Why Did the Indian Stock Market Surge by 446 Points?
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Synopsis
On July 29, the Indian stock market experienced a significant turnaround, with the Sensex surging by 446 points amid widespread buying, despite subdued quarterly earnings. This recovery signals a potential shift in investor sentiment as key global economic events loom on the horizon.
Key Takeaways
- Sensex rose by 446 points, closing at 81,337.95.
- Nifty increased by 140.20 points, settling at 24,821.10.
- Buying momentum came despite subdued Q1 earnings.
- Almost all sectors ended in positive territory.
- The rupee weakened against the dollar, trading at 86.80.
Mumbai, July 29 (NationPress) The Indian stock market closed positively on Tuesday, reversing a streak of selling pressure thanks to robust buying amid disappointing Q1 earnings.
The Sensex ended at 81,337.95, marking an increase of 446.93 points or 0.55 percent. The 30-share index opened the day lower at 80,620.25, compared to the previous session's closing of 80,891.02. However, the index rallied due to strong buying in heavyweight stocks, reaching an intraday high of 81,429.88.
Nifty concluded at 24,821.10, up by 140.20 points or 0.57 percent.
Analysts noted that despite ongoing uncertainties regarding US–India trade negotiations, the domestic equity market staged a slight recovery from the day’s lows. Almost every sector ended positively, with metal, pharma, and realty leading the charge, while IT, financials, and FMCG lagged due to weaker quarterly results.
Investor sentiment appears cautious ahead of significant global events, including key policy decisions from the US Federal Reserve and the approaching August 1 reciprocal tariff deadline.
Stocks such as L&T, Adani Ports, Asian Paint, Tata Steel, Tata Motors, Maruti Suzuki, Bharati Airtel, HDFC Bank, Bajaj Finance, and HCL Tech all ended positively, while TCS, Axis Bank, and Titan were among the significant losers.
The broader market also experienced momentum, with Nifty Next 50 climbing 610 points or 0.91 percent, Nifty 100 increasing by 158 points, Nifty Midcap 100 soaring by 465 points or 0.81 percent, and Nifty Small Cap 100 settling 186.70 points or over 1 percent higher.
Most sectoral indices ended the session in the green. Nifty Bank rose by 137 points, Nifty Fin Services gained over 85 points, and Nifty Auto surged by 195 points.
The rupee traded weaker, falling by 0.14 to 86.80 against the dollar, down 0.16 percent, as the dollar index approached the 99 mark, overshadowing gains in domestic capital markets.
"As the August 1 US trade deal deadline approaches, alongside critical US data releases like ADP Non-Farm Employment, Non-Farm Payrolls, Unemployment Rate, GDP, and the Federal Reserve's policy statement, the forex market is expected to remain volatile. The rupee is likely to trade within a range of 86.45–87.25," commented Jateen Trivedi of LKP Securities.
Point of View
It is evident that despite challenges such as subdued quarterly earnings and ongoing trade negotiations with the US, investor confidence is showing signs of resilience. This upward trend indicates a potential recovery phase in the market, aligning with our commitment to keep a close watch on economic indicators that affect national interests.
NationPress
31/07/2025
Frequently Asked Questions
What caused the surge in the Indian stock market?
The surge was primarily driven by strong buying in heavyweight stocks amid a recovery from previous selling pressure, despite subdued quarterly earnings.
How did the Sensex and Nifty perform?
The Sensex closed at 81,337.95, up 446.93 points or 0.55 percent, while the Nifty settled at 24,821.10, rising by 140.20 points or 0.57 percent.
Which sectors led the gains?
The metal, pharma, and realty sectors led the gains, while IT, financials, and FMCG lagged behind due to weaker quarterly results.
