Indian equity markets turned volatile on Thursday, July 30, as the Sensex moved between gains and losses while the Nifty struggled to hold above the 24,250 mark. Investors remained cautious after the US Federal Reserve kept interest rates unchanged but signalled uncertainty over the future path of monetary policy. At the same time, mixed global cues, elevated crude oil prices and ongoing geopolitical tensions kept sentiment in check.
The 30-share BSE Sensex opened lower and fell more than 100 points during morning trade before recovering some ground. The Nifty50 also slipped below 24,250 after opening in the red. The market’s movement reflected a tug-of-war between buying in information technology stocks and selling across financial and realty shares.
The IT sector emerged as the biggest source of support for the market. The Nifty IT index gained nearly 2%, with investors showing renewed interest in technology stocks. Auto, oil and gas, media and cement stocks also traded higher. On the other hand, the Nifty Realty index fell more than 1.5%, making it the weakest sectoral performer. Financial services, private banks, chemicals and mid-cap stocks also remained under pressure.
Among the major gainers, Infosys and Tech Mahindra were among the prominent names supporting the technology rally. The broader IT pack benefited from buying interest as investors looked beyond weakness in global semiconductor stocks. The sector has also been one of the stronger performers during July, with the Nifty IT index heading for its best monthly performance in several years.
However, the gains were not broad-based. Adani Ports fell around 3% despite reporting a strong first-quarter performance. The company posted a 9% year-on-year rise in consolidated net profit to ₹3,620 crore, while revenue increased 18.5% to ₹10,821 crore. EBITDA rose 19% to ₹6,540 crore, with the EBITDA margin improving to 60.4%. Despite the numbers, investors chose to book profits in the stock.
Eternal was another major laggard at the opening, falling around 2%. Vedanta Oil & Gas also declined nearly 4% despite returning to profitability in the June quarter. The company reported a consolidated net profit of ₹945 crore compared with losses in the year-ago and previous quarters. Revenue increased 8.5% year-on-year to ₹2,507 crore, but an exceptional loss of ₹441 crore weighed on investor sentiment.
Waaree Energies also came under selling pressure. Its shares dropped nearly 6% even though the company reported a 15.4% year-on-year increase in consolidated net profit to ₹891.87 crore. Revenue jumped 79.2% to ₹7,931.79 crore, helped by higher production and strong demand. The fall suggested that investors were more focused on valuations and expectations than simply on headline earnings growth.
KPIT Technologies was another notable loser, falling around 7% after its quarterly profit declined 32% to ₹117 crore. The sharp reaction highlighted how investors are closely scrutinising corporate earnings as the June-quarter results season gathers pace.
On the positive side, Redington attracted strong buying after reporting a 77% year-on-year jump in first-quarter profit and a 35% rise in revenue. Its shares gained as much as 15% in morning trade, making it one of the standout movers in the broader market.
The market was also watching several new listings. Indo-MIM made its debut on the BSE and NSE at a substantial premium of around 45% to its issue price, signalling strong investor appetite for select new-age and manufacturing opportunities. Lohia Corp and Xtranet Technologies also listed at premiums of around 8% and 7%, respectively.
Global developments continued to influence trading. The US Federal Reserve kept interest rates unchanged at its latest meeting, but the decision was marked by an unusually divided policy outlook. Some policymakers indicated that further rate hikes could be required if inflation remains persistent. This hawkish tone has created uncertainty for global equity markets because higher US interest rates can reduce the attractiveness of emerging-market assets.
Crude oil remained another important factor for Indian investors. Oil prices had surged sharply on Wednesday amid escalating US-Iran tensions before easing on Thursday. Lower crude prices provided some relief, but continued geopolitical uncertainty remained a concern for an oil-importing economy such as India. Higher crude prices can increase inflationary pressure and widen the country’s import bill.
Market analysts said the near-term trend remained volatile rather than decisively bearish. Geojit Investments chief market strategist Anand James identified the 24,190-24,145 zone as an important support area for the Nifty. A break below 24,085, he said, could accelerate selling pressure. Geojit chief investment strategist VK Vijayakumar also pointed to Brent crude and the Fed’s hawkish stance as near-term headwinds, while noting that domestic fundamentals and renewed foreign portfolio investor buying could provide support.
The Sensex and Nifty are likely to remain sensitive to corporate earnings, crude oil prices, foreign fund flows, the rupee and developments around US monetary policy. For now, the market’s inability to decisively hold above 24,250 suggests that investors are approaching the next leg of the rally with greater caution.