Market Momentum Returns: Banks Lead the Rebound as Tariff Jitters Persist

Image Source: Moneycontrol

Indian Market Pulse at 1pm IST:

Sensex and Nifty staged a comeback on July 21, 2025, reversing early weakness as financial heavyweights countered global worries over trade tariffs and mixed Q1 earnings. The Indian rupee hovered above 86.2 to the dollar, and broader sector activity kept investors on alert.

Key Highlights

Sensex up over 350 points, hovering near 82,100, and Nifty crossed back above the crucial 25,000 mark after an early dip
Banking and cement sectors drove gains, while Reliance and select IT stocks lagged
Broader markets traded mixed; midcaps showed slight gains, but smallcaps underperformed
Global cues remained cautious due to US-EU tariff standoff and key central bank decisions abroad

Stock-Specific Movements

ICICI Bank surged more than 2 percent following robust Q1 results, reporting a 15.5 percent YoY profit increase and healthy growth in credit
HDFC Bank gained nearly 2 percent; both private sector giants led the Bankex, which rose 0.93 percent
UltraTech Cement added over 1 percent, reflecting strength in cement counters
Reliance Industries slipped more than 2 percent despite reporting record profits, as investors booked profits post-results
Ircon International outperformed with a 4 percent rally after announcing new infrastructure project wins
Union Bank of India dropped 3 percent after mixed earnings; Bandhan Bank and RBL Bank also faced declines due to weaker profitability

Select IT stocks, especially HCL Tech, traded negative, mirroring tepid sectoral results

Sector Highlights

Banking, cement, and metals outperformed, supporting broader indices
FMCG showed relative resilience amid hopes of a consumption revival, bucking the largely negative trend in IT and financials
Media and financial tech stocks pulled back, weighing slightly on market breadth
Q1 earnings volatility dictated much of the day’s sector-specific action

Global Markets Gist

US markets ended last week flat to slightly lower; S&P 500 and Nasdaq managed to hold gains but the Dow slipped as trade tensions escalated with news of potential US tariffs on EU goods
European markets prepared for possible retaliation as talks with the US neared an August 1 deadline for new tariff structures
Asia displayed mixed trends: Chinese stocks awaited a policy decision, Australian equities edged lower, and Japanese markets were closed for a holiday
Investors globally remained focused on the unfolding trade dispute, central bank policy moves, and a busy earnings calendar including US technology bellwethers

Summary Outlook

Despite the shadow of global trade disputes and patchy Q1 results, Indian equities mounted a spirited mid-session rebound powered by private banks and cement. Sector-specific earnings and international headwinds are expected to keep markets volatile. Traders are watching the Nifty’s 24,900 level for further direction and global developments for cues.

Sources: Business Standard, Economic Times, Angel One, CNBC, Moneycontrol, HDFC Sky, NDTV Profit, Wall Street Journal, CNBC Awaaz, Moneycontrol sector analysis, Times of India