The Nifty 50 declined for the second consecutive session on Tuesday, settling at 24,187, down 50 points or 0.21%, while the Sensex fell 238 points to close at 77,470. According to The Hindu BusinessLine, the session marked the second straight day of benchmark trading within a narrow range of just 127 points, representing the tightest band since July 10. Over the past 25 sessions, Nifty has oscillated between 24,530 and 23,785, with key moving averages flattening and momentum indicators remaining subdued. As per Sarvam Goel, Founder of Pocketful, Tuesday's session had multiple competing factors including earnings, expiry, and geopolitics all landing on the same day, with the index choosing to lean weak despite the minor decline being easily absorbed.
Among Nifty stocks, Shriram Finance, Bajaj Finserv, and Eicher Motors were the top gainers, while HDFC Bank and Infosys emerged as the biggest drags, as reported by The Hindu BusinessLine. Sectoral performance remained mixed, with Auto leading the rally buoyed by blockbuster quarterly numbers, Bajaj Auto reporting a 46% jump in net profit to ₹3,226 crore with revenue up 37% YoY, while TVS Motor posted its highest-ever quarterly sales with profit rising 51% to ₹1,174 crore. Realty, Chemicals, and Cement also closed in the green, while PSU Banks, IT, and Oil & Gas ended lower. The broader market outperformed the benchmark, with the Nifty Midcap 100 gaining 0.30% and the Nifty Smallcap 100 advancing 0.53%, with 275 of the Nifty 500 stocks closing in the green and the BSE advance-decline ratio at 1.08.
The Indian rupee recovered 21 paise to close at 96.23 against the dollar, aided by encouraging FCNR flow data from the RBI and steady capital inflows, as reported by The Hindu BusinessLine. This represents a significant improvement from the previous session's close of 96.44. However, elevated crude prices continued to exert broader pressure, with WTI crude trading near $83 a barrel. NSE cash market turnover also fell 6% from the previous trading session, reflecting reduced market participation during the volatile session.
On the macro front, the IMF trimmed India's FY27 GDP growth forecast by 10 basis points to 6.4%, citing elevated crude prices and El Niño risks, while raising the FY28 estimate to 6.7%, according to The Hindu BusinessLine. India's core infrastructure output, however, accelerated to a five-month high of 5% YoY in June. In corporate developments, SBI Funds Management made its market debut, listing at roughly a 7% premium after its IPO was oversubscribed over 40 times. Three mainboard IPOs - Lohia Corp, Indo-MIM, and Xtranet Technologies - with a combined issue size of approximately ₹5,079 crore are set to open for subscription this week.
Markets are expected to remain range-bound and stock-specific, with key earnings on Wednesday including Adani Power, Nestlé India, SRF, and Eternal, along with the European Central Bank's policy decision and any diplomatic developments on the US-Iran front being closely watched for directional cues, as reported by The Hindu BusinessLine. The primary market will also remain in focus this week, with three mainboard IPOs scheduled to open for subscription. Companies due to report June quarter earnings on Tuesday include Bajaj Auto, Cyient DLM, Mahindra & Mahindra Financial Services, TVS Motor Company and Indian Hotels Company.
