Sensex, Nifty Trade Rangebound as IT and Auto Stocks Offset Banking Weakness

Indian equity markets traded with a mild positive bias on Thursday, although the benchmarks remained confined to a narrow range amid mixed global cues and volatile crude oil prices. At 2:00 PM, the Sensex was up 96.23 points, or 0.12 per cent, at 77,750.83. The Nifty 50 gained 31.10 points, or 0.13 per cent, to trade at 24,281.50.

The broader market remained under pressure despite the marginal gains in frontline indices. The Nifty Midcap 100 slipped around 0.35 per cent, while the Nifty Smallcap 100 declined 0.33 per cent. The Nifty Bank fell 195.60 points, or 0.34 per cent, to 57,010.30 as weakness in select private banks restricted the benchmark indices from extending their gains.

Sectorally, information technology stocks continued to lead the market. The Nifty IT index advanced around 1.42 per cent, supported by buying in Wipro, Tech Mahindra, Infosys and HCL Technologies. Indian IT companies remained relatively resilient despite the continuing selloff in global Semiconductor and artificial intelligence stocks. The Nifty Auto index gained around 0.9 per cent, helped by Mahindra and Mahindra, while the Nifty Pharma index rose 0.39 per cent.

On the losing side, Nifty Realty declined around 1.25 per cent as investors booked profits in property stocks. The newly launched Nifty Cement index slipped around 0.6 per cent, while banking and financial services shares also remained under pressure. ICICI Bank, Axis Bank and select financial stocks were among the key drags on the Nifty 50.

Among individual stocks, Redington surged as much as 18 per cent after its June-quarter net profit increased 77 per cent and revenue grew 35 per cent. Mahindra and Mahindra gained nearly 3 per cent to around Rs 3,306 after consolidated net profit rose 34 per cent to Rs 5,455 crore.

Waaree Energies dropped around 6 per cent despite reporting a 79.2 per cent rise in revenue and a 15.4 per cent increase in net profit, as the results failed to meet elevated market expectations. KPIT Technologies declined around 7 per cent after its quarterly profit fell 32 per cent to Rs 117 crore.

Institutional activity provided some support. According to the latest available cash-market data for July 29, foreign institutional investors were net buyers of Rs 2,981.87 crore, while domestic institutional investors purchased shares worth a net Rs 998.02 crore.

Global cues remained mixed. Overnight, the Dow Jones fell 2.2 per cent, the S&P 500 declined 1.5 per cent and the Nasdaq lost 1.7 per cent after the US Federal Reserve kept interest rates unchanged but offered limited clarity on its future policy path. Asian markets were mixed, with Japan’s Nikkei gaining 0.7 per cent and South Korea’s Kospi declining 1.2 per cent. Brent crude remained volatile near USD 89 to USD 92 per barrel amid renewed US-Iran tensions, while the Dollar Index hovered near 100.93.

For the remainder of the session, the Nifty needs to sustain above 24,300 to strengthen the recovery. Immediate support is placed around 24,190 to 24,145, while a break below 24,085 could increase selling pressure. Investors will also track Quarterly Results from Bajaj Finance, Tata Steel, IRFC, Mankind Pharma and Mazagon Dock, along with crude oil movements and geopolitical developments.

This market update is commentary on current developments and should not be treated as a recommendation to buy or sell securities.

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