The Indian stock market successfully snapped a losing streak on Monday, closing in positive territory driven by significant value buying, particularly in the banking sector.
- Sensex Performance: The Sensex surged by 442.61 points (0.54%) to close at 82,200.34. The index experienced a volatile session, hitting an intra-day low of 81,518.66 before recovering.
- Nifty50 Performance: The Nifty50 also posted gains, rising 122.30 points (0.49%) to settle at 25,090.70.
Market Drivers and Sectoral Insights
The market’s positive momentum was supported by several key factors and sectoral movements:
- Manufacturing Sector: The manufacturing segment was a major gainer, with investors reacting positively to the government’s review of expanded infrastructure spending. This sentiment is reinforced by the latest economic data: the HSBC India Manufacturing PMI for June 2025 rose to a 14-month high of 58.4, and the Services PMI also showed robust growth, climbing to 60.7.
- Banking & Auto Heavyweights: Banking stocks were a primary driver of the rally. The Bank Nifty soared 430 points (1.62%), while Nifty Auto jumped 160 points (0.67%).
- Top Gainers & Losers:
- In the green: Zomato, ICICI Bank, Adani Ports, HDFC Bank, Mahindra and Mahindra, BEL, Kotak Bank, Tata Motors, Bajaj FinServ, L&T, Power Grid, and Kotak Mahindra Bank.
- In the red: Reliance, HCL Tech, Hindustan Unilever, TCS, and ITC.
- Broader Market: Broader indices saw a sharp rally, with the Nifty 100 closing 121 points higher, the Nifty Midcap 100 surging by 363.85 points, and the Nifty Next 50 settling 278 points up.
Market Outlook and Key Cues
Persistent global uncertainties continue to temper overall market gains, with investors closely monitoring several upcoming events:
- US-India Trade Negotiations: The “persistent uncertainty” noted by Ashika Institutional Equities remains a key concern. The fifth round of negotiations for the Bilateral Trade Agreement (BTA) concluded on July 17, with both countries aiming for an interim deal before a tariff deadline of August 1. However, disagreements persist over key sectors such as agriculture and automobiles.
- Fed Chair Powell’s Speech: The focus has shifted to this week’s scheduled speech by US Fed Chair Jerome Powell. Investors will be seeking new cues on the Federal Reserve’s monetary policy, which is expected to influence the dollar index and global market sentiment.
- Indian Rupee: The rupee traded weak, down 0.18% at 86.25, ahead of Powell’s comments.
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