Nifty, Sensex Close Higher for Second Day; Nifty PSU Bank Index Hits 11-Month High

Market Update at 4:00 PM: Nifty and Sensex extended their gains for a second straight day on Wednesday, July 16, closing marginally higher. The Nifty 50 held above the 25,200 mark, supported by buying in stocks like Infosys and Mahindra & Mahindra.

At the close, the Nifty 50 edged up by 16.25 points or 0.06 per cent to 25,212.05, while the Sensex gained 63.57 points or 0.08 per cent to settle at 82,634.48.

Sectorally, the IT index led the pack with a gain of 0.63 per cent, driven by a 1.83 per cent rise in Tech Mahindra ahead of its Quarterly Results. The auto index advanced 0.44 per cent, with Mahindra & Mahindra as the top performer, although Tata Motors limited the upside. The metal index ended 0.54 per cent lower due to a stronger US dollar weighing on commodity prices. Overall, 8 of the 11 major sectoral indices closed in positive territory.

In the broader markets, both midcap and smallcap indices closed with slight gains, in line with the benchmarks. The Nifty Midcap 100 inched up by 0.01 per cent, while the Nifty Smallcap 100 added 0.03 per cent.

Among notable stock movers, ITC Hotels rallied 5 per cent after reporting a 54 per cent year-on-year jump in Q1 net profit to ₹133 crore, with revenue growth of 15.5 per cent. Dixon Technologies advanced 4 per cent following its decision to acquire a 51 per cent stake in Q Tech India. HDFC Life gained 2 per cent after a 14 per cent rise in quarterly profit to ₹546 crore and a 16 per cent growth in net premium income. PVR Inox declined 2 per cent after Karnataka proposed a ₹200 cap on movie ticket prices. HDB Financial fell 3.14 per cent as higher provisions weighed on its quarterly profit despite a return to profitability.

The Nifty PSU Bank index was the standout performer, climbing 1.81 per cent to hit an 11-month high, with Punjab National Bank leading the gains. Meanwhile, the Nifty Metal index was the day’s worst performer with a 0.54 per cent decline.

Infosys contributed the most to the Nifty’s gains, adding 22.86 points, followed by Mahindra & Mahindra with 18.20 points, and SBI with 16.39 points. ICICI Bank, Sun Pharma, and TCS were among the major drags, pulling the index down by 8.57, 8.01, and 5.57 points respectively.

Market breadth remained positive. Out of 3,018 stocks traded on the NSE, 1,660 advanced, 1,269 declined, and 89 remained unchanged. A total of 78 stocks hit 52-week highs, while 22 touched 52-week lows. Additionally, 96 stocks were locked in upper circuits, and 60 in lower circuits.

Market Update at 12:15 PM: Markets pared early losses but continued to trade lower by noon amid uncertainty surrounding U.S. tariff developments.

As of 12 PM, the BSE Sensex was down 5.93 points or 0.01 per cent at 82,563.79, while the NSE Nifty 50 slipped 0.24 per cent to 25,135.70. Among the Top Gainers on the Nifty were Adani Ports, Tech Mahindra, SBI, Infosys, Asian Paints, and Axis Bank. On the other hand, Zomato, Suven Pharma, M&M, Tata Steel, and Tata Motors featured among the top laggards.

In the broader market, the Nifty MidCap index was flat, and the Nifty SmallCap index edged lower by 0.08 per cent.

Sectoral trends were mixed—Nifty Auto declined 0.78 per cent and Nifty Metal dropped 0.51 per cent, while Nifty Media and PSU Bank indices gained up to 1.4 per cent.

Market Update at 10:30 AM: Indian equity indices began Wednesday's session on a flat note, with early gains in HDFC Bank helping offset broader market weakness following the release of U.S. inflation data.

As of 9:19 a.m. IST, the Nifty 50 was trading at 25,160.5, down 0.14 per cent, while the BSE Sensex slipped 0.11 per cent to 82,479.24.

Out of the 13 key sectoral indices, eight were in the red. The financials index rose 0.2 per cent, supported by a 1.2 per cent gain in HDFC Bank after the company announced plans to consider a bonus issue at its board meeting scheduled for July 19.

Asian markets saw muted movement, with the MSCI Asia ex-Japan index holding steady. On Wall Street, most indices ended lower, while U.S. Treasury yields climbed to their highest level in over a month, following a modest rise in inflation figures. This spike in yields tends to dampen capital flows into emerging markets like India.

The metal index led sectoral declines, falling 0.5 per cent, as a stronger U.S. dollar made commodities more expensive for non-dollar holders.

Pre-Market Update at 7:45 AM: Indian equity benchmarks Nifty 50 and Sensex are expected to open lower on Wednesday, July 16, following concerns triggered by the latest U.S. inflation figures and mixed global signals. As of 7:20 AM, the GIFT Nifty was quoting around 25,179 — down 86 points — indicating a cautious start for the Indian markets.

Asian equities were under pressure after the U.S. market posted a mixed session overnight. While the Nasdaq closed at a record high supported by strong gains in Nvidia, both the Dow Jones and S&P 500 ended in the red. The U.S. Consumer Price Index rose 0.3 per cent in June, the fastest pace in five months, raising concerns over inflation staying higher for longer and potentially impacting FII sentiment.

Back home, the broader market remains in a consolidation phase, with stock-specific action driven by Q1FY26 results and corporate commentary. Over 50 companies are scheduled to report earnings this week. Key results due today include Tech Mahindra, ITC Hotels, Angel One, IXIGO, LTTS, Kalpataru, JTL Industries, DB Corp, and others.

On the institutional front, FIIs were net buyers on Tuesday, investing Rs 120.47 crore, while DIIs added Rs 1,555.03 crore worth of equities. This helped the domestic market end its losing streak. The Sensex closed 317 points higher at 82,570.91, while the Nifty rose 114 points to 25,195.80. Mid- and Small-Cap indices also posted healthy gains of 0.83 per cent and 0.95 per cent, respectively.

Asian markets reacted to news of a new 19 per cent U.S. tariff on Indonesian exports after President Trump announced a preliminary trade deal.

Meanwhile, oil prices edged higher, supported by demand expectations from the U.S. and China. Brent traded at USD 69, while WTI crude was around USD 66.92. Gold saw a marginal rise on inflation worries, and the U.S. dollar strengthened alongside Treasury yields.

For today, RBL Bank, Glenmark and Hindustan Copper remain on the F&O ban list.

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