Indian equity benchmarks opened higher on Tuesday, buoyed by strong quarterly earnings from private banks and positive global cues. Despite giving up some early gains, the Nifty 50 continued to trade in the green, hovering near the 25,150 level. The Sensex also rose, up about 150 points in early trading.
Key Highlights
- Nifty opens above 25,100 and Sensex gains ~150 points on private banks’ robust Q1 earnings.
- Financials and Eternal shares lead rally, while Reliance drags; upbeat trade‑deal progress supports sentiment.
The small-cap and mid-cap indices increased by 0.4% and 0.3%, respectively, reflecting the strong performance of the broader markets. Among the thirteen sectoral indices of the NSE, eleven were up, with consumer, auto, and banking stocks leading the way. With gains of 56–100 points, GIFT Nifty futures were off to a good start.
This positive momentum was fueled by strong earnings, strong global cues, and earnings-heavy days ahead. Banking stocks rose as a result of HDFC Bank and ICICI Bank's strong Q1 results, giving the markets vital support.
Following a successful Wall Street close, Asian markets opened largely higher. Ahead of the August 1 deadline, investors were also hopeful about the status of the trade negotiations between the US and India.
The market is currently concentrating on additional corporate earnings that are due this week, such as those from United Breweries and Colgate-Palmolive India.
In the previous trading session, domestic institutional investors (DIIs) bought ₹3,600 crore worth of stocks, while foreign institutional investors (FIIs) sold about ₹1,700 crore.
Today's Stock in Focus
Zomato's parent company, Eternal Ltd., saw a 10% increase in early trading, peaking at ₹298.30. The company reported a 70% year-over-year increase in Q1 revenue to ₹7,167 crore, which caused the stock to rise. However, as a result of more investments in the Blinkit business, net profit dropped to ₹25 crore. Notably, Blinkit's net order value for the first time exceeded Zomato's main food delivery business, suggesting a change in the dynamics of the market.
The sectoral gains led by financial stocks are also up about 0.5 percent. But as Reliance Industries' performance was muted, pressure on oil and gas stocks persisted.
Also Read: Reliance Industries Divests 0.9% Stake for Rs 1,876 Cr in Asian Paints
Outlook
The general mood is still cautiously optimistic, supported by global cues and earnings growth. The markets will keep an eye on FII/DII flows, Q1 earnings, and macroeconomic events, such as trade talks with the US.
Investors are advised by analysts to keep a close eye on sectoral trends, earnings announcements, and any updates on global trade and geopolitical events.
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