Closing Bell: Nifty 50 Gives Up Early Gains, Ends Flat on July 16; HDFC Bank Drags, IT Stocks Cushion Losses

Indian benchmark indices ended largely unchanged on Thursday, July 16, as gains in information technology stocks offset weakness in financial shares following quarterly earnings. Investor sentiment also remained cautious amid escalating tensions in the Middle East, which kept crude oil prices elevated throughout the session.

The Nifty 50 traded within a narrow but volatile range. The index opened at 24,142.10 and climbed to an Intraday high of 24,186.50 in early trade. However, profit booking at higher levels erased the gains as the session progressed. Selling pressure intensified in the afternoon, dragging the benchmark to an intraday low of 24,051.65 before a mild recovery in the final hour.

At the close, the Nifty 50 settled at 24,072.75, down 5.75 points, or 0.02 per cent. The Sensex ended almost unchanged, rising 1.44 points to 77,186.87. The Bank Nifty underperformed, declining 0.30 per cent, or nearly 175 points. Meanwhile, India VIX eased nearly 3 per cent, slipping below the 13 mark despite the day's volatile trading.

Global markets remained focused on geopolitical developments after the U.S. struck Iran's coastal Defence and missile sites on Wednesday following the reimposition of a naval blockade. Iran responded by threatening to curb additional regional energy exports, describing the situation as an "existential war" with Washington. Amid these developments, Brent crude oil hovered around USD 85 per barrel, extending gains for the fourth consecutive trading session.

Sectoral performance remained mixed, with only five of the eleven major sectoral indices ending in positive territory. The Nifty Media index emerged as the best-performing sector, gaining 1.18 per cent and snapping a two-day losing streak. The rally was led by Prime Focus, whose shares surged more than 9 per cent. On the other hand, the Nifty Realty index was the biggest loser, falling 0.98 per cent, weighed down by losses in Prestige Estates Projects. Broader markets also remained under pressure, with the Nifty Midcap 100 index declining 0.41 per cent and the Nifty Smallcap 100 index slipping 0.10 per cent.

Among individual stocks, Dixon Technologies rallied 6.27 per cent after the Union Cabinet approved schemes aimed at boosting mobile phone and Semiconductor manufacturing in India. ABB India hit the 10 per cent Upper Circuit during the session after its parent company reported 81 per cent growth in India orders and announced a USD 5.5 billion deal. The stock eventually closed 6.43 per cent higher.

On the Nifty 50, Bajaj Finance contributed 9.49 points to the index, followed by Mahindra & Mahindra (6.79 points) and Maruti Suzuki India (5.69 points). On the downside, HDFC Bank was the biggest drag, shaving off 23.89 points, followed by Eternal (13.19 points) and SBI Life Insurance Company (4.33 points). HDFC Bank and SBI Life Insurance emerged as the key reasons behind the Nifty 50's subdued closing despite strength in select IT and auto stocks.

Market breadth remained negative. Of the 3,431 stocks traded on the NSE, 1,543 advanced, 1,776 declined, while 112 remained unchanged. During the session, 87 stocks touched their 52-week highs, whereas 46 stocks hit their 52-week lows. Additionally, 96 stocks were locked in their upper circuits, while 85 stocks ended in Lower Circuits.

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