All sectoral indices close in green except pharma as telecom, FMCG, media, auto & oil gas gain ~1% each; FIIs turn net buyers
Indian equity markets ended Tuesday’s session on a buoyant note, with benchmark indices posting solid gains driven by broad-based buying across sectors. The BSE Sensex climbed 370.25 points or 0.45% to close at 81,644.75, while the NSE Nifty50 advanced 112.40 points or 0.46% to settle at 24,988.35. Market breadth remained positive with over 2,100 stocks advancing against 1,400 decliners on the BSE.
The rally was underpinned by strong performance in auto, telecom, FMCG, media, and oil & gas sectors, each gaining approximately 1%. Mid-cap and small-cap indices significantly outperformed their large-cap peers, with the BSE Midcap index surging 1.8% and Smallcap index jumping 2.1%. The outperformance was largely attributed to renewed hopes of GST rate cuts and favorable policy measures expected from the upcoming budget session.
Market Performance Snapshot:
- Sensex: Open: 81,280 | High: 81,695 | Low: 81,210 | Close: 81,644.75 (+0.45%)
- Nifty50: Open: 24,885 | High: 25,012 | Low: 24,875 | Close: 24,988.35 (+0.46%)
- Bank Nifty: 52,245.80 (+0.82%)
- India VIX: 13.45 (-2.8%)
Sectoral performance painted a largely positive picture with nine out of ten major indices closing in the green. Auto stocks emerged as the standout performers, with the Nifty Auto index gaining 1.2% led by Maruti Suzuki (+2.8%), Mahindra & Mahindra (+2.1%), and Tata Motors (+1.9%). The rally in auto stocks was fueled by market speculation about potential GST rate rationalization for the automobile sector, which could boost demand in the upcoming festive season.
Telecom stocks also witnessed strong momentum with the Nifty Telecom index advancing 1.1%. Bharti Airtel led the charge with a 2.2% gain, followed by Vodafone Idea (+1.8%) after reports suggested improved revenue visibility for the sector. FMCG stocks joined the party with the Nifty FMCG index rising 0.9%, supported by Hindustan Unilever (+1.5%) and ITC (+1.2%) on expectations of improved rural demand.
The only laggard was the pharma sector, with the Nifty Pharma index declining 0.3% due to profit-booking in recent outperformers. Dr. Reddy’s Laboratories (-1.8%) and Cipla (-1.2%) were among the notable losers in the space.
Top 5 Gainers:
- Maruti Suzuki: +2.8% (₹12,845) – GST cut hopes boost sentiment
- Bharti Airtel: +2.2% (₹1,685) – Strong revenue outlook
- Mahindra & Mahindra: +2.1% (₹2,890) – Auto sector optimism
- Tata Motors: +1.9% (₹1,025) – Festive season demand expectations
- Asian Paints: +1.7% (₹2,950) – Rural recovery hopes
Top 5 Losers:
- Dr. Reddy’s Labs: -1.8% (₹6,420) – Profit booking after recent gains
- Cipla: -1.2% (₹1,580) – Sector rotation away from pharma
- ONGC: -0.9% (₹285) – Oil price concerns
- Coal India: -0.8% (₹425) – Weak demand outlook
- NTPC: -0.7% (₹385) – Power sector headwinds
Global cues provided a mixed backdrop for Indian markets. US markets closed higher overnight with the Dow Jones gaining 0.4%, while the S&P 500 and Nasdaq edged up 0.2% each. Global cues are mixed, Dow closed higher, while S&P 500 and Nasdaq slipped on Fed rate uncertainty. Asian markets showed a positive bias with Japan’s Nikkei rising 0.6% and Hang Seng advancing 0.8%. The positive sentiment was supported by expectations of continued monetary easing by central banks globally.
Gift Nifty futures were trading 25 points higher at 25,015, indicating a positive start for Wednesday’s session. The rupee closed marginally stronger at 83.94 against the dollar, while crude oil prices remained stable around $77 per barrel.
FII/DII Flows (Provisional): Foreign Institutional Investors turned net buyers after three sessions of selling, purchasing equities worth ₹1,850 crore. Domestic Institutional Investors continued their buying spree, adding ₹2,240 crore to their equity holdings. The sustained domestic flows have been providing crucial support to Indian markets amid global uncertainties.
Technical Analysis & Trading Strategies:
From a technical perspective, the Nifty has successfully defended the crucial 24,800 support level and is now approaching the key resistance zone of 25,000-25,050. Market analysts suggest that a decisive break above 25,000 could trigger fresh buying towards 25,200-25,300 levels.
“The market structure remains constructive with the index forming higher lows. Key support levels to watch are 24,850 and 24,750,” said Rajesh Palviya, Head of Technical Research at Axis Securities. “For intraday traders, buying on dips near 24,900 with a stop loss of 24,850 could target 25,050-25,100 levels.”
For swing traders, experts recommend a buy-on-dips strategy with a focus on auto, telecom, and select FMCG stocks. The banking sector, which has been underperforming, could see a catch-up rally if global sentiment improves further.
Resistance levels for Nifty: 25,000, 25,050, 25,200 Support levels for Nifty: 24,850, 24,750, 24,650
What to Watch in Next Session:
Market participants will closely monitor the release of wholesale price inflation data for July, which is expected to remain in the 2-3% range. Any significant deviation from expectations could impact monetary policy expectations. Additionally, the ongoing earnings season continues with several mid-cap companies scheduled to announce their quarterly results.
The Reserve Bank of India’s upcoming monetary policy committee meeting minutes, due for release this week, will be closely watched for insights into the central bank’s stance on interest rates. Global factors including the Jackson Hole symposium and any developments on the geopolitical front will also influence market sentiment.
Corporate earnings from the banking and auto sectors will remain in focus, with investors looking for commentary on demand trends and margin outlook. The government’s potential announcement on GST rate rationalization could be a key catalyst for auto and consumer discretionary stocks.
Oil prices and rupee movement will be critical factors to watch, especially given their impact on import-dependent sectors. Any significant change in crude prices could affect oil marketing companies and paint & chemical stocks.
Tuesday’s session showcased the resilience of Indian markets, with broad-based buying across sectors signaling healthy underlying momentum. The outperformance of mid-cap and small-cap stocks, coupled with renewed optimism around policy measures, has boosted investor confidence. While global uncertainties persist, sustained domestic flows and expectations of favorable government policies are providing strong support to Indian equities. Traders should remain selective and focus on sectors with strong fundamentals and positive policy tailwinds.
