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On August 1, the benchmark indices Nifty and Sensex closed the trading session on a positive note, driven by significant gains in energy stocks. The Nifty Index crossed the key psychological level of 25,000, marking a notable achievement after a period of consolidation. At the close of trading, the Sensex was up by 0.15 per cent, settling at 81,867, while the Nifty gained 0.24 per cent to finish at 25,010.
In terms of market breadth, 1,237 shares advanced, 2,181 shares declined, and 78 shares remained unchanged. The India VIX, which measures market volatility, saw a decline of over 2 per cent, closing around the 12.9 level, reflecting a more stable market sentiment.
Despite the positive performance of the benchmark indices, broader market indices, including mid-cap and small-cap stocks, experienced a decline of nearly one per cent each. These indices had been performing exceptionally well since the beginning of the year, with both rising by 26 per cent and surpassing the Nifty’s gains.
The Nifty Energy Index emerged as the standout performer, surging by 2 per cent. This rally was supported by strong performances from major energy companies such as Power Grid Corp, Coal India, NTPC, and Adani Energy Solutions. In contrast, the Realty Index dropped by 2 per cent, driven by significant declines in the share prices of DLF and Godrej Properties. The Auto sector also faced losses, led by declines in Mahindra and Mahindra and Hero MotoCorp.
The day’s positive start was influenced by global market cues, particularly after indications from the Federal Reserve Chair regarding a potential rate cut in September due to easing inflation. However, broader market sentiment turned negative by the end of the session, impacted by escalating geopolitical tensions in the Middle East and rising crude oil prices. Additionally, sectors such as capital goods and realty experienced profit-taking, while auto stocks were affected by disappointing monthly sales figures.
Top gainers on the Nifty included Coal India, Power Grid Corp, Shriram Finance, Dr Reddy’s Labs, and ONGC.