Indian Stocks Rise: Bajaj Finance, Hyundai Lead Gains Amid IT Profit Booking

Indian equities maintained a mildly positive bias on Friday, July 31, with the Sensex closing up 116.49 points (0.15%) at 78,044.64 and the Nifty 50 gaining 48.80 points (0.20%) to 24,365.95. This upward movement occurred despite significant profit booking within technology shares.

Index Performance Overview

• Sensex closed at 78,044.64, up 116.49 points (0.15%).
• Nifty 50 reached 24,365.95, gaining 48.80 points (0.20%).
• Nifty Midcap 100 advanced approximately 0.4%.
• Nifty Smallcap 100 gained nearly 0.7%.
• Market breadth showed 2,341 stocks advancing against 1,283 declines.

The broader market demonstrated a stronger performance compared to the benchmark indices, with both midcap and smallcap segments recording notable gains. Nifty Bank remained stable, hovering around the 57,150 mark throughout the session.

Sectoral Drivers and Key Movers

• Nifty Financial Services saw gains of about 1%.
• Nifty Auto also advanced by approximately 1%.
• Bajaj Finance shares jumped 6-7%.
• Hyundai Motor India rallied nearly 7%.
• Astra Microwave surged around 14%.

Bajaj Finance bolstered financial stocks, driven by a 28% year-on-year rise in standalone net profit to Rs 6,081 crore and a 23% increase in net interest income to Rs 12,571 crore. Hyundai Motor India’s rally stemmed from positive brokerage sentiment regarding its production outlook, export recovery, and product pipeline.

Astra Microwave saw a significant surge after securing a substantial Rs 2,205 crore order from Hindustan Aeronautics, reflecting strong order book momentum.

Sectoral Laggards and Underperformers

• Nifty IT declined approximately 2.3%.
• Thermax plunged nearly 14%.

In contrast, the Nifty IT index was the primary laggard, experiencing profit booking after a five-session rally, despite having recorded a 16% gain for July. Thermax shares fell sharply following an 83.4% drop in its June quarter profit, attributed to project cost overruns and weaker export sales.

Institutional Flows and Global Cues

• Foreign Institutional Investors (FIIs) were net buyers of Rs 3,623.51 crore in the cash market on July 30.
• Domestic Institutional Investors (DIIs) sold shares worth Rs 1,864.03 crore on the same day.
• Brent crude eased towards USD 88 per barrel.

Global market sentiment remained largely favorable, with Wall Street closing higher and most Asian markets exhibiting positive trends. The rupee’s movement and developments in the Middle East are also key factors for traders to monitor.

Market Outlook

For the immediate future, the Nifty’s critical hurdle is positioned near 24,400, while support levels are identified between 24,100-24,000. Traders are advised to closely monitor upcoming quarterly earnings reports, crude oil price fluctuations, and the Indian rupee’s performance.