Sensex, Nifty end week higher despite geopolitical tensions
New Delhi, July 18
The domestic equity market closed the week with modest gains, supported by upbeat corporate earnings and policy measures, even as investors remained cautious amid escalating geopolitical tensions in the Middle East and a sharp rally in crude oil prices.
For the week, the Nifty advanced 127.4 points, or 0.5 per cent, while the Sensex gained 582.06 points, or 0.8 per cent, reversing the losses seen in the previous week.
Investor sentiment remained guarded after the US Central Command (CENTCOM) said it had carried out a fresh wave of offensive strikes against Iran on July 12, targeting multiple locations to degrade Tehran's ability to attack international shipping passing through the Strait of Hormuz.
The geopolitical tensions triggered a sharp rally in crude oil prices, with Brent crude climbing 15.91 per cent during the week to settle at $88.10 per barrel.
Despite the uncertainty, market sentiment received support from a strong start to the first-quarter earnings season and the Union Cabinet's approval of two major manufacturing initiatives with a combined outlay of nearly Rs 1.9 lakh crore.
Several blue-chip companies announced their June quarter results during the week, including HCL Technologies, Tech Mahindra, Wipro, Reliance Industries and Jio Financial Services.
Technology stocks remained in focus after TCS shares rallied following its quarterly earnings, while Tech Mahindra gained after reporting an 8.2 per cent sequential rise in consolidated net profit to Rs 1,465 crore for the quarter ended June 30.
HCL Technologies also impressed investors after posting a 20.32 per cent year-on-year increase in consolidated net profit to Rs 4,624 crore in the first quarter of FY27.
However, Dr. Reddy's Laboratories remained under pressure for a second consecutive week after the pharmaceutical company said commercial supplies of its semaglutide product would be delayed due to an active pharmaceutical ingredient (API)-related quality issue.
Market volatility increased during the week, with India VIX rising 7.3 per cent as investors weighed geopolitical risks, elevated oil prices and the global interest rate outlook.
— IANS
Reader Comments
Good to see IT stocks like HCL and Tech Mahindra performing well. But India VIX rising 7.3% clearly shows nervousness. Retail investors like me should stick to SIPs and avoid panic selling. Long-term story of India remains strong. 🇮🇳
The government's Rs 1.9 lakh crore manufacturing push is a smart move. But these geopolitical risks are unpredictable. We need to diversify our energy sources and reduce dependence on Middle East oil. EV adoption and renewable energy are non-negotiable now.
Dr. Reddy's issue with semaglutide API quality is a big setback. With global demand for diabetes drugs soaring, such quality lapses hurt India's pharma reputation abroad. Hope they fix this quickly and learn from the incident.
While Sensex and Nifty gains are nice, the average Indian investor should be cautious. These geopolitical tensions and oil price surge can easily trigger a correction. Better to book partial profits and keep some cash aside for buying dips. Just my two paise. 🧐
Impressive resilience from Indian markets despite global uncertainties. The domestic fundamentals (earnings, policy support) seem to be outweighing external risks for now. But US dollar strength and interest rate decisions need to be watched closely. Good time for selective investing.
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