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What is the story about?
The equity benchmark indices BSE Sensex and NSE Nifty extended gains for the third straight trading session on Friday (July 31), with the Sensex rising 166 points to close at 78,095 and the Nifty 50 advancing 66 points to settle at 24,384, supported by earnings-driven buying in financials and select heavyweight stocks.
The Nifty Bank index gained 117 points to end at 57,265, while the Nifty Midcap index climbed 274 points to 62,915, indicating continued strength in broader markets.
Here are the three key reasons why the stock market closed higher today:1. Earnings-driven rally in financial and auto stocks
Mahindra & Mahindra and Bajaj Finance gained between 4% and 8%, reacting to their earnings. Bajaj Finserv also moved in line with Bajaj Finance and ended more than 6% higher.
ALSO READ | Sun Pharma Q1 Results: Stock falls 3% from highs after US sales miss expectations
Hyundai Motor India surged 8% after maintaining its guidance despite reporting lower volumes in the first quarter.
2. Large-cap support from Reliance and Jio Financial
Jio Financial Services ended the session 4% higher and was among the top gainers on the Nifty. Reliance Industries extended its recent gains and closed 1% higher, providing additional support to the benchmark indices.
Among other earnings-driven movers, Torrent Pharmaceuticals gained 5%, GAIL (India) rose 4%, and Aditya Birla Capital advanced 3% following healthy first-quarter earnings.
ALSO READ | Dixon Tech Q1 Results: Stock falls 5% after other income aids profit, margins compress
3. Weakness in IT and select earnings misses capped gains
The rally was moderated by losses in information technology stocks, which largely ended in the red as chip-related stocks moved higher. Among individual stocks, Dixon Technologies declined 4% after its earnings missed estimates, while Mankind Pharma also fell 4%.
Eternal and Swiggy snapped their recent gaining streak and ended about 3% lower each. ITC slipped 1% ahead of its quarterly results. APL Apollo Tubes fell more than 4% before its earnings announcement, while LIC Housing Finance declined 3% after reporting its results.
From the Sensex basket, Bajaj Finance Ltd, Bajaj Finserv Ltd, Jio Financial Services Ltd, Mahindra & Mahindra Ltd, TVS Motor Company Ltd and Adani Ports & Special Economic Zone Ltd were the major gainers. Eternal Ltd, Tata Consultancy Services Ltd, Max Healthcare Institute Ltd, Infosys Ltd, ITC Ltd and Wipro Ltd were the biggest laggards.
ALSO READ | Strides Pharma shares decline 5% after Q1; profit rises 58%, margins contract
Market This Week
The benchmark indices staged a strong recovery this week (July 27-31), erasing all of last week's losses. The Nifty 50 advanced more than 2.5%, marking its biggest weekly gain in nearly four months as broad-based buying lifted the market.
The rally was widespread, with more than 40 Nifty stocks ending the week in the green, while nearly 15 constituents gained 5% or more during the period.
Among sectors, non-banking financial companies (NBFCs), automobile and information technology stocks emerged as the biggest gainers. Bajaj Finance topped the Nifty gainers list for the week, followed by Jio Financial Services, Infosys, Eternal, Bajaj Finserv, Mahindra & Mahindra, HCL Technologies and Maruti Suzuki India.
ALSO READ | Netweb Technologies shares gain nearly 10%, snap two-day losing streak; ICICI Sec sees 28% upside
On the other hand, Bharat Electronics (BEL), Adani Ports and Special Economic Zone, Coal India and Oil and Natural Gas Corporation (ONGC) were among the top losers on the Nifty during the week.
In the broader market, Kaynes Technology, Coforge, Laurus Labs, Swiggy, Hyundai Motor India and TVS Motor Company were among the leading gainers in the midcap segment. Meanwhile, Nuvama Wealth Management, Suzlon Energy, The Phoenix Mills, Bank of India, Angel One and Varun Beverages figured among the top midcap losers for the week.
Mehraboon J. Irani, Market Expert, on Sun Pharma, said, "As far as Sun Pharma goes, I think the whole sector is right now in a sweet spot because the market is now oscillating between IT on one hand, banks and metals on the other, while pharma appears relatively safer.
It has become attractive, and people are buying into it. Sun Pharma remains one of the frontline stocks, no doubt about it. But there are other interesting stocks like Torrent Pharma, which may look a little expensive, but I rate it number one in terms of execution and consistency. ROE and everything else are very attractive. It's a little expensive at the moment.
So I would say pharma is in a sweet spot. One can buy certain stocks in that space, but let's understand that the market has rediscovered pharma over the last two months, and quite a few of these stocks are up 5%, 10% or 15% from their recent lows."
The Nifty Bank index gained 117 points to end at 57,265, while the Nifty Midcap index climbed 274 points to 62,915, indicating continued strength in broader markets.
Here are the three key reasons why the stock market closed higher today:1. Earnings-driven rally in financial and auto stocks
Mahindra & Mahindra and Bajaj Finance gained between 4% and 8%, reacting to their earnings. Bajaj Finserv also moved in line with Bajaj Finance and ended more than 6% higher.
ALSO READ | Sun Pharma Q1 Results: Stock falls 3% from highs after US sales miss expectations
Hyundai Motor India surged 8% after maintaining its guidance despite reporting lower volumes in the first quarter.
2. Large-cap support from Reliance and Jio Financial
Jio Financial Services ended the session 4% higher and was among the top gainers on the Nifty. Reliance Industries extended its recent gains and closed 1% higher, providing additional support to the benchmark indices.
Among other earnings-driven movers, Torrent Pharmaceuticals gained 5%, GAIL (India) rose 4%, and Aditya Birla Capital advanced 3% following healthy first-quarter earnings.
ALSO READ | Dixon Tech Q1 Results: Stock falls 5% after other income aids profit, margins compress
3. Weakness in IT and select earnings misses capped gains
The rally was moderated by losses in information technology stocks, which largely ended in the red as chip-related stocks moved higher. Among individual stocks, Dixon Technologies declined 4% after its earnings missed estimates, while Mankind Pharma also fell 4%.
Eternal and Swiggy snapped their recent gaining streak and ended about 3% lower each. ITC slipped 1% ahead of its quarterly results. APL Apollo Tubes fell more than 4% before its earnings announcement, while LIC Housing Finance declined 3% after reporting its results.
From the Sensex basket, Bajaj Finance Ltd, Bajaj Finserv Ltd, Jio Financial Services Ltd, Mahindra & Mahindra Ltd, TVS Motor Company Ltd and Adani Ports & Special Economic Zone Ltd were the major gainers. Eternal Ltd, Tata Consultancy Services Ltd, Max Healthcare Institute Ltd, Infosys Ltd, ITC Ltd and Wipro Ltd were the biggest laggards.
ALSO READ | Strides Pharma shares decline 5% after Q1; profit rises 58%, margins contract
Market This Week
The benchmark indices staged a strong recovery this week (July 27-31), erasing all of last week's losses. The Nifty 50 advanced more than 2.5%, marking its biggest weekly gain in nearly four months as broad-based buying lifted the market.
The rally was widespread, with more than 40 Nifty stocks ending the week in the green, while nearly 15 constituents gained 5% or more during the period.
Among sectors, non-banking financial companies (NBFCs), automobile and information technology stocks emerged as the biggest gainers. Bajaj Finance topped the Nifty gainers list for the week, followed by Jio Financial Services, Infosys, Eternal, Bajaj Finserv, Mahindra & Mahindra, HCL Technologies and Maruti Suzuki India.
ALSO READ | Netweb Technologies shares gain nearly 10%, snap two-day losing streak; ICICI Sec sees 28% upside
On the other hand, Bharat Electronics (BEL), Adani Ports and Special Economic Zone, Coal India and Oil and Natural Gas Corporation (ONGC) were among the top losers on the Nifty during the week.
In the broader market, Kaynes Technology, Coforge, Laurus Labs, Swiggy, Hyundai Motor India and TVS Motor Company were among the leading gainers in the midcap segment. Meanwhile, Nuvama Wealth Management, Suzlon Energy, The Phoenix Mills, Bank of India, Angel One and Varun Beverages figured among the top midcap losers for the week.
Mehraboon J. Irani, Market Expert, on Sun Pharma, said, "As far as Sun Pharma goes, I think the whole sector is right now in a sweet spot because the market is now oscillating between IT on one hand, banks and metals on the other, while pharma appears relatively safer.
It has become attractive, and people are buying into it. Sun Pharma remains one of the frontline stocks, no doubt about it. But there are other interesting stocks like Torrent Pharma, which may look a little expensive, but I rate it number one in terms of execution and consistency. ROE and everything else are very attractive. It's a little expensive at the moment.
So I would say pharma is in a sweet spot. One can buy certain stocks in that space, but let's understand that the market has rediscovered pharma over the last two months, and quite a few of these stocks are up 5%, 10% or 15% from their recent lows."
