Weekly Market Wrap: Nifty, Sensex Gain 1%; IT Index Surges Over 4%
- Nifty50 and Sensex gained about 1% each for the week ending July 18.
- Nifty IT index surged over 4%, making it the top sectoral performer.
- Broader markets also saw positive momentum, but specific gainers and losers were not detailed.
- Market participants are now eyeing global cues and corporate earnings for direction.
Indian equity benchmarks closed the week with modest gains, as the Nifty50 and the Sensex each rose by about 1%. The rally was led by a sharp jump in information technology stocks, with the Nifty IT index surging over 4% during the period. The broader market also participated in the uptick, though sectoral performance remained mixed.
Nifty IT Leads Sectoral Charge
The Nifty IT index was the standout performer this week, climbing more than 4%. The rally came amid renewed optimism about global demand for Indian software services and easing concerns over interest rate trajectories in key export markets. Analysts pointed to strong quarterly earnings from some top IT firms as a catalyst.
Other sectoral indices like banking and auto also posted gains, but their performance lagged behind technology. The Nifty Bank index rose around 0.5%, while the Nifty Auto index added roughly 0.8% for the week. Defensives such as FMCG and pharma remained relatively flat.
Top Gainers and Losers
Among individual stocks, several IT heavyweights featured on the list of top gainers. Shares of Infosys, Tata Consultancy Services, and HCL Technologies rose between 3% and 5% over the week. On the flip side, some metal and realty stocks saw profit booking, ending the week in the red.
Market breadth was positive, with more stocks advancing than declining on the BSE. However, the gains were not broad-based across all sectors, indicating selective buying interest. The midcap and smallcap indices also inched up, mirroring the overall positive sentiment.
Global Cues and Domestic Factors
Global markets provided a supportive backdrop, with US equities edging higher on hopes of a soft landing for the world's largest economy. Falling crude oil prices also eased inflation concerns for import-dependent India. Domestically, progress on the monsoon front and steady macroeconomic data added to investor confidence.
Foreign portfolio investors were net buyers during the week, though domestic institutional investors remained cautious. The rupee traded in a narrow range against the US dollar, hovering near the 83.50 mark.
What to Watch Next Week
Attention will now shift to upcoming quarterly earnings from major companies across sectors. Traders will also monitor the Federal Reserve's policy meeting minutes and any cues on interest rate decisions. The market is likely to remain range-bound with a positive bias, though volatility cannot be ruled out.