Private financials limit gains, while earnings-driven stock-specific action dominates trade
By Our Business Correspondent
Indian domestic equity benchmarks extended their recovery for a second consecutive session on Thursday, shrugging off weak global cues to finish modestly higher amid sustained buying in automobile, energy and select consumer-oriented stocks. Although investor sentiment remained cautious following the US Federal Reserve’s policy decision and renewed geopolitical tensions in the Middle East, encouraging domestic corporate earnings and continued resilience in heavyweight stocks helped the market maintain its upward momentum.
The S&P BSE Sensex rose 273.55 points (0.35%) to close at 77,928.15, while the Nifty 50 gained 66.95 points (0.28%) to settle at 24,317.15, comfortably above the psychologically significant 24,300 level. The latest advance marked the second straight session of gains, taking the Sensex’s cumulative rise over two sessions to 1.51%, while the Nifty has climbed 1.38% during the same period.
Despite considerable intraday volatility driven by mixed global signals, domestic investors continued to display confidence in fundamentally strong companies reporting healthy quarterly earnings. Market participants largely viewed the session as another indication that India’s equity market remains relatively resilient even as global uncertainties persist.
Technical Structure Remains Positive
From a technical perspective, market analysts observed that the Nifty continues to trade above its immediate support zone around 24,200, suggesting that the near-term bullish bias remains intact. Although profit-booking emerged in select financial counters, buying interest in autos, industrials and energy stocks helped the benchmark maintain positive territory throughout much of the trading session.
The broader trend also suggests that investors are selectively accumulating fundamentally strong companies rather than engaging in broad-based buying.
Auto, Energy and Heavyweights Provide Support
Among the biggest contributors to Thursday’s gains were Mahindra & Mahindra (M&M), Reliance Industries, and HDFC Bank.
M&M climbed 2.26% after reporting an impressive set of first-quarter earnings. The automobile major posted a 33.58% year-on-year increase in consolidated net profit to Rs 5,454.54 crore, while revenue from operations rose 27.8% to Rs 58,187.57 crore, reflecting strong demand across its automotive and farm equipment businesses.
Reliance Industries advanced 1.06%, benefiting from strength in the energy sector amid elevated crude oil prices and continued investor confidence in the conglomerate’s diversified business model.
HDFC Bank also provided stability by gaining 0.70%, although weakness in several other private financial stocks prevented a stronger market rally.
Broader Market Shows Mixed Picture
While frontline benchmarks ended in positive territory, the broader market presented a mixed performance.
The BSE MidCap index slipped 0.29%, whereas the BSE SmallCap index declined 0.83%, indicating that investors preferred large-cap quality names after the recent rally in broader markets.
Market breadth also remained somewhat uneven. On the BSE, 1,690 shares advanced, while 2,527 shares declined, with 200 stocks remaining unchanged. The divergence between benchmark gains and broader market weakness reflected highly selective institutional buying rather than widespread participation.
Volatility Inches Higher
Investor caution remained evident as the India VIX, often referred to as the market’s fear gauge, rose 1.22% to 12.16. Although the increase was modest, it reflected lingering uncertainty over global monetary policy, geopolitical risks and the sustainability of recent market gains.
Bond Market, Currency and Commodities
In the debt market, the yield on India’s benchmark 10-year government security edged higher to 6.807%, compared with 6.796% in the previous session, indicating mild pressure on bond prices.
The Indian rupee, however, showed resilience against the US dollar. The partially convertible rupee appreciated to around 95.6250 per US dollar, improving from its previous close of 95.7625, supported by steady foreign exchange inflows and relatively stable domestic fundamentals.
In the commodities segment, MCX Gold futures for August settlement climbed 0.72% to Rs 1,42,801 per 10 grams, tracking gains in international bullion prices amid continued global uncertainty.
The US Dollar Index (DXY) eased 0.13% to 100.69, while the benchmark US 10-year Treasury yield remained elevated near 4.69%, reflecting persistent concerns over inflation and future US interest rate expectations.
Meanwhile, Brent crude oil traded above $90 per barrel, with September futures rising to around $90.87, supported by continuing tensions in the Middle East.
Global Markets Offer Mixed Signals
Global markets provided mixed cues to investors throughout the session.
European equities traded higher after official data showed the eurozone economy expanded 0.4% during the second quarter, comfortably exceeding market expectations of 0.2%. The stronger-than-expected economic performance offered some relief regarding the region’s growth outlook.
Asian markets, however, closed on a mixed note as investors remained cautious following recent sharp swings in artificial intelligence-related technology stocks and uncertainty surrounding global interest rates.
US stock futures indicated a positive opening for Wall Street, with Dow Jones futures gaining around 171 points, suggesting some recovery after the previous session’s steep sell-off.
Fed Decision Continues to Influence Markets
Global investor sentiment continued to be shaped by the US Federal Reserve’s latest monetary policy decision.
The Federal Reserve kept benchmark interest rates unchanged but acknowledged differing views among policymakers regarding the future trajectory of inflation and interest rates. The absence of clear forward guidance left financial markets uncertain about the timing of future policy actions.
The policy announcement triggered a sharp sell-off on Wall Street overnight. The Dow Jones Industrial Average plunged 2.19%, marking its worst single-day decline since April 2025. The S&P 500 fell 1.52%, while the technology-heavy Nasdaq Composite declined 1.74%, extending its correction to more than 10% below its record high.
Following the Fed decision, US Treasury yields climbed sharply. The benchmark 10-year Treasury yield moved above 4.67%, while the 30-year Treasury yield crossed 5.2%, reaching its highest level since 2007.
Federal Reserve Chair Kevin Warsh reiterated the central bank’s commitment to restoring price stability but refrained from offering explicit guidance on the timing of future interest rate adjustments. He suggested that the recent surge in bond yields had already tightened financial conditions, thereby reducing the urgency for immediate policy intervention.
Geopolitical Risks Keep Oil Elevated
Oil prices remained firm as geopolitical tensions in the Middle East continued to support energy markets.
Despite ongoing missile and drone attacks in parts of the region, shipping data suggested that commercial oil tankers continued transiting major maritime routes, helping ease immediate concerns about large-scale supply disruptions.
Nevertheless, crude prices remained elevated above $90 per barrel, keeping inflation risks under close watch for policymakers worldwide.
Corporate Earnings Drive Stock-Specific Action
The ongoing first-quarter earnings season continued to dominate stock-specific movements.
Among the standout performers was Redington, which surged 7.84% after reporting record quarterly results. The technology distributor posted a 76.6% jump in profit after tax to Rs 486 crore, while revenue climbed 34.6% to Rs 34,922.5 crore, reflecting strong demand across business segments.
Balkrishna Industries (BKT) rallied over 11% after delivering a 50.47% increase in standalone net profit to Rs 432.10 crore, supported by healthy volume growth and stable demand across international markets.
V-Guard Industries gained 4.88% after reporting a 76.37% increase in consolidated net profit to Rs 130.25 crore, driven by broad-based growth across product categories and geographical markets.
Engineering company MTAR Technologies hit the 5% upper circuit after posting an impressive 364.8% jump in quarterly profit, accompanied by a 130.4% increase in revenue.
Oilfield services company Jindal Drilling & Industries advanced 4.01% after securing a three-year offshore drilling contract from Oil and Natural Gas Corporation (ONGC) for deployment of its offshore rig Jindal Pioneer.
Mahindra Group Announces Strategic Restructuring
Another notable development came from the Mahindra Group.
Shares of SML Mahindra hit the 20% upper circuit after the company’s board approved the acquisition of Mahindra & Mahindra’s Truck and Bus Division through a slump sale valued at Rs 525 crore, subject to working capital adjustments.
The acquisition includes employees, manufacturing assets, intellectual property, permits, licences, contracts and associated liabilities, strengthening SML Mahindra’s commercial vehicle business.
Weak Earnings Drag Select Stocks
Not all earnings announcements were well received.
Hexaware Technologies declined 6.81% after reporting a 13% fall in quarterly profit, despite healthy revenue growth, raising concerns over margin pressures.
Syngene International dropped 3.44% after reporting a quarterly loss following exceptional items. Even excluding one-time items, profit fell sharply while revenue declined nearly 16%, disappointing investors.
Chalet Hotels slipped 3.85% after reporting a significant decline in both revenue and profitability during the quarter.
Bajaj Housing Finance ended marginally lower despite reporting a 23% increase in net profit, as investors appeared to have already priced in the company’s healthy financial performance.
Workspace solutions provider EFC (I) also declined over 5%, despite reporting strong growth in revenue and earnings, indicating profit-booking after recent gains.
IPO Market Remains Active
Activity in the primary market continued to attract investor attention.
Among ongoing public issues, MV Electrosystems received encouraging demand, with subscriptions reaching 3.52 times the shares on offer by Thursday evening.
Healthcare major Manipal Health Enterprises witnessed relatively moderate participation, with its issue subscribed 0.45 times.
Similarly, Juniper Green Energy attracted subscriptions of 0.36 times, with both issues scheduled to remain open for investor bids until early August.
Strong Debut for Newly Listed Companies
Fresh listings also remained in focus.
Indo-MM emerged as the biggest listing success of the day, ending nearly 53% above its issue price after an impressive market debut accompanied by robust trading volumes.
Lohia Corp also delivered healthy listing gains, closing about 16% above its issue price, reflecting strong investor appetite.
In contrast, Xtranet Technologies ended slightly below its issue price despite listing at a premium, indicating mixed investor response after initial enthusiasm.
Outlook
Going forward, market participants are expected to closely monitor the progress of the domestic earnings season, global central bank commentary, crude oil prices, foreign institutional investor activity and geopolitical developments in the Middle East.
As long as the Nifty sustains above key technical support levels, analysts believe the market may continue witnessing stock-specific opportunities, although elevated global uncertainty and rising bond yields could keep overall volatility high.
Disclaimer: This report is based on publicly available market data and corporate disclosures. It is intended solely for informational and journalistic purposes and should not be construed as investment, financial or trading advice. Investors should consult qualified financial advisers before making investment decisions.
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