During the week, the NSE Nifty 50 rose 127.4 points or 0.5 per cent, while the BSE Sensex rose 582.06 points or 0.8 per cent.
On Friday, the last trading day of the week, strong buying was seen in the market, where Nifty rose by 261.55 points or 1.09 percent to close at 24,334.30 and Sensex jumped by 964.58 points or 1.25 percent to close at 78,151.45.
During the week, investors kept an eye on the geopolitical situation in West Asia. The US Central Command informed that it carried out precise attacks on several Iranian targets on July 12. The aim of these attacks was to weaken Iran’s ability to attack international ships passing through the Strait of Hormuz. Due to this development, there was an atmosphere of caution in the global markets.
However, amid global uncertainties, the Indian market got a boost from strong quarterly results of companies and policy announcements from the government. This week many big companies like HCL Technologies, Tech Mahindra, Wipro, Reliance Industries and Jio Financial Services released their first quarter results.
Additionally, on July 15, the Union Cabinet approved two mega manufacturing schemes worth around Rs 1.9 lakh crore ($22 billion), further boosting investor confidence.
India VIX recorded an increase of 7.3 percent this week. This is considered a sign of increasing volatility in the market. Investors adopted a cautious stance due to geopolitical tensions and global uncertainties.
While the major indices performed positively, the broader market remained relatively weak. Both the Nifty Midcap 100 and Nifty Smallcap 100 indices closed down around 1 per cent during the week.
Talking about sectoral performance, Nifty IT was the biggest winner this week and registered a gain of 4.3 percent. After this, Nifty Consumer Durables strengthened by 3.1 percent and Nifty Media strengthened by 2.5 percent. Nifty Private Bank rose 1.5 percent and Nifty Oil & Gas rose 1.1 percent, which was supported by rising crude oil prices.
On the other hand, Nifty Realty was the weakest sector and declined by 2.1 percent. Besides, Nifty Metal slipped 2 per cent, Nifty India Defense 1.5 per cent, Nifty FMCG 1.1 per cent and Nifty PSU Bank 0.8 per cent.
Due to increasing tension in the Middle East, the prices of Brent crude increased by about 15.91 percent in a week and reached $ 88.10 per barrel. However, in the last trading session, Brent crude was seen trading around $ 85.03 per barrel and US WTI crude was seen trading around $ 79.07 per barrel. Oil prices fell about 1 percent in overnight trading, but were still near their highest levels since mid-June.
Experts believe that the market direction in the coming days will mainly depend on the quarterly results of the companies, future management guidance, progress of monsoon, crude oil prices and geopolitical developments in West Asia. If global tensions ease and corporate results remain strong, the bullish trend in the Indian stock market may continue further.
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