By Our Business Correspondent
Indian equity markets extended their winning streak for the fourth straight session on Monday, buoyed by easing crude oil prices, sustained foreign institutional investor (FII) inflows and broad-based buying across sectors. Optimism over easing geopolitical tensions in the Middle East after reports of renewed US-Iran engagement also lifted investor sentiment globally.
The benchmark BSE Sensex climbed 544.39 points (0.70%) to close at 78,639.03, while the Nifty 50 surged 390.70 points (1.60%) to settle at 24,774.30, comfortably above the crucial 24,750 level. Over the last four trading sessions, the Sensex has gained 2.44 per cent, while the Nifty has advanced 3.29 per cent.
The rally was led by heavyweight IT and private banking stocks, with Infosys jumping 4.42 per cent, Axis Bank gaining 3.46 per cent and ICICI Bank rising 2.57 per cent. Market breadth remained firmly positive as 2,358 stocks advanced against 1,027 declines on the NSE.
Broader markets also participated in the rally, with the BSE MidCap Index gaining 0.73 per cent and the SmallCap Index rising 1.32 per cent, indicating healthy buying beyond frontline stocks.
Market participants said the sharp decline in Brent crude prices after US President Donald Trump announced that a planned military strike on Iran had been called off significantly improved risk appetite. Brent crude futures dropped 4.7 per cent to $83.80 a barrel, easing concerns over inflation and India’s import bill.
The rupee strengthened to 95.31 against the US dollar, while India’s benchmark 10-year government bond yield edged higher to 6.839 per cent. Gold futures on MCX traded marginally higher at ₹1,43,633 per 10 grams.
Investors also remained focused on the Reserve Bank of India’s three-day Monetary Policy Committee (MPC) meeting, which commenced on Monday. The policy decision, scheduled for August 5, is expected to provide cues on the interest rate trajectory amid persistent global inflationary pressures and geopolitical uncertainties.
Meanwhile, the National Stock Exchange implemented the Closing Auction Session (CAS) for Futures & Options stocks from Monday. Under the revised market structure, continuous trading in F&O stocks will conclude at 3:15 pm, followed by a closing auction to improve price discovery and reduce end-of-day volatility. Derivatives trading will continue until 3:40 pm.
On the global front, European markets traded higher following the sharp fall in crude oil prices, while most Asian markets ended lower ahead of the US July jobs data and another busy earnings week. Dow Jones futures pointed to a positive opening for Wall Street after the three major US indices ended higher on Friday.
Auto stocks shine on July sales
Automobile counters remained in focus after companies announced robust July sales figures.
Ashok Leyland rallied over 5 per cent after reporting a 30 per cent rise in total vehicle sales, while Tata Motors gained 3.65 per cent on a 37 per cent jump in commercial vehicle sales. TVS Motor advanced 1.76 per cent, Force Motors climbed 3.31 per cent, Eicher Motors rose 2.76 per cent and Escorts Kubota added nearly 1 per cent after posting healthy monthly sales numbers.
However, Bajaj Auto declined 2.91 per cent despite reporting a 30 per cent increase in total vehicle sales, while SML Mahindra slipped 4.57 per cent. VST Tillers Tractors ended marginally higher despite reporting lower sales.
Earnings drive stock-specific action
Among earnings-driven movers, Urban Company surged 12.72 per cent after posting strong revenue growth and sequentially narrowing losses in the June quarter.
Divi’s Laboratories jumped 6.57 per cent after reporting a 65.5 per cent increase in quarterly profit, while APL Apollo Tubes gained 6.71 per cent on improved earnings. Blue Dart Express rose 3.32 per cent after reporting an 81 per cent jump in net profit, and Sportking India soared over 15 per cent following a more than two-fold increase in quarterly earnings.
On the downside, Zee Entertainment Enterprises slumped 14.54 per cent after SEBI barred the company from accessing the securities market for two months in connection with the unauthorised pledge of its Hyderabad land. The regulator also prohibited promoter Subhash Chandra and Managing Director Punit Goenka from the securities market for one year and imposed monetary penalties.
Muthoot Finance declined 7.33 per cent despite reporting record assets under management, as investors reacted to slower sequential loan growth. Narayana Hrudayalaya fell 5.63 per cent after margin contraction weighed on sentiment, while Jupiter Life Line Hospitals lost 2.56 per cent following weaker quarterly earnings.
IPOs attract strong investor interest
Primary market activity remained upbeat with MV Electrosystems receiving subscriptions of 188.41 times the shares on offer by the close of bidding on Monday. Juniper Green Energy also witnessed healthy demand, with the issue subscribed 7.92 times.
Outlook
Market experts believe the short-term trend remains positive as easing crude oil prices, continued FII inflows and improving global sentiment provide support to equities. Technically, analysts see immediate resistance around the 24,800 level on the Nifty, while the 24,100 zone is expected to provide strong support in the near term.
Disclaimer: This report is based on market data, exchange disclosures, company filings and publicly available information as of the close of trading today. Equity investments are subject to market risks, and readers should consult qualified financial advisers before making investment decisions.