Stock market today: Sensex rebounds over 1,200 points, Nifty 50 hits record-high snapping 5-day losing streak

Stock market today: The domestic equity benchmarks Sensex and Nifty 50 snapped their five-day losing streak and logged their best session in seven weeks on Friday, July 26. The rebound was driven by heavy value-buying at lower levels and a recovery rally in blue-chips such as Infosys, Bharti Airtel and Reliance Industries amid positive global cues. 

The 30-share BSE Sensex jumped 1,292.92 points or 1.62 per cent to settle at 81,332.72. During the day, it soared 1,387.38 points or 1.73 per cent to 81,427.18. The NSE Nifty surged 428.75 points or 1.76 per cent to settle at an all-time closing high of 24,834.85. Nifty 50 hit a record high in the final minute of the trading session.

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In the broader market, the more domestically focussed BSE midcap gauge rose 2.12 per cent, and the smallcap index rallied one per cent. Investors' wealth soared ₹7.10 lakh crore following today's sharp rally. Market capitalisation of BSE-listed firms rallied by ₹7,10,235.45 crore to hit an all-time high of ₹4,56,92,671.33 crore ($5.46 trillion).

D-Street analysts said Tuesday's Union Budget 2024, which announced tax hikes on capital gains in equity investments and derivatives trading, also had a negative but short-term impact on domestic market sentiments.

Sensex and Nifty 50 recovered from post-budget losses and added 0.9 per cent and 1.24 per cent, respectively, for the week, posting the eighth week of gains — registering their best weekly winning streak in the last 14 years (since 2010). 

The frontline indices have been on a decline for the last week. Sensex tumbled 1,303.66 points, or 1.60 per cent, while the Nifty declined 394.75 points, or 1.59 per cent, in five straight days of losses to Thursday, weighed down by weaker-than-expected results from Reliance Industries, Wipro, Bajaj Finance, Axis Bank, and Nestle.

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On Friday, the rupee recovered from its all-time low level and appreciated six paise to 83.72 (provisional) against the US dollar, on strength in the domestic markets and expectations of fresh foreign inflows. At the interbank foreign exchange market, the local unit opened at 83.72 and touched an intra-day high of 83.69 and a low of 83.73 against the dollar during the session. 

In Asian markets, Seoul, Shanghai, and Hong Kong settled higher, while Tokyo stayed lower. European markets also traded in positive territory. Investors await the US personal consumption expenditures (PCE) data - the Federal Reserve's preferred inflation gauge - due later today to raise bets of a September rate cut.

Top gainers and losers today

As many as 2,652 stocks advanced, while 1,286 declined and 102 remained unchanged on the BSE. All the Sensex shares except for Nestle closed in green on Friday.  Bharti Airtel was the biggest gainer, rising by over 4.51 per cent. 

The other big gainers were Adani Ports, Sun Pharmaceuticals, Tata Steel, HCL Technologies, Infosys, JSW Steel, and Mahindra & Mahindra. Nestle was the only loser, closing lower by 0.07 per cent. Information technology stocks rose 2.3 per cent, after data showed that the US economy grew faster than expected in the second quarter. 

Also Read: Are railway, power, and defence PSU stocks still attractive after Budget 2024?

Improving growth outlook in the US helps Indian IT companies, which earn a significant share of their revenue from the country. Drug maker Cipla gained five per cent, powering the pharma index 2.3 per cent higher, after posting first-quarter profit above expectations, aided by higher sales.
 

Sectoral indices today

All the 13 major sectors advanced on the day. The indices ended higher, with telecommunication jumping 3.36 per cent, metal (3.19 per cent), tech (2.76 per cent), auto (2.35 per cent), commodities (2.26 per cent) and healthcare (2.10 per cent). Metal index gained three per cent. In the previous session, it had shed 1.3 per cent on demand concerns in top consumer China.
 

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Expert views on markets

"The domestic market experienced a substantial rebound on the start of the next month's expiry, recovering from recent losses incurred following the Union budget. This upturn was driven by positive reactions to the better-than-expected US GDP, which augurs well for global demand,'' said Vinod Nair, Head of Research, Geojit Financial Services.

‘’Investors are adopting buy on dip strategy, refocusing on quarterly earnings and stock-specific trends. Notably, gains were observed across sectors, with Metals and IT leading, and midcaps outperforming,'' added Nair.
 

Also Read: Budget 2024 in numbers: Capex target to tax hikes—Big digits of Modi 3.0’s first Union Budget at a glance
 

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said, ‘’Indian markets outperformed its global peers on the back of a strong across-the-board buying support after languishing in negative territory for the past five trading sessions.''

‘’The sharp rebound signifies that India remains a good long-term bet and the economy continues to show strong resilience in spite of global uncertainty and geo-political tensions. Most of the blue chips and mid-cap companies have reported better earnings, providing a major impetus to markets,'' added Tapse.

Technical view on Nifty 50

"The Nifty has experienced a downward consolidation breakout on the daily chart, suggesting a rise in optimism. A sustained trade above the very short-term moving average, the 21 EMA, gave the index bulls the strength to take the Nifty to new highs amid global market weakness,'' said Rupak De, Senior Technical Analyst, LKP Securities

‘’A fairly large green candle after several insignificant candles clearly signals a bullish trend ahead. The trend might remain positive as long as it stays above 24,500. On the higher end, the index might move towards 25,250,'' added De.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, and not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.