Indian equity markets witnessed significant profit booking on July 9, with Sensex closing 238.22 points or 0.31% higher at 76,741.82 and Nifty ending 80.75 points or 0.34% higher at 23,962.80. According to Moneycontrol, the markets declined nearly 600 points from their day's high due to various factors including profit booking after rising nearly 1% during the session. Market breadth remained positive with 2,793 shares advancing, 1,263 declining, and 167 unchanged, while broader market indices closed sharply higher with 1.4-1.8% gains. However, Nifty IT and Nifty Auto ended 0.3% lower each, with Dr. Reddy's Laboratories being the worst performer, ending around 6% lower and declining for the fourth straight session with over 8% decline during this period.
According to reports from Mint, Bandhan AMC CIO – Equity Manish Gunwani believes India has successfully navigated multiple challenges over the past two years, including geopolitical tensions, tariff concerns and a slowing economy. Gunwani is now bullish on private banks, NBFCs, insurance, real estate and consumer discretionary sectors, citing improving domestic demand, healthy credit growth and resilient retail asset quality as key drivers. The real estate sector particularly stood out with Nifty Realty index closing 3.5% higher, led by Lodha Developers, Brigade Enterprises, and Anant Raj Ltd. closing with 5-7% gains. As per Moneycontrol, analysts noted that with Mumbai receiving significant rainfall, construction activity in the city could resume without any hindrance, supporting the sector's strong performance.
As reported by Mint, Gunwani expresses caution regarding the AI-driven rally, suggesting it may be showing signs of fatigue after sharp gains in semiconductor and AI-related stocks. He remains particularly cautious on IT services, stating that the long-term impact of AI is still difficult to assess and investors should avoid taking aggressive positions until there is greater clarity. This cautious stance reflects broader market concerns about the sustainability of AI-related investments, with the latest market volatility adding to investor uncertainty about technology sector performance.
Oil prices fluctuated significantly as traders assessed the outlook for Middle Eastern crude supplies after fresh hostilities between the US and Iran. According to Moneycontrol, Brent traded below $78 a barrel, after gaining more than 5% on Wednesday, while West Texas Intermediate was near $73. The swing came even after US forces conducted a second day of strikes against the Islamic Republic, and Iran's state media reported attacks on American bases in the region. The global energy market has been jolted this week by the resurgence in fighting in the Middle East, with the status of Hormuz — which connects Persian Gulf producers to global markets — lying at the center of the tensions.
Looking ahead, market analysts have provided key technical levels for Nifty's future direction. As reported by Moneycontrol, Anand James, Chief Market Strategist, Geojit Investments Limited, said Nifty has to cross 23,150 decisively for further upmove, while Shrikant Chouhan, Head Equity Research, Kotak Securities, noted that inability to sustain above 23,936 could confirm the next leg of downsides aiming 23,641 initially. On the downside, the Nifty is likely to retest its 50-day Simple Moving Average (SMA), placed near 23,800/76,000, with a sustained move below this level potentially extending the correction towards 23,600/75,800. This technical analysis comes as Gunwani expects Indian corporate earnings to improve but warns investors to closely monitor global bond yields and the trajectory of AI spending, which could shape market direction over the coming years.
