Stock Market Update: Sensex and Nifty 50 End Flat Due to HDFC Bank Losses; Mid and Small Caps Outperform

Historical Context: The Indian stock market, represented by indices such as the Sensex and Nifty 50, has been a barometer of the country’s economic health since their inception. The Sensex, introduced in 1986, and the Nifty 50, launched in 1996, track the performance of the top companies listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), respectively. These indices have witnessed various economic cycles, policy changes, and global financial events, making them crucial for investors and policymakers alike.

Market Performance on July 5: On July 5, the Indian stock market experienced mixed results. The Sensex and Nifty 50 indices ended flat, primarily due to significant losses in HDFC Bank shares. Despite this, midcap and smallcap segments outperformed, continuing their record-setting trend.

Global Influences: Positive global cues influenced the market, with major European markets rising ahead of the US non-farm payrolls report. Optimism about potential Federal Reserve rate cuts also buoyed global markets.

HDFC Bank’s Impact: HDFC Bank shares fell by 4.50%, significantly impacting the key indices. The decline followed the bank’s June-quarter business updates, which showed a sequential fall in advances and deposits. Additionally, the bank’s weight on the MSCI India Index is set to double as its foreign shareholding dropped below 55% at the end of June.

Market Indices Performance:

• Sensex: Fell by 53 points (0.07%) to settle at 79,996.60.
• Nifty 50: Rose by 22 points (0.09%) to end at 24,323.85.
• BSE Midcap Index: Hit a fresh all-time high of 47,484.71, closing 0.75% higher at 47,437.85.
• BSE Smallcap Index: Reached a new record high of 54,258.65, ending 0.70% higher at 54,153.96.

Weekly Performance:

• Nifty 50: Extended gains for the fifth consecutive week, rising 1.3%.
• Sensex: Increased by 1.2%.
• BSE Midcap and Smallcap Indices: Jumped by 3% and 4%, respectively.

Top Gainers and Losers:

• Top Nifty 50 Gainers: ONGC (up 4.06%), Reliance Industries (up 2.63%), SBI (up 2.42%).
• Top Nifty 50 Losers: HDFC Bank (down 4.50%), Titan Company (down 1.90%), LTIMindtree (down 0.85%).

Sectoral Indices:

• Nifty Bank Index: Fell by 0.83%.
• Nifty Private Bank Index: Dropped by 0.97%.
• Nifty PSU Bank Index: Gained 1.25%.
• Nifty Oil & Gas, Pharma, Healthcare, and FMCG Indices: Ended with gains of 1.89%, 1.29%, 1.27%, and 1.08%, respectively.

Expert Opinions:

• Prashanth Tapse (Mehta Equities): Markets traded cautiously ahead of the US non-farm payroll data, with investors awaiting the Union Budget and future growth strategies.
• Vinod Nair (Geojit Financial Services): The domestic market showed mixed performance, with the banking sector lagging due to a decline in deposit growth among top lending banks.

Technical Analysis:

• Amol Athawale (Kotak Securities): The Nifty 50 formed a bullish candle on weekly charts and maintained a higher high and higher low series on intraday charts. Key support zones are at 24,100/79,300 and 24,000/79,000, while resistance levels are at 24,400-24,500/80,400-80,700.

Summary:

• Sensex and Nifty 50 ended flat due to HDFC Bank losses.
• Midcap and smallcap segments outperformed.
• Positive global cues influenced the market.
• HDFC Bank’s June-quarter updates impacted its stock.
• Weekly gains continued for major indices.
• Sectoral performance varied, with gains in PSU banks, oil & gas, pharma, healthcare, and FMCG.
• Experts highlighted cautious trading ahead of key economic data and events.
• Technical analysis indicated a positive market texture with potential rangebound activity.

Disclaimer: The views and recommendations are those of individual analysts and experts. Investors should consult certified experts before making investment decisions.