to market sentiment by easing concerns over imported inflation.

The broader market underperformed the benchmark indices. The Nifty Midcap 100 index declined 0.35 per cent, ending its three-session winning streak, while the Nifty Smallcap 100 index fell 0.56 per cent.

Sectoral performance remained mixed. Six of the 11 major sectoral indices closed in positive territory. The Nifty Auto index was the top performer, rising 1.63 per cent to hit a five-month high. Most of the other gaining sectoral indices advanced less than 0.5 per cent, while the indices ending in the red declined by up to 0.1 per cent. The Nifty Realty index was the weakest performer, falling more than 2 per cent as nine of its 10 constituent stocks ended lower.

Among individual stocks, Dabur India declined 1.75 per cent despite reporting growth in quarterly profit, as investors remained concerned about muted underlying demand and the absence of near-term earnings triggers. SML Mahindra surged 10 per cent after approving the acquisition of Mahindra & Mahindra's Truck and Bus Division.

HDFC Bank, Reliance Industries and Mahindra & Mahindra were the biggest contributors to the Nifty 50's gains, adding 19.19 points, 25.04 points and 12.06 points, respectively. On the downside, Adani Ports and Special Economic Zone, ICICI Bank and Shriram Finance were the top drags on the index, reducing it by 8.94 points, 6.25 points and 5.39 points, respectively.

Market breadth remained negative despite the gains in the benchmark indices. Out of 3,419 stocks traded on the NSE, 1,326 advanced, 1,975 declined and 118 remained unchanged. During the session, 86 stocks touched their 52-week highs, while 52 stocks hit their 52-week lows. A total of 64 stocks were locked in their Upper Circuits, whereas 92 stocks were locked in their Lower Circuits.

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