Sensex up 250 pts, Nifty tests 25,200 as US-Japan trade deals lifts sentiment

Tata Motors, Jio Financial Services, Maruti Suzuki, L&T, and Coal India were the top gainers on the Nifty.

Benchmark indices Nifty and Sensex were off to a strong start on Wednesday, July 23, tracking upbeat global cues after the US and Japan sealed a trade deal, raising hopes of further agreements—possibly between the US and India. Auto, IT and oil & gas stocks opened higher, while the broader markets were flat.

At about 9:30 am, the Sensex was up 264.92 points or 0.32 percent at 82,451.73, and the Nifty was up 81.00 points or 0.32 percent at 25,141.90. About 1507 shares advanced, 883 shares declined, and 123 shares remained unchanged.

"The 11th new record high for 2025 set by S&P 500 yesterday is an indication of the direction and resilience of equity markets globally. Markets are climbing all walls of worries, and valuation concerns have been put on the back burner. In the near term this resilience is likely to continue," V KVijaykumar, Chief Strategist at Geojit Investments Limited, said.

Experts also add that upside in Q1 earnings will be the critical point to sustain the current premium valuations. Continued profit booking by the FIIs exerts downward pressure, while steady inflows from DIIs could support a range-bound movement with a positive bias towards Q1 results and the trade deal.

Among stocks, Dixon Tech shares rallied 2 percent after the company reported its first quarter earnings. A slew of brokerages have dished out bullish calls on the stock, while Morgan Stanley remains underweight, citing a broad-based Q1 miss. The EMS major on July 22 reported a net profit of Rs 225 crore for the first quarter of the financial year 2026. This marks a 68 percent on-year jump from the Rs 134 crore net profit reported in the corresponding quarter of the previous financial year.

One 97 Communications Ltd, the parent of Paytm, surged over 3 percent after it reported consolidated net profit of Rs 123 crore in the quarter ended June 30, 2025 as against net loss of Rs 839 crore a year ago, aided by strong lending business and as it kept a tight lid on expenses, especially marketing and employee cost. Jefferies, Citi Research, and Bernstein gave bullish calls.

Colgate Palmolive (India) slipped 2 percent after the company reported an 11.8 percent year-on-year decline in net profit to Rs 321 crore for the quarter ended June 30, 2025. Revenue from operations also fell 4.3 percent to Rs 1,433 crore, while total income declined to Rs 1,433 crore from Rs 1,496.71 crore in the corresponding quarter of the previous year.

As long as the index holds above 24,800, scope for supportive buying on dips remains intact. A decisive close above 25,250 is essential to negate the prevailing bearish undertone and revive bullish sentiment. Relative Strength Index (RSI) continues to hover below the neutral 50 mark, confirming the lack of positive momentum and reinforcing the current cautious market tone. Until a directional breakout occurs on either side, the index is likely to remain trapped in a low-volatility, range-bound environment.

Tata Motors, Jio Financial Services, Maruti Suzuki, L&T, and Coal India were the top gainers on the Nifty. Laggards on the index included Titan Company, Tata Consumer Products, SBI Life Insurance, HDFC Bank, and SBI.