After a muted previous session, the bulls were back in action on Dalal Street with benchmarks hitting fresh record levels on July 12 led by Information Technology (IT) stocks after TCS' Q1 earnings met the expectations.
At close, the Sensex was up 622.00 points or 0.78 percent at 80,519.34, and the Nifty was up 186.20 points or 0.77 percent at 24,502.20.
For the week, BSE Sensex and Nifty50 rose more than 0.5 percent each.
Despite weak global cues, the Indian benchmarks opened higher and extended the gains as the session progressed with Nifty surpassed 24,500 for the first time and inched closer to 24,600, intraday.
Biggest gainers on the Nifty were TCS, Wipro, LTIMindtree, Infosys and HCL Technologies, while losers included Maruti Suzuki, Divis Labs, BPCL, Coal India and Asian Paints.
Among sectors, IT index surged 4.5 percent, and Media index added more than 2 percent. On the other hand, Realty index shed 1.5 percent, Power index down nearly 1 percent, Capital goods and Auto indices down 0.5 percent, respectively.
The BSE midcap and smallcap indices ended with marginal losses.
More than 240 stocks touched their 52-week high on the BSE including Wipro, Tech Mahindra, Axis Bank, ICICI Bank, Dr Reddy's Labs, Grasim Industries, ONGC, Britannia Industries, SBI Life, among other. Click to View Full List
Outlook for July 15
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services
Nifty after consolidating in the last few days, recovered smartly to make a fresh high above 24500 levels led by IT heavyweights. The index closed with handsome gains of 196 points (0.8%) at 24512 levels. Majority of the sector ended in green with buying seen in IT, Oil & Gas, and Banking. IT saw a fresh rally and was up 4% after TCS reported inline numbers.
Nifty after seeing profit booking during the week made a comeback on the back of a positive start to Q1 earnings from IT major TCS lifting sentiments across the street. We expect this momentum to continue supported by the expectation of healthy quarterly results, hope of a rate cut, and a pre-budget rally.
IT sector is expected to be in focus as other IT majors will come out with results. On Monday, markets will react to India's inflation data which will be released post-market. Key results next week include Jio Financials, HDFC Life, Asian Paints, LTI Mindtree, Infosys, Havells, Wipro, JSW Steel, Paytm, etc. Also globally, investors will take cues from China’s Q2GDP numbers, US Core Retail Sales data, and ECB interest rate decisions.
Ajit Mishra – SVP, Research, Religare Broking
Markets resumed their uptrend after a brief pause, gaining nearly one percent. Initially, a slight increase in IT majors and select heavyweights from other sectors sparked a sharp rise in the morning hours. However, some profit-taking at higher levels tempered the gains as the day went on. Ultimately, the Nifty index closed at 24,502, up by 0.77%.
In addition to the strong performance in the IT sector, the energy and FMCG sectors also performed well, while the realty and auto sectors lagged. The broader indices underperformed the benchmark, ending flat to slightly positive.
The rotational buying across heavyweights is helping the Nifty index maintain its positive momentum, but sustained levels above 24,500 are needed to reach the new milestone of 25,000. We recommend traders continue with a “buy on dips” approach, focusing on stock selection and trade management. Besides domestic factors, participants should closely monitor global indices, especially the US markets, for cues.
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