- Dalal Street defied weak global cues, driven by banks, IT.
- Index heavyweights surged significantly, while the broader market declined.
- FIIs sold equities; domestic investors provided partial support.
Dalal Street maintained a bullish tone on Friday, July 17, with heavyweight buying in private Banks, information technology and Reliance Industries helping the benchmark indices defy weak global cues. Around noon, the Senseng at 77,9x was tradi52.12, up 765.25 points or 0.99 per cent, while the Nifty 50 stood at 24,252.60, gaining 179.85 points or 0.75 per cent. The rally, however, remained concentrated in index heavyweights rather than the broader market. Banking stocks provided strong support, with the Nifty Bank rising 0.87 per cent to 58,080.35.
The Nifty Financial Services index also advanced 0.92 per cent. Broader indices moved in the opposite direction, with the Nifty Midcap 100 declining 0.67 per cent and the Nifty Smallcap 100 falling 0.91 per cent. This divergence showed that investors remained selective despite the sharp rise in the Sensex and Nifty. Among sectors, the Nifty Private Bank index led the gainers with a rise of 1.26 per cent, supported by Federal Bank, Kotak Mahindra Bank, ICICI Bank and HDFC Bank.
The Nifty IT index gained 1.15 per cent after Tech Mahindra delivered better than expected quarterly numbers and HCL Technologies announced a seven year contract. Realty, banking, auto and oil and gas indices also traded higher.
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On the losing side, Nifty Pharma dropped 1.42 per cent, while media and metal stocks remained under pressure. Stock specific action remained lively. Jio Financial Services gained around 3.3 per cent after its quarterly profit jumped 155.7 per cent year on year to Rs 830.25 crore. Tech Mahindra advanced after reporting a 31.7 per cent rise in profit and a 330 basis point expansion in EBIT margin to 14.4 per cent.
Reliance Industries rose ahead of its Quarterly Results. In contrast, CEAT plunged nearly 7 per cent after its profit fell 96.4 per cent to Rs 4 crore, while Wipro declined around 1.6 per cent following margin contraction and subdued quarterly guidance. Institutional flows remained a concern. Provisional data for July 16 showed foreign institutional investors selling Indian equities worth Rs 4,205.56 crore.
Domestic institutional investors bought shares worth Rs 2,986.41 crore, providing only partial support against the foreign outflow. Global cues were firmly negative. The Dow Jones declined 0.20 per cent, the S&P 500 fell 0.51 per cent and the Nasdaq Composite dropped 1.47 per cent overnight. Asian markets also witnessed heavy selling, with Japan’s Nikkei falling more than 5 per cent and Taiwan losing nearly 6 per cent. Brent crude traded near USD 85 per barrel amid escalating Middle East tensions, while the Dollar Index hovered around 100.7.
The Nifty now faces immediate resistance near 24,300, followed by the 24,500 to 24,600 zone, while 24,000 remains an important support. Reliance Industries’ results after market hours and earnings from major private banks over the weekend could set the tone for the next trading session. Investors may also track crude oil, geopolitical developments and foreign fund flows.
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