India’s benchmark equity index, the Nifty 50 (.NSEI), turned marginally positive in mid-day trade today, rising 0.05% to 24,834.65. The move comes after a cautious start to the session, with investors weighing mixed earnings reports, global cues, and sectoral divergence. While gains were modest, the uptick reflects resilience in select large-cap stocks and a tentative return of risk appetite.
Key Highlights
Nifty 50 last traded up 0.05%, reversing early losses and stabilizing above the 24,830 mark.
Broader market indices remained mixed, with Nifty Midcap100 and Smallcap100 showing mild declines.
Sectoral performance was uneven, with auto and pharma leading gains while IT and banking stocks lagged.
Market Drivers and Sentiment
Investor sentiment was buoyed by strong quarterly results from select FMCG and auto companies, including Maruti Suzuki and Tata Consumer.
Global cues remained neutral, with Asian markets trading flat and US futures showing limited movement ahead of key macro data releases.
Crude oil prices dipped slightly, offering relief to inflation-sensitive sectors and supporting domestic equities.
Sectoral Snapshot
Auto stocks outperformed, led by Maruti Suzuki (+1.20%) and Tata Motors (+0.95%), on the back of robust July dispatch data.
Pharma counters gained, with Sun Pharma (+1.37%) and Dr. Reddy’s (+0.88%) showing strength amid defensive buying.
IT stocks remained under pressure, with Infosys (-0.36%) and TCS (-0.08%) slipping due to margin concerns and cautious guidance.
Banking stocks were mixed, with HDFC Bank (+0.21%) and SBI (+0.31%) inching up, while Axis Bank (+0.86%) showed stronger momentum.
Technical Indicators and Valuation Metrics
Nifty 50’s intraday range was narrow, oscillating between 24,771.95 and 24,902.3.
The index’s forward P/E ratio stands at 23.07, slightly below its 10-year average, suggesting room for selective value buying.
Market breadth was slightly negative, with 23 stocks advancing and 27 declining within the index.
Global and Macro Context
The Indian rupee traded flat against the US dollar, stabilizing after recent volatility.
Bond yields remained steady, with the 10-year benchmark hovering around 7.12%.
Investors are awaiting cues from the US Federal Reserve’s policy outlook and domestic PMI data due later this week.
Outlook and Strategy
Analysts expect Nifty 50 to remain range-bound in the near term, with resistance seen around 25,000 and support near 24,700.
Domestic cyclical sectors such as NBFCs, consumer discretionary, and infrastructure are likely to attract interest amid improving macro indicators.
Traders are advised to maintain a stock-specific approach, focusing on earnings momentum and valuation comfort.
Conclusion
Today’s modest uptick in the Nifty 50 signals cautious optimism in the Indian equity market. While broader participation remains limited, select sectors are showing signs of strength. With earnings season in full swing and macro data on the horizon, investors will be closely watching for confirmation of trend reversal or consolidation.
Source Economic Times, Investing.com, LiveMint – July 31, 2025
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