Indian benchmark equity indices began July on a positive note and ended a two-session losing run as heavyweight stocks, financials and auto stocks offered some relief to bulls. The BSE Sensex jumped 444 points to close at 76,923 while NSE Nifty 50 rose 140 points to 24,006, which is a significant level. The market rally was driven by lower crude oil prices, positive cues in the world and strength in the banks.

Key Highlights

• Sensex climbed 444 points while Nifty reclaimed 24,000, led by banking, auto and heavyweight stocks.
• KPIT Technologies plunged 17%, whereas RITES jumped 13% after securing a Rs 175 crore consultancy order.

The financial stocks led the rally with the Nifty Bank index rising by almost 490 points. The major banks such as Kotak Mahindra Bank, State Bank of India and the IndusInd Bank were the big winners, as the sector regained investor confidence. There was also a strong buy interest in the market as heavyweight Reliance Industries supported the bull movement in the market.

Auto Stocks Gain on Robust June Sales

The automobile sector remained in focus after companies reported encouraging June sales figures. Mahindra & Mahindra, Maruti Suzuki and Ashok Leyland posted decent gains as investors were encouraged by the healthy dispatch numbers in the month and the prospects of demand. The larger car index was better during the day, further supporting optimism about the prospects of the auto industry.

Also Read: Stock Market Opens Higher; Sensex Gains 200 Points, Nifty Nears 24,000

IT Stocks Continue to Weigh on Market

The information technology industry continued to languish on the downside despite the overall sell-off, extending its fourth straight trading session of losses. KPIT Technologies tumbled almost 16 percent after it lowered its business outlook and a few days after global brokerage JPMorgan downgraded the stock. Investor mood in technology stocks was guarded as the severe drop weighed on the Nifty IT index.

The individual stocks that were significant in the day saw one of the best performers in the category, RITES, which rose 13% following a consultancy contract worth Rs 175 crore, which added to investor confidence in public sector engineering company RITES.

The pick-up in the month of July is the result of a better general outlook on the market, driven by a decline in crude oil prices, favorable global news and gains in the banking and car industries, which more than compensated for ongoing losses in the IT sector. Investors will be watching closely for corporate earnings, macroeconomic data and world events for additional stock market direction.