What happened in the Indian stock market today?

The two major indices, Sensex and Nifty 50, initially opened in the red but managed to recover and close on a high note, continuing their trend of setting new record highs. 

The Sensex climbed by 181.87 points (0.24%) to close at 76,992.77, while the Nifty 50 rose by 66.70 points (0.29%) to finish at 23,465.60. Notably, the Nifty 50 touched a fresh lifetime high of 23,490 during the last hour of trading, thanks to robust performances from financial services and automobile stocks.

The day’s movements were influenced by multiple factors, including sector-specific gains, profit booking in IT stocks, and anticipation surrounding the upcoming union budget.

Impact on the stock market

On the sectoral front, Nifty Auto, Consumer Durables, Realty, Metal, Oil & Gas, Financial Services, and FMCG all ended the day in the green, with gains ranging from 0.4% to 1.30%. 

However, IT stocks lagged due to profit booking, following a strong performance on Thursday when they rose over 1% due to revived anticipation of US interest rate cuts.

Top gainers today

Top losers today

Market aftermath: Impact on stocks

Defence stocks on rise

Defence stocks experienced a significant surge, driven by policy continuity optimism. Union Minister Rajnath Singh reaffirmed the government’s target to boost defence sector exports to ₹50,000 crore over the next five years. 

This announcement spurred investor confidence, leading to sharp gains for several defence companies. PTC Industries soared by 20% to a new record high of ₹14,930, Paras Defence and Space Technologies jumped 18% to ₹1,141, and BEML gained 13% to reach ₹4,516.95. 

Other defence stocks, including Bharat Electronics and MTAR Technologies, also saw gains between 3% and 8%.

Insurance stocks gains over 5%

Insurance stocks also enjoyed a positive day, driven by strong May premium data. Shares of ICICI Lombard, LIC, Star Health, and others surged up to 5%. 

The general insurance industry saw premiums rise by 15% year-on-year (YoY) in May, while standalone health insurance premiums jumped by 26% YoY. This robust growth reflected positively on the stock prices of major insurers.

Tata Elxsi gains on Red Hat collaboration

Tata Elxsi, a design and technology services company, made headlines today with its shares rising by around 2%. The boost came after the announcement of a strategic collaboration with Red Hat, a leading provider of enterprise open-source solutions. This partnership aims to accelerate network monetization for telecom companies by simplifying operations in 5G networks. 

Crude Oil saw a dip

Crude oil futures experienced a slight dip due to profit booking after a strong week. As of Friday morning, Brent oil futures for August were down by 0.51% at $82.33, while July crude oil futures on WTI dropped by 0.61% to $78.14. 

Similarly, on the Multi Commodity Exchange (MCX), June crude oil futures traded at ₹6534, down by 0.52%, and July futures were at ₹6520, down by 0.46%. This minor decline reflects traders’ cautious stance following a period of gains.

Conclusion

Today’s trading session showcased a mix of optimism and strategic profit booking across various sectors. The anticipation of the upcoming union budget has fueled positive sentiment, pushing the Sensex and Nifty 50 to new heights. 

Defence, insurance, and automobile sectors were the star performers, while IT stocks saw some pullback due to profit-taking.

As we approach the budget announcement, the market dynamics are likely to stay vibrant, with investors keeping a keen eye on policy cues and sectoral developments. 

Stay tuned for more updates on StockGro!