
- BSE Sensex closed at 84,058.90, up by 303.03 points or 0.36%. The index traded between a range of 84,089.35 to 83,645.41.
- NSE Nifty50 ended at 25,637.80, gaining 88.80 points or 0.35%, after trading within the 25,654 to 25,523 range.
It was clear that investor sentiment remained upbeat, as the broader market also performed well. Nifty Midcap100 gained 0.27%, and Nifty Smallcap100 jumped by 0.91%.
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Impact on the Stock Market
Today’s rally was largely driven by strong sector performance, with the Nifty Oil & Gas index standing out, climbing by 1.19%. This sectoral rise was an indication of strong market confidence, particularly in the energy space, even as some other sectors such as IT, FMCG, and Realty faced minor declines. Here’s a snapshot of key sector performances:
- Nifty Oil & Gas: +1.19%
- Nifty IT, FMCG, Realty: Showed minor declines.
Sector/Index | Performance |
IT & BPM sector | -0.44% |
Healthcare sector | 0.71% |
Oil & Gas sector | 1.19% |
Real estate sector | -1.55% |
PSU Bank in India | 0.47% |
Top gainers today
Company | Price (in ₹) | Change % |
Jio Financial Share Price | 323.45 | 3.50 |
Asian Paints Share Price | 2,358.70 | 3.01 |
Apollo Hospital Share Price | 7,308.50 | 2.91 |
IndusInd Bank Share Price | 857.70 | 2.58 |
Adani Enterpris Share Price | 2,646.30 | 2.32 |
Top losers today
Company | Price (in ₹) | Change % |
TATA Cons. Prod Share Price | 1,124.30 | -1.84 |
Dr Reddys Labs Share Price | 1,301.00 | -1.55 |
Trent Share Price | 6,019.50 | -1.43 |
Wipro Share Price | 265.05 | -1.29 |
Eternal Share Price | 261.86 | -1.25 |
Market Aftermath: Impact on Stocks
Dixon Technologies: Rally Continues
Dixon Technologies has been on a roll recently, and today, its shares rose over 4%, reaching an intraday high of ₹14,954. This rally was fueled by a positive brokerage report from Nomura, which raised its target price for the company to ₹21,409. Nomura believes that Dixon is well-positioned to dominate India’s mobile electronics manufacturing space, with a growing market share in the sector. Dixon’s expansion in the electronics manufacturing services (EMS) is expected to consolidate its leadership position as fewer players are set to dominate the space. This bullish outlook from Nomura has significantly boosted investor confidence in the stock.
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IT Sector Surges on US Fed Hopes
The Nifty IT index saw positive movement today, with stocks like Coforge and HCL Technologies gaining up to 3%. The rally in IT stocks is linked to the Nasdaq rally, with US markets nearing record highs and rising hopes of an early rate cut by the US Federal Reserve. The potential for an early Fed rate cut has ignited investor optimism in US-based tech stocks, which in turn benefits Indian IT companies that derive substantial revenues from the US market.
The Nasdaq 100 has surged by 30% since its lows in April, and the news of a potential US Fed rate cut has been seen as a strong tailwind for the global tech sector. This could increase discretionary spending in the US, indirectly benefiting Indian IT firms with strong US exposure.
Also read: Adani Total Gas Share Price Up 7% – Energy Stocks Rally
Metal Stocks Rally as Trump Tariff Deadline Eases
Another major story today was the rise in metal stocks, with Vedanta and Tata Steel leading the charge. The Nifty Metal index gained 1% today, extending its rally for the sixth consecutive session, having surged by nearly 7% in this period. The catalyst for today’s surge came from a statement by the White House Press Secretary, who suggested that the July tariff deadline for higher import tariffs imposed by President Trump could be extended. This eased investor concerns about the looming deadline and helped push metal stocks higher.
Further, a weaker US dollar also supported metal stocks, as it provides an export advantage to Indian metal producers by making their products more competitive globally. With the potential for an extension of the tariff deadline, the metal sector looks poised to continue its strong performance in the short term.
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Crude Oil Prices Rise
Global crude oil prices saw a modest increase today, as the market focused more on economic and supply factors rather than geopolitical tensions. Brent crude oil futures were up by 0.67%, trading at $67.14, while WTI crude oil futures rose by 0.64%, at $65.66.
Oil prices were initially impacted by geopolitical tensions, such as the bombing of nuclear sites in Iran, but have since stabilised. As the market shifts focus to the OPEC meeting and potential trade agreements between the US and China, oil prices may continue to see fluctuations. The US-China trade deal is expected to ease market concerns, providing some support for oil prices in the medium term. The July OPEC meeting is also expected to be a key event, as decisions on production levels will likely influence oil prices in the coming months.
Conclusion
In conclusion, today was a positive day for Indian markets, with strong performances in Dixon Technologies, IT stocks, and metal stocks. The market’s overall sentiment remains optimistic, as investors continue to look forward to developments in the US Federal Reserve’s rate policy and the easing of trade tensions between the US and China. Despite some sectoral fluctuations, the market breadth and gains across various indices suggest that the bulls are still in charge, with ample opportunities for both short-term traders and long-term investors.
For more stock market insights, check out the StockGro blog.