Stock Market Today, July 31: Indian benchmark indices extended their gains in morning trade on Wednesday, July 29, with the Sensex climbing over 850 points and the Nifty 50 reclaiming the 24,230 mark.
Strong buying in IT, metal and FMCG stocks, along with positive global cues, lifted investor sentiment as markets awaited the US Federal Reserve’s policy decision later in the day.
At around 10:20 am, the BSE Sensex was trading 852.27 points, or 1.11%, higher at 77,618.19, while the Nifty 50 advanced 246.40 points, or 1.03%, to 24,231.75.
IT Stocks Continue to Lead the Rally
The rally was led by technology shares, with the Nifty IT index rising 2.69%. Metal stocks also witnessed strong buying, pushing the Nifty Metal index up 1.92%, while Nifty FMCG gained 1.52%.
Among Sensex constituents, Infosys emerged as the top gainer, rising 3.83%, followed by Hindustan Unilever (+3.77%), LT (+2.99%), Tata Steel (+2.55%), TCS (+2.30%) and Bharti Airtel (+2.24%). Banking stocks also remained supportive, with HDFC Bank, ICICI Bank and Kotak Mahindra Bank trading higher.
On the losing side, BEL, Adani Ports, IndiGo, Power Grid, Sun Pharma and Axis Bank traded in the red, although losses remained limited.
Broader Markets Trade Firm
The broader market also remained upbeat, reflecting widespread buying interest. The Nifty Midcap 100 gained 0.57%, while the Nifty Smallcap 100 rose 0.75%.
The India VIX, often referred to as the market’s fear gauge, declined 3.06% to 12.18, indicating lower volatility expectations.
V K Vijayakumar, chief investment strategist at Geojit Investments, said “The present range bound construct of the market is likely to be broken on the upside assisted by the fairly valued stocks in the Nifty. This might take time. Big conviction buys by the FIIs need clarity on the trajectory of the crude price and progress of the monsoon. The sharp correction in chip stocks in South Korea is an advantage for India.”
The Fed decision on rates tonight will be keenly watched by the market. Even though inflation is a concern in the US, the Fed is likely to hold rates now and move to a rate hike in the next meeting. Even when it holds rates the Fed is likely to sound hawkish to send a clear message to markets, he added.
“The Fed’s expected policy of holding rates is unlikely to impact the Indian market since it is already discounted by the market. However, if the fed goes for a surprise early hike that will have slightly negative implications for Indian markets. Rising yields in the US will drive the FIIs to to US bonds, away from EM equities,” Vijayakumar said.
Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth-tech firm, said, “Indian equity markets are likely to open higher, with GIFT Nifty futures trading near the 24,200 level in early trade, suggesting a gap-up opening relative to the Nifty’s previous close of 23,985. Despite the positive opening cues, underlying sentiment is expected to remain cautious as geopolitical tensions in the Middle East continue to dominate investor focus.”
Fresh strikes by US and Saudi forces on Iran-linked militant sites in Iraq, alongside reports of Iranian missile strikes on US military bases, have intensified geopolitical tensions and revived concerns over energy supply disruptions. As a result, WTI crude oil has surged back to around $82 per barrel after briefly falling to near $78, reflecting a renewed geopolitical risk premium as markets closely track developments in the Middle East, he added.
Technical View
Anand James, chief market strategist at Geojit Investments Ltd, said, “While the turn lower from the 10 day SMA evolved on anticipated lines, our key pivot of 23891 stepped in to arrest declines, keeping the upside hopes alive. However, it would require consistent trades above 24100 or a direct rise above 24220 to act as further signals of upside continuation.”
