A Week of Mixed Performance: Sensex Ends Flat, Nifty Holds 24,300 as Sectoral Trends Diverge


The Indian stock market witnessed a week of cautious optimism with the BSE Sensex and Nifty 50 indices ending largely flat. The Sensex closed below 80,000, while the Nifty managed to hold onto the crucial 24,300 mark. Despite the lack of significant movement in headline indices, a closer look reveals a week marked by strong sectoral performances and notable gainers and losers.

Sectoral Standouts and Laggards:

Financial services and banking stocks emerged as the biggest laggards of the week. HDFC Bank, a heavyweight in both indices, experienced a 4% drop due to concerns around lower Q1 advances and stagnant deposit growth. This sentiment impacted other major players in the sector, contributing to the overall decline.

On the other hand, some sectors defied the broader market trend and registered impressive gains. Defence stocks surged after the government extended the customs duty exemption for five years. Cochin Shipyard, BEL, BEML, and HAL were among the top gainers, with their share prices soaring to record highs. This positive movement reflects investor confidence in the growth prospects of the Indian defence sector.

FMCG Bets on Rural Revival:

The FMCG (Fast-Moving Consumer Goods) sector also exhibited positive sentiment. Leading companies like Marico, Dabur, and Adani Wilmar expressed optimism for Q1FY25, anticipating revenue growth in the mid to high single-digit range. This optimism stems from a revival in rural demand, which is expected to be a key driver for the sector in the coming quarter.

Global Cues and FPI Inflows:

Global cues also played a role in shaping the market’s performance. The inclusion of select Indian government securities in the JPMorgan Global Bond Index on June 28th attracted significant foreign investment interest. Over the past week, foreign investors poured more than Rs 5,200 crore into fully accessible route (FAR) bonds, indicating growing confidence in the Indian debt market. This inflow is expected to exert downward pressure on bond yields, potentially impacting equity markets as well.

Key Gainers and Losers:

Among individual stocks, some notable gainers included:

  • Mahindra & Mahindra (Up 2.67%): The auto major’s strong performance reflects positive sentiment in the automobile sector.
  • Power Grid Corporation of India (Up 2.15%): The continued focus on infrastructure development is driving investor interest in power sector companies.
  • Adani Wilmar (Up 13%): The company’s robust sales and distribution network helped it achieve strong volume growth in Q1, defying industry trends.
  • Cochin Shipyard (Up XX%): The extension of the customs duty exemption on defense equipment significantly boosted the company’s share price.

Conversely, some significant losers during the week included:

  • HDFC Bank (Down 4%): Concerns regarding lower Q1 advances and muted deposit growth led to a decline in investor confidence.
  • IndusInd Bank (Down 2.41%): The banking sector’s overall weakness impacted IndusInd Bank as well.
  • Cipla (Down 2.41%): The pharmaceutical sector witnessed some profit booking after recent gains.
  • Tata Steel (Down 1.10%): Steel prices remain volatile, impacting investor sentiment in the steel sector.

Looking Ahead:

The upcoming Union Budget on July 10th will undoubtedly be a major factor influencing the stock market in the coming weeks. A fiscally prudent budget outlining measures to promote economic growth and stability will likely be met with positive sentiment. Additionally, the global economic environment and the performance of key sectors like financials and IT will continue to be closely monitored by investors.


Last week’s market performance underscores the importance of a nuanced analysis beyond headline indices. While the Sensex and Nifty remained flat, sectoral trends revealed pockets of strength and weakness. FMCG, defence, and some auto stocks exhibited promising growth potential, while financials and certain pharma companies faced headwinds. The upcoming budget and global economic cues will likely shape investor sentiment in the coming weeks.

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