Nifty edges higher as IT stocks lead gains; SBI Life, ONGC slip

Markets opened on a positive note on Thursday, with the Nifty 50 rising 67.90 points or 0.28 per cent to 24,146.40 and the Sensex gaining 261.79 points or 0.34 per cent to 77,447.22 at 9.17 am, building on Wednesday's marginal recovery. The Nifty had closed the previous session at 24,078.50, while the Sensex ended at 77,185.43. Both indices opened firmer. The Nifty at 24,142.10 and the Sensex at 77,388.42, before extending gains in early trade.

Information technology stocks dominated the gainers' list, with HCL Technologies leading the pack, rising 2.40 per cent to ₹1,196, touching its 52-week high of ₹1,196 on volumes of 2.26 lakh shares worth ₹2,691.49 lakh. Infosys followed, advancing 1.64 per cent to ₹1,094 on volumes of 2.39 lakh shares valued at ₹2,609.22 lakh. Wipro gained 1.26 per cent to ₹176.85 on 3.71 lakh shares, while Tech Mahindra rose 1.24 per cent to ₹1,517.30. Hindalco from the metals space bucked the broader sectoral weakness to rise 1.30 per cent to ₹968.20.

On the losing side, SBI Life Insurance was the top decliner, falling 0.99 per cent to ₹1,847.90 on volumes of 25,633 shares worth ₹476.20 lakh. Bajaj Finserv shed 0.44 per cent to ₹1,841.40 and ONGC slipped 0.27 per cent to ₹246.51 on volumes of 95,033 shares valued at ₹234.85 lakh. Eicher Motors declined 0.18 per cent to ₹7,391.50 and HDFC Bank eased 0.15 per cent to ₹814.20, though it remained among the most actively traded stocks with nearly 11.96 lakh shares changing hands, generating ₹9,746.21 lakh in value.

The market outlook for Q1 results season is being watched closely. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that financials, both banks and NBFCs, are likely to report a good set of numbers, aided by robust credit growth now running at 18 per cent. He added that automobiles is a sector to watch closely, since growth numbers for Q1 would be impressive as the sector continues to exhibit momentum, aided by GST cuts and easy availability of finance. He pointed out that most segments, cars, SUVs, two-wheelers, commercial vehicles, and exports, are doing well.

On platform and digital companies, Vijayakumar noted that Paytm's announcement of a bonus issue at its July 20 board meeting is an important development, adding that..."platform companies which have turned profitable and continue to grow impressively will be rewarded by the market."

Technically, the market remains in a cautious consolidation. Sachin Gupta, VP–Research at Choice Broking, noted that..."the immediate trading range for the Nifty is expected between 23,850 and 24,250, while Bank Nifty is likely to trade within the 57,300–58,500 band." He added that..."volatility is likely to stay contained given the cooling VIX," which eased to 13.27, down 3.49 per cent, indicating reduced market stress. Bank Nifty had closed the previous session at 57,757.85, up 295.55 points.

Shrikant Chouhan, Head of Equity Research at Kotak Securities, cautioned that..."24,000/77,000 continues to serve as the key support," and that a decisive breach below this level could accelerate profit booking towards the 50-day Simple Moving Average around 23,800/76,300. He recommended maintaining a stock-specific trading approach rather than aggressive directional positions until a clear breakout or breakdown emerges.

On the institutional flows front, Foreign Institutional Investors turned net sellers on July 15, offloading ₹735.83 crore worth of equities, while Domestic Institutional Investors continued their buying streak, purchasing ₹704.93 crore, providing a cushion against FII outflows.

Global cues remain mixed. While softer US inflation data lifted Wall Street overnight and reinforced expectations of a less hawkish Federal Reserve, Asian markets traded sharply lower. Japan's Nikkei 225 fell over 3 per cent and South Korea's Kospi dropped more than 6 per cent on concerns over West Asia tensions and elevated crude prices. The IMF has warned that prolonged disruptions in th...