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• Equity benchmark indices rallied more than 1%, with the Nifty reclaiming the key psychological level of 24,000, supported by strong corporate earnings and robust June IIP data, which rose to a nearly two-year high and boosted investor sentiment. Market confidence was further strengthened by Brent crude prices remaining below USD 88 per barrel, steady monsoon progress, and a mixed but stable global market environment.

• The rally was led by IT, pharma, metal, and Electronics Manufacturing Services (EMS) stocks. Broader markets also outperformed, with both mid-cap and small-cap stocks witnessing strong buying interest. The Nifty 500 advance-decline ratio stood at 3:1, indicating broad-based participation across the market. The Nifty surged 265 points, or 1.1%, to close at 24,250.

• Sectorally, the Nifty IT and Metal indices gained more than 2% each, while the Nifty FMCG, Pharma, and Private Bank indices advanced around 1% each.

• IT stocks rebounded sharply after recent weakness triggered by concerns over the global AI trade. The correction in semiconductor stocks across South Korea, China, and Taiwan shifted investor interest towards domestic IT services companies. As a result, Infosys, LTIMindtree, TCS, and HCLTech gained up to 4%. • The Nifty Pharma Index climbed 2%, led by Divi’s Laboratories, which surged 5% to hit a record high of Rs 7,784.

• Metal stocks also witnessed strong buying, with the Nifty Metal Index rising nearly 2% after June IIP growth accelerated to a 23-month high of over 7%, signalling robust industrial activity and healthy domestic demand.

Technical Outlook:

• Nifty index opened with a gap up of around 190 points and remained firmly positive throughout the session. Bulls drove the index above 24280 zones and it closed near its upper band with gains of around 260 points. It formed a bullish candle on the daily frame and has been making higher highs - higher lows from the last three sessions indicating sustained buying momentum. Now it has to hold above 24200 zones for an up move towards 24400 then 24500 levels while support can be seen at 24150 then 24050 zones.

• S&P BSE Sensex index opened with a gap up of around 650 points near 77400 zones on account of easing geopolitical concerns. Post which bulls continued their dominance as the index held its opening gains and inched higher in a slow and steady manner towards 77800 marks. It formed a bullish candle on the daily chart and continues to form higher lows from the last four sessions. The index reclaimed its short term moving averages and closed the session near its day's high with gains of around 890 points. Now it has to hold above 77500 zones for a bounce towards 78000 then 78300 levels while on the downside support is shifting higher at 77300 then 77000 zones.

Derivative Outlook:

• Nifty future closed positive with gains of 0.85% at 24303 levels. Positive setup seen in PGEL, Divis Lab, Kalyan, Manappuram, Cholafin, Bharti Airtel, Auro Pharma, Dixon, Exide and TCS while weakness seen in Phoenix, ICICIGI, Suzlon, CG Power, VMM, Tube Investments, Cummins, Powergrid, Polycab and IOC.

• On option front, Maximum Call OI is at 24200 then 25000 strike while Maximum Put OI is at 24200 then 24000 strike. Call writing is seen at 24200 then 24600 strike while Put writing is seen at 24200 then 24150 strike. Option data suggests a broader trading range in between 23800 to 24600 zones while an immediate range between 24000 to 24500 levels.

• Garden Reach Shipbuilders’ net profit rose 44.2% year-on-year to Rs 173 crore. Revenue increased 38.5% to Rs 1,815 crore. EBITDA grew 32.4% to Rs 149 crore, while the margin narrowed to 8.2% from 8.6%. Other income rose to Rs 100 crore from Rs 72.5 crore.

• V-Guard Industries reported a consolidated net profit of Rs 130 crore in Q1, up 75.7% from Rs 74 crore in the same quarter last year. Revenue grew 23.5% year-on-year to Rs 1,811 crore, against Rs 1,466 crore in Q1 of the previous year. EBITDA rose 55.2% to Rs 192 crore from Rs 124 crore, with EBITDA margins expanding to 10.6% from 8.4% a year ago.

• Gland Pharma receives USFDA approval for Sugammadex Injection - US market size approx. $1.6bn - Company has secured final USFDA approval for its generic Sugammadex Injection (200 mg/2 mL and 500 mg/5 mL single-dose vials). The product, which is bioequivalent to Merck's block-buster drug BRIDION®, was successfully launched on Day 1 through Gland's marketing partner to address a massive USD 1.6 billion US market size.

• SML Mahindra Deal to Buy M&M Truck & Bus Unit - Mahindra & Mahindra’s board approved the sale of its truck & bus division to unit SML Mahindra on a slump sale basis for Rs525cr.

• Inox Wind – Company has secured a 200 MW order worth nearly Rs 1,600 crore from NLC India.

• Tips Music - Company announce to consider share buy-back on August 5th board meeting.

Global Market Update

• European Market - European stocks witnessed mixed trend as upbeat second-quarter results from LVMH lifted sentiment across the luxury sector, offsetting pressure from the global selloff in semiconductor shares.

• Asian Market – Asian stocks fell for a second day as investors rotated out of chip shares amid growing skepticism over whether massive AI spending will deliver sufficient returns. Both South Korea Index and Japan Index dropped 6% and 1.5% respectively.

• US Data - US Fed Interest rate decision.

• Commodity - Brent crude prices gained 4% to above $87/bbl as attacks resumed in the Middle East, jolting investors concerned about the flow of energy out of the region.

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