Sensex Gains 119 Points at Open, Nifty Crosses 25,100; Tata Motors Rises 1%

On Tuesday, benchmark Indian stock market indices opened on a positive note, breaking the recent downward trend, largely driven by gains in auto and energy sector stocks. The S&P BSE Sensex rose by 176.33 points, reaching 82,429.79, while the NSE Nifty50 climbed 63.50 points to 25,145.80 as of 9:29 am. This early rally indicated a reversal in sentiment as investors found confidence in select sectoral performances.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented on the current market condition, stating that it was in a "state of drift" without strong indicators pointing to a significant change in direction. He noted that foreign institutional investors (FIIs), who had been net buyers in the months of April, May, and June, turned into net sellers in July. This shift has exerted pressure on large-cap stocks. However, the broader market remains relatively stable due to a lack of institutional selling, despite high valuations.

Among individual gainers, Bharat Electronics Limited (BEL) rose by 0.87%, Bharti Airtel increased by 0.70%, Kotak Mahindra Bank saw a 0.59% rise, Sun Pharma went up 0.56%, and Tata Motors gained 0.44%. These gains signaled renewed investor interest in select blue-chip stocks, particularly in the auto and pharma sectors.

On the other hand, some prominent companies experienced losses. HCLTech declined sharply by 2.83%, Eternal dropped by 0.77%, Power Grid Corporation fell 0.07%, Axis Bank dipped 0.11%, and Tata Steel slipped by 0.47%. These losses tempered overall market enthusiasm and showed that not all sectors shared the positive momentum.

In broader indices, the Nifty Midcap100 rose by 0.51% and the Nifty Smallcap100 increased by 0.76%, reflecting investor interest in mid- and small-cap stocks. However, the India VIX, a measure of market volatility, declined by 0.77%, indicating a slightly more stable market environment.

Sectorally, several indices posted gains, with Nifty Media leading the way at 0.97%. This was followed by Nifty Oil & Gas at 0.73%, Nifty Auto at 0.72%, and Nifty Consumer Durables at 0.55%. Other notable gainers included Nifty Realty (0.47%), Nifty Pharma (0.41%), Nifty Healthcare (0.38%), Nifty FMCG and PSU Bank (both at 0.21%), Nifty Private Bank (0.19%), Financial Services (0.17%), Metal (0.11%), and IT (0.06%). These figures highlighted the broad-based nature of the day’s rally.

Vijayakumar further noted that, along with cash market selling, FIIs were increasing short positions in the derivatives market. He suggested that any short covering could lead to a sharp market recovery, though no clear catalyst for such a rebound was visible at the moment.

On the macroeconomic front, a key development was the drop in Consumer Price Index (CPI) inflation in June to 2.10%, which is significantly below the Reserve Bank of India’s (RBI) projection of 3.7% for FY26. This decline in inflation has raised investor expectations of an interest rate cut, which could provide further support to the markets in the near future.

In conclusion, Tuesday’s market performance marked a break from recent losses, supported by gains in key sectors, moderating inflation, and potential rate cut hopes. However, uncertainties remain due to FII behavior and the absence of strong triggers for a sustained uptrend.