Closing Bell: Nifty 50 Ends Above 24,200, Sensex Surges 828 Points as Realty and IT Stocks Drive Rally

Indian benchmark equity indices ended with gains of more than 1 per cent on Friday, July 10, extending their winning streak for a second straight session. Strong quarterly earnings from Tata Consultancy Services (TCS), easing crude oil prices and a sharp decline in market volatility lifted investor sentiment, helping the Nifty 50 reclaim the 24,200 mark.

The Nifty 50 opened with a gap-up of over 150 points and maintained its upward momentum throughout the session. The index settled at 24,206.90, up 244.10 points or 1.02 per cent. The BSE Sensex climbed 827.57 points, or 1.08 per cent, to close at 77,569.39. Bank Nifty also ended higher by 1.39 per cent, finishing above the 58,000 mark. Meanwhile, India VIX declined around 8 per cent to slip below the 13 level, indicating easing market volatility.

Equity-oriented Mutual Fund schemes attracted net inflows of Rs 28,973 crore in June, registering a 26.5 per cent increase from Rs 22,908 crore recorded in May. Mid-Cap, Small-Cap and flexi-cap funds continued to receive strong investor interest, while sectoral and thematic fund inflows more than doubled during the month.

Despite the robust equity inflows, the mutual fund industry reported overall net outflows as debt-oriented schemes witnessed withdrawals exceeding Rs 1 lakh crore. Total industry net outflows stood at Rs 52,949 crore in June, narrowing 17.3 per cent from Rs 64,021 crore in May. Other categories, including Index Funds, Gold ETFs, other ETFs and overseas fund-of-funds, also saw a sharp recovery, attracting Rs 16,724 crore compared with just Rs 362 crore in May, largely driven by strong ETF inflows.

Sectoral performance remained broadly positive, with 10 of the 11 major sectoral indices ending in the green. Broader markets also recovered strongly, with the Nifty Midcap 100 index rising 1.40 per cent and the Nifty Smallcap 100 index advancing 1.55 per cent.

The Nifty Realty index emerged as the top sectoral performer, surging 3.49 per cent as all its constituents ended higher. The index touched its highest level in eight months, extending its gains for a second consecutive session and rising 13 per cent so far in July.

The Nifty IT index advanced 1.96 per cent, led by a 3.5 per cent jump in LTIMindtree after TCS reported June-quarter revenue above market expectations, supported by stronger spending from banking clients and a weaker rupee.

The Nifty Metal and Nifty Consumer Durables indices also outperformed during the session. On the other hand, the Nifty FMCG index was the only sectoral loser, slipping 0.08 per cent due to weakness in Marico. The Nifty Pharma and Nifty Healthcare indices underperformed among the gaining sectors.

Among individual stocks, Dr. Reddy's Laboratories declined 2 per cent, extending the previous session's 5.9 per cent fall after the company said supplies of generic semaglutide would remain unavailable in India and disrupted in Canada until at least late October due to API impurities.

Dixon Technologies gained nearly 3 per cent during the day after the company announced that the Indian government had approved its joint venture with Chinese smartphone maker Vivo Mobile to establish a smartphone manufacturing company in India. However, the stock erased its gains and ended 0.5 per cent lower.

The biggest contributors to the Nifty 50's gains were Reliance Industries (+41.31 points), ICICI Bank (+32.05 points) and HDFC Bank (+24.73 points). The major drags on the index were Bharti Airtel (-7.27 points), Eternal (-4.42 points) and Dr. Reddy's Laboratories (-3.33 points).

Market breadth remained firmly positive. Out of 3,410 stocks traded on the NSE, 2,339 advanced, 976 declined and 95 remained unchanged.

During the session, 110 stocks touched their 52-week highs, while 36 stocks hit their 52-week lows. Additionally, 113 stocks were locked in their Upper Circuits, whereas 71 stocks were locked in their Lower Circuits.

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