Sensex, Nifty Climb on IT, Auto Gains; Realty, Energy Stocks Fall

On July 1, the benchmark indices Nifty and Sensex experienced gains and were trading in the green, despite an increase in selling pressure. The energy and realty sectors were significant laggards, whereas the auto sector saw the most notable rise. 

Around 9:30 am IST, the Sensex had risen by 0.14% to reach 79,145.95, while the Nifty was up by 0.15%, trading at 24,047. Approximately 2,054 shares advanced, 971 shares declined, and 118 shares remained unchanged.

"This is a significant battle between the bulls and the bears, with the bulls largely maintaining control despite the profit booking we are observing," remarked Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, in an interview with Moneycontrol. He further noted that the market is expected to consolidate within the 2,400 range this week and exhibit a positive bias.

Among the 13 sectoral indices, the bank, energy, and infra sectors were trading lower, with energy experiencing the most significant decline. Major stocks such as NTPC, Power Grid Corp, and Adani Green were the primary laggards. Conversely, the auto and metal indices emerged as the top performers, according to the data. 

The auto sector drew attention today, trading nearly one% higher, buoyed by June sales data. Analysts predict that retail sales will generally stay subdued, with a few notable outperformers. This subdued performance is attributed to heatwaves, which have decreased foot traffic and inquiries across various categories. Overall performance is anticipated to be mixed, with growth propelled by two-wheelers and passenger vehicles, while commercial vehicle sales are expected to remain flat. Tractor sales are projected to decline for the month. However, Nuvama forecasts that volumes for two-wheelers and tractors could grow in high single digits.

The broader market, encompassing midcaps and small-caps, outperformed the main indices, rising by 0.2 and 0.7%, respectively. Meanwhile, the fear gauge, India VIX, increased by 2%, reaching approximately 14.05 on July 1.

"If the index closes above the 24,200 level, it could potentially rise to 24,400 and 24,500. Conversely, if the index closes below the 23,800 level, it could see a correction down to 23,600 and 23,400, which would act as buy-on-dips levels," Sumeet Bagadia, executive director at Choice Broking said.

Hero MotoCorp, Bharti Airtel, Maruti Suzuki, JSW Steel, and Bajaj Auto emerged as the top gainers on the Nifty. On the other hand, NTPC, Power Grid Corp, Apollo Hospital, HDFC Life Insurance, and Kotak Mahindra Bank were the notable laggards.