Sensex hits 77,388 as IT gains offset bank losses, rupee holds steady
India's benchmark indices pushed higher on Thursday as technology stocks rallied, though investor focus remains on escalating Gulf tensions and upcoming corporate earnings.
The Sensex gained 200 points to close at 77,388, while the Nifty 50 rose 64 points to 24,142. The India VIX, a measure of market volatility, fell 3.5% to 13.27, indicating easing immediate anxiety among traders despite rising geopolitical risks.
Information technology stocks drove the benchmark's advance, with HCL Tech, Infosys, Tech Mahindra and TCS climbing between 1% and 3%. The Nifty IT index jumped nearly 2% in morning trade. Consumer and automobile names like Trent, Maruti Suzuki, Mahindra & Mahindra and Titan also added roughly 1% each.
Financial services stocks bucked the trend as Axis Bank, Bajaj Finserv, State Bank of India and HDFC Bank traded marginally lower. This dragged the Nifty Financial Services and Nifty PSU Bank indices into the red. Market breadth was still firmly positive, with 1,662 stocks advancing against 749 declines on the National Stock Exchange, while midcap and smallcap indices added up to 0.5%.
The market's composure comes despite a sharp escalation in the Iran-US conflict. The US reimposed a naval blockade on Iranian ports, leading to a drop in vessels transiting the Strait of Hormuz on Wednesday. Yet crude prices remained contained, with Brent slipping below $85 a barrel and WTI falling below $80, even as both sit significantly above last week's lows.
The rupee opened virtually unchanged at 96.2475 against the dollar, holding near the previous close of 96.2550. “While the softer dollar offered temporary support, higher energy prices remain a key concern for India’s import bill and the rupee’s outlook," said Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, forecasting a 95.75–96.45 trading range. Foreign investors sold a net Rs 736 crore of equities on Wednesday, though they have been net buyers in nine of eleven July sessions.
Earnings to dictate near-term direction
Looking ahead, analysts expect the market to trade in a tight range as quarterly results take centre stage. “Financials-both banks and NBFCs- are likely to report good set of numbers aided by robust credit growth now running at 18%," said VK Vijayakumar, Chief Investment Strategist at Geojit Investments. He also pointed to impressive growth in the automobile sector across all segments, and highlighted a potential bonus issue announcement by Paytm on July 20.
From a technical standpoint, Bajaj Broking expects the Nifty 50 to continue consolidating between 23,800 and 24,350. A sustained breach above the 24,350 ceiling is required to signal further strength and push the index toward 24,600.
