Sensex crosses 83,700, Nifty holds above 25,550 as strong manufacturing data and global cues lift investor sentiment
The Indian stock market opens the month of July on a steady and slightly positive note. The Sensex crosses the 83,700 mark in morning trading, while the Nifty 50 stays just above 25,550. These early gains show that investors are cautiously optimistic as they look at both local and global developments.
The Sensex rises by about 0.17%, and the Nifty gains around 0.13% during the early session. However, the financial sector shows some weakness. Public sector banks fall by around 0.75%, and the overall financial index drops by about 0.3%. Meanwhile, mid-cap and small-cap stocks see slight declines as traders book profits and shift their focus toward safer blue-chip stocks.
Nifty Moves in a Tight Range
On the technical side, experts say the Nifty is trading in a narrow band between 25,500 and 25,600. If the index falls below 25,500, it may signal the start of a correction. But if it goes above 25,800, it could move toward new highs. Investors are closely watching these levels to decide their next move.
The Bank Nifty index is also being watched carefully. It remains above key support levels at 57,000 and 56,800. As long as the index stays above this range, the outlook remains slightly positive. Analysts also notice rising foreign investments and increased activity in the Bank Nifty futures market. This indicates that large institutional investors are showing interest, which may support the market in the near term.
July Historically Brings Gains
Market history supports the idea of a good July. Over the past ten years, the Nifty has posted gains in nine Julys, with an average return of 3.6%. The index has recently broken out of a one-month sideways phase, giving traders more confidence in a continued rally.
Experts believe that the Nifty and Sensex could perform well this month. Contributing to this outlook are strong economic numbers, stable inflation, continued buying by domestic investors, and the solid performance of large companies like Reliance Industries. The second half of the year is also expected to be strong for mid-cap stocks, especially if earnings continue to beat expectations.
Key Stocks Leading the Market Today
The healthcare and pharmaceutical sectors perform well today. Apollo Hospitals jumps over 4% after announcing a plan to separate its digital health, pharmacy, and telehealth units into independent businesses. This type of restructuring often helps unlock more value for shareholders.
Other major gainers in today’s session include Asian Paints, Bharat Electronics, Bharti Airtel, Tata Motors, SBI Life, and IndusInd Bank. These stocks rise between 2% and 4%, boosted by positive news and strong investor demand. Tata Motors, in particular, sees buying interest due to its progress in the electric vehicle market and plans for rare earth magnet manufacturing.
Meanwhile, construction and capital goods companies like NCC and Kalpataru benefit from fresh project wins. NCC secures a contract worth ₹1,691 crore, while Kalpataru bags one worth ₹989 crore. These large orders lead to gains in the infrastructure sector.
However, mid-cap and small-cap stocks are under pressure. The broader indices for these segments fall by about 0.4%, suggesting that some traders are taking profits after recent gains in these categories.
IPO Market Remains Active
The IPO market continues to buzz with activity. Ten initial public offerings are scheduled for the first week of July. These include two big board listings and eight SME (small and medium enterprises) listings. The interest in IPOs shows that investors are still willing to take risks for potential gains.
Among the key listings this week are companies like Crizac and Travel Food Services. Several recent IPOs, including companies in the real estate, industrial gas, civil construction, and jewelry sectors, make their stock market debut today. At the same time, a well-known auto component firm, Hero Motors, is preparing to raise up to ₹1,200 crore through its own upcoming IPO. This shows the growing confidence in India’s manufacturing and auto sectors.
Global Developments Support Local Market
Global developments are also helping the Indian market maintain a stable mood. Trade talks between India and the United States are progressing, with a key deadline set for July 9. If these talks go well, they could reduce trade tensions and improve investor sentiment.
Meanwhile, other global markets, including the U.S., are hitting new highs. Strong performance in American markets often leads to positive movement in Indian stocks, especially in sectors like technology and exports.
In addition, Canada’s recent decision to cancel its digital services tax on American tech firms creates a more favorable global environment for technology companies. Such global improvements often lead to increased confidence in emerging markets like India.
Strong Manufacturing Data Boosts Confidence
New economic data from India’s manufacturing sector adds to the positive sentiment. The manufacturing activity index reaches a 14-month high, showing that factories are producing more goods and industries are expanding. This is a strong signal that India’s economic recovery is on track.
The manufacturing sector has been supported by higher demand, strong exports, and better supply chain management. As a result, the outlook for industrial growth remains healthy, helping support stock prices in sectors such as engineering, auto parts, and capital goods.
At the same time, the India VIX, a key measure of market volatility, stays below 15. This means that investors do not expect sharp ups and downs in the near term, which is a good sign for market stability.
Valuation and Future Outlook
Despite today’s steady gains, analysts are starting to talk about market valuations. The current price-to-earnings ratio for the Nifty is around 23.5, which is slightly higher than the long-term average. This raises concerns about whether stocks are becoming too expensive.
Even though the long-term trend remains positive, experts warn that there could be small corrections in the short term. These corrections may be caused by poor corporate earnings, global market weakness, or any unexpected economic event.
Still, most analysts remain hopeful. A survey of market experts suggests that the Nifty could reach 26,500 by the end of this year. The Sensex might touch 95,000 by the end of 2026, supported by growth in financial services, technology, consumer demand, and renewable energy.
Earnings Season Is the Next Big Trigger
Investors are now turning their attention to the upcoming earnings season, which starts soon. The financial results of top companies will play a big role in determining the next direction of the market.
Sectors such as banking, telecom, IT, and metal industries will be closely watched. Good results in these sectors could push the indices higher, while any negative surprises might lead to short-term selling.
The Indian stock market begins the new month with cautious optimism. The Sensex and Nifty show slight gains, supported by strong manufacturing data, healthy global signals, and continued interest in major stocks. While the market faces some short-term risks due to high valuations and profit booking, the overall outlook remains positive.
With the earnings season approaching and IPO activity picking up, investors and traders remain engaged. As long as economic growth stays strong and global risks are kept in check, the Indian stock market is likely to maintain its upward path through July and beyond.
