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Indian equity benchmarks closed higher on Thursday, July 30, extending their gains after a largely range-bound trading session as buying interest in information technology (IT) and automobile stocks, coupled with sustained foreign institutional inflows, supported investor sentiment. Despite the positive close, market participants remained cautious amid concerns over elevated crude oil prices and their potential impact on inflation and corporate profitability.

 

The S&P BSE Sensex ended the session at 77,928.15, gaining 273.55 points, while the NSE Nifty50 settled 66.95 points higher at 24,317.15, reflecting a modest but steady upward movement in the broader market. Throughout the day, benchmark indices traded within a narrow range as investors balanced optimism over corporate earnings and foreign investments against global uncertainties and rising energy prices.

Market analysts said buying in heavyweight IT and automobile stocks helped the indices maintain positive momentum, even as profit booking in select sectors limited the overall upside. The resilience of domestic markets also reflected continued confidence among institutional investors despite mixed global cues.

Foreign institutional investors (FIIs) remained net buyers in Indian equities, providing additional support to market sentiment. According to exchange data, FIIs purchased shares worth ₹2,981.87 crore on a net basis during Wednesday's trading session. Domestic institutional investors (DIIs) also continued their buying streak, recording net purchases worth ₹998.02 crore. The combined inflows from foreign and domestic institutions helped offset intermittent selling pressure and reinforced confidence in the market.

The continued participation of institutional investors is being viewed as a positive indicator for Indian equities, particularly at a time when global markets remain sensitive to inflation concerns, interest rate expectations and geopolitical developments.

On the stock-specific front, the Nifty50 index witnessed an evenly balanced session, with 25 stocks ending in the green while 25 stocks closed lower, highlighting the selective nature of buying during the day.

Among the top performers, Mahindra & Mahindra (M&M) emerged as the biggest contributor to the index's gains, rising 2.26 per cent. The stock attracted strong buying interest following optimism surrounding the company's automotive and farm equipment businesses.

Coal India gained 1.79 per cent, supported by expectations of stable demand and improved earnings prospects. Eicher Motors advanced 1.67 per cent as investors remained optimistic about premium motorcycle demand and the company's long-term growth outlook.

Maruti Suzuki India climbed 1.66 per cent, benefiting from positive sentiment in the automobile sector amid expectations of improving festive season demand and easing supply chain constraints. Tata Motors also featured among the top gainers, with its passenger vehicle segment contributing to a 1.55 per cent rise in the company's share price.

The automobile sector remained one of the strongest performers of the day, driven by expectations of healthy sales during the upcoming festive season and optimism surrounding electric vehicle adoption and product launches. IT stocks also witnessed buying interest as investors accumulated quality technology shares following recent corrections, anticipating stable global demand for digital services.

 

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However, the broader market remained cautious as crude oil prices continued to hover at elevated levels. Higher crude prices raise concerns about imported inflation, increased input costs for companies and pressure on India's current account deficit, all of which could influence corporate earnings and monetary policy going forward.

Market participants are also closely tracking upcoming domestic economic data, corporate earnings announcements and global developments, including central bank policy decisions and geopolitical events, for further direction.

Analysts believe that while institutional inflows continue to provide strong support to Indian equities, volatility may persist in the near term due to external uncertainties. Investors are expected to remain selective, focusing on fundamentally strong companies with healthy earnings prospects.

With benchmark indices ending the session in positive territory and institutional buying remaining robust, Thursday's trading reflected the underlying resilience of the Indian stock market. Going forward, the sustainability of the current upward trend is likely to depend on corporate earnings, macroeconomic indicators, crude oil prices and the continuation of foreign investment flows into domestic equities.