Where is the market headed?
The markets looked much better today, supported by encouraging cues from the US. On Friday, the US jobs data triggered a significant shift in expectations for interest rate cuts. Until recently, the chances of a rate cut this year were slim, but now there’s an 80% probability of one in September and possibly another in December.
This change in outlook has eased concerns about the dollar strengthening too much. As a result, we might see more flows into emerging markets and risk assets. While nothing is certain in these dynamic conditions, this data point has shifted short-term sentiment. With US interest rates likely to fall, funds may be less inclined to move into the US dollar.
Market Overview
Nifty closed at 24,722, up 0.64%, holding within the recent five-day range.
Nifty Next 50
Nifty Jr rose 1.09%.
Nifty Mid and Small Cap
Midcaps gained 1%, and Small caps climbed 0.98%.
Bank Nifty
The only laggard was Bank Nifty, which ended flat, possibly due to underwhelming recent bank results.
GOLD
Gold also moved higher, crossing ₹10,000 per gram in rupee terms, as investors sought precious metals alongside emerging markets.
Advance Decline Ratio
Market breadth was positive, with advances gaining after the first couple of hours and staying strong till the close.
Heat Maps
HDFC Bank and ICICI Bank ended in the red, but most Nifty constituents were green. Reliance, Bharti Airtel, TCS, Infosys, Tech Mahindra, SBI Life, Adani Ports, Tata Steel, and JSW Steel all saw good gains. Nifty Next 50 also looked solidly positive, barring ABB, which fell 5% on weak results. Other strong movers included HAL, Pidilite, TVS Motors, Chola, Bank of Baroda, Divi’s Lab, and Adani Power.
Movers Of The Day
Among standout performers, JSW Energy jumped 5% as it targets 30 GW capacity by 2030, boasting 70% year-on-year growth. ABB India slipped 5.4%, returning to March levels after a weak Q1.
Sectoral Overview
Sectorally, Capital Markets surged 2.6%, DefenCe 2.5%, and Metals also performed well. Real Estate, Autos, IT, Media, Commodities, and Manufacturing posted 1.5% gains, while FMCG and Financial Services were flat.
Sector of the Day
Nifty Capital Market Index
In the capital markets space, CDSL, MCX, CAMS, Aditya Birla, and BSE moved up, aided by optimism around the NSDL IPO and a possible NSE IPO. There is talk of SEBI tightening rules on options trading, which could hurt brokers and exchanges, but it didn’t stop the rally today.
Nifty India Defence Index
Defense stocks like Data Patterns, DCX, Solar Industries, BEML, and Bharat Electronics also rebounded after recent heavy losses.
