Key Points

The Indian stock market witnessed strong gains as the Sensex surged 540 points, driven by banking and auto stocks. Nifty 50 also rose 159 points, reflecting broad-based sectoral strength. Global optimism around the US-Japan trade deal further lifted investor sentiment. Analysts now await the Fed's interest rate decision for further market direction.

Key Points: Indian Stock Market Surges as Sensex Jumps 540 Points Amid Value Buying

  • Sensex climbs 540 points led by Tata Motors and ICICI Bank
  • Nifty 50 gains 159 points amid sectoral strength
  • US-Japan trade optimism boosts global investor sentiment
  • Rupee remains steady as markets await Fed rate decision
2 min read

Indian stock market surges amid value buying, Sensex jumps 540 points

Sensex and Nifty rally as banking, auto, and IT sectors drive gains amid positive global cues from US-Japan trade pact.

"The day was characterised by robust performance across key sectors such as Banking, Financial Services, Automobiles, Healthcare, and Information Technology. – Ashika Institutional Equities"

Mumbai, July 23

The Indian stock market settled in positive territory on Wednesday following buying in banking, financial services, automobiles and healthcare sectors amid positive global cues surrounding the US-Japan trade pact.

Sensex closed at 82,726.64, up 539.83 or 0.66 per cent. The 30-share index opened with a decent gap-up at 82,451.87 against last session's closing value of 82,186.81. The index soared further to hit an intraday high of 82,786.43, following buying interest in heavyweights like Tata Motors, Bharti Airtel and ICICI Bank.

Nifty 50 closed at 25,219.90, up 159 points or 0.63 per cent.

"The day was characterised by robust performance across key sectors such as Banking, Financial Services, Automobiles, Healthcare, and Information Technology. In contrast, pockets of weakness persisted in Realty, Media, Consumer Goods, and Metals, reflecting a sectorally bifurcated landscape," said Ashika Institutional Equities in its note.

On the global stage, investor sentiment soared following optimistic developments surrounding the US-Japan trade pact, igniting expectations for further international agreements shortly.

Tata Motors, Bharti Airtel, Bajaj Finance, Maruti Suzuki, Bajaj FinServ, HDFC Bank, ICICI Bank, Eternal, Asian Paints, and SBI were top gainers from the Sensex's stocks. Hindustan Unilever, Infosys, and Ultratech Cements ended the session in red.

Meanwhile, 37 stocks advanced and 13 shares declined from Nifty50.

Among sectoral indices, Nifty Bank settled 454 points or 0.80 per cent higher, Nifty Auto surged 203 points or 0.85 per cent and Nifty IT closed 92.60 points or 0.25 per cent up. Nifty FMCG declined.

Broader indices followed the gaining momentum as well. Nifty Net 50 surged 159 points, Nifty 100 rallied 0.55 per cent or 142 points, and Nifty Midcap 100 ended the session up 203 points or 0.34 per cent. Nifty Smallcap 100 settled flat.

Rupee traded flat in a narrow range near 86.40, with marginal movement of 0.01 per cent against the dollar. The dollar index also remained steady around 97.40 as markets awaited further cues.

"Domestic capital markets gained 0.65 per cent, while Fed Chair Powell’s recent speech kept the dollar range-bound. Attention now shifts to next week’s U.S. interest rate decision, which will be a key directional trigger. Rupee is expected to trade within a range of 85.80–86.70," said Jateen Trivedi of LKP Securities.

- IANS

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Reader Comments

P
Priya S
Good to see banking sector performing well, but why is FMCG struggling? HUL down again while Asian Paints gains. Seems like selective buying happening in the market.
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Arjun K
Bhai log, this is just a temporary relief rally. US interest rate decision next week will be the real test. Don't go all-in yet. SIP is still the safest option for retail investors like us.
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Sarah B
As an NRI investor, I'm happy to see the rupee stabilizing around 86.40. Makes my remittances go further. The auto sector surge is particularly interesting - might consider adding Maruti to my portfolio.
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Karthik V
Midcaps showing good momentum finally! But smallcaps flat - shows investors are still cautious. Smart money moving to quality largecaps while testing waters in select midcaps.
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Nisha Z
Realty sector continues to disappoint despite all the government schemes. When will this sector revive properly? So many of my friends invested in realty stocks are stuck with losses.

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