Closing Bell: Market Ends At Record Levle For 3rd Straight Day; Sensex & Nifty Gain; ICICI Bank Leads

The Indian stock market continued to rise for the third consecutive session, as the equity benchmark indices BSE Sensex and NSE Nifty ended Tuesday with minor gains but still hit record highs despite significant volatility. The Nifty closed above 24,600 for the first time, adding 26 points to end at 24,613, while the Sensex rose 52 points, finishing at 80,717.

The domestic stock market's rally in July has been driven by a combination of factors including optimism around a growth-oriented Union Budget, expectations of healthy Q1 earnings from Indian corporates, and the steady progress of the monsoon. However, the upward momentum has been tempered by concerns over high market valuations. Despite the Nifty 50 closing in the green for eight out of the 12 sessions in July, its rise has been a modest 2.5% for the month.

Experts caution that while most variables have already been priced into the market, a decisive move is likely only after the Union Budget is presented on July 23. This has led to selective buying in heavyweight stocks and profit booking in others, creating a mixed but cautiously optimistic market sentiment.

The gains on Tuesday were supported by strong performances from ICICI Bank, Bharti Airtel, and Hindustan Unilever. Conversely, Reliance Industries Ltd and Kotak Mahindra Bank were notable drags on the Nifty, together pulling it down by 43 points. The Sensex also saw contributions from Hindustan Unilever, Bharti Airtel, Infosys, Tech Mahindra, Mahindra & Mahindra, and ICICI Bank, while Kotak Mahindra Bank, UltraTech Cement, NTPC, Reliance Industries, Larsen & Toubro, and Axis Bank were the biggest laggards.

The Nifty Bank Index slipped 59 points to 52,397, reflecting the mixed performance within the banking sector. The Midcap Index remained unchanged at 57,664, indicating a balanced sentiment among midcap stocks. Coal India emerged as the top Nifty gainer, rising 3% following a positive brokerage note, while Bajaj Auto ended in the green after reporting a strong set of Q1 earnings.

Telecom stocks saw positive movement on hopes of Adjusted Gross Revenue (AGR) relief, with gains of up to 2%. This was led by Bharti Hexacom, which surged over 7% after JPMorgan initiated coverage with an Overweight rating.

Paytm fell 2% following an administrative warning from SEBI regarding related party transactions. Hatsun Agro and SpiceJet both saw gains of up to 4% each, buoyed by positive quarterly earnings reports.

IREDA slipped 6% after PhillipCapital set a target price 60% below the current market price. Zomato experienced profit booking, closing down by more than 4%.

Alembic Pharma continued to attract buyers ahead of its quarterly earnings, rising 12%. Jyoti Structures hit a record high after winning a Rs 118 crore order from Adani Energy.

Cipla ended in the red after receiving a Rs 770 crore tax order from the Income Tax Department. DB Corp fell up to 7% following its quarterly results. Himadri Chem and Century Textiles jumped up to 4% each on healthy Q1 earnings.

The BSE benchmark climbed 145.52 points or 0.18% to settle at a new record high of 80,664.86 on Monday, while the NSE Nifty rallied 84.55 points or 0.35% to settle at an all-time closing high of 24,586.70. These record-breaking highs come as the market looks forward to the Union Budget, which is expected to set the tone for future market movements. Investors and market watchers are anticipating the policy announcements and fiscal measures that will be outlined in the Budget, which are expected to provide fresh triggers for market direction.

In the meantime, the market is likely to continue experiencing volatility as investors explore the interplay between global economic signals, domestic fiscal policy expectations, and company-specific developments. The upcoming weeks promise to be a period of significant interest and activity in the Indian stock market.