Sensex, Nifty Edge Higher for Second Day; L&T Soars Nearly 5% After Strong Q1

Mumbai, July 30: Benchmark indices Sensex and Nifty ended marginally higher on Wednesday, buoyed by strong gains in Larsen & Toubro (L&T), even as concerns around the India-US trade deal and persistent foreign fund outflows capped broader market momentum.

Key Highlights

The key highlights of Wednesday’s trading session included the Sensex gaining 144 points to close at 81,481.86, while the Nifty added 34 points, settling at 24,855.05. Larsen & Toubro (L&T) was a standout performer, jumping 4.87% after announcing strong Q1 earnings. Foreign institutional investors (FIIs) were net sellers, offloading ₹4,636.60 crore worth of equities, and ongoing trade tensions with the US also limited upside potential for the markets.

Market Performance

Continuing its upward trajectory for a second straight session, the BSE Sensex climbed 143.91 points, or 0.18%, to close at 81,481.86. During intraday trade, it touched a high of 81,618.96, rising 281.01 points, or 0.34%, at its peak. The NSE Nifty 50 ended the day with a gain of 33.95 points, or 0.14%, finishing at 24,855.05, after moving in a narrow range throughout the session. Despite the gains, investor sentiment remained cautious due to rising global trade tensions and heavy foreign fund outflows.

Top Gainers and Laggards

Larsen & Toubro was the standout performer among the top gainers, surging 4.87% after the company reported a 29.8% year-on-year rise in consolidated net profit to ₹3,617.19 crore for the June quarter. This strong performance was largely driven by a surge in overseas orders. Other notable gainers included Sun Pharma, NTPC, Maruti, Bharti Airtel, Trent, and Axis Bank. Conversely, the top losers for the day included Tata Motors, Power Grid, Bajaj Finserv, Hindustan Unilever, and Eternal.

Foreign Fund Flows and Global Cues

Foreign Institutional Investors (FIIs) continued to be net sellers, offloading equities worth ₹4,636.60 crore on Tuesday, according to exchange data. Adding to market worries, US President Donald Trump signaled that the India-US trade deal remains unresolved, citing India’s higher tariffs. Trump’s comments, made aboard Air Force One, suggested the possibility of new US tariffs on Indian imports, further clouding the outlook ahead of the August 1 deadline.

Global Markets and Commodities

In Asia, Japan’s Nikkei 225 and Hong Kong’s Hang Seng closed lower, while South Korea’s Kospi and China’s SSE Composite ended higher. European markets traded on a mixed note, and US indices closed lower on Tuesday. Brent crude futures declined 0.44% to USD 72.19 per barrel, adding further caution to global risk appetite.

Previous Session Recap

In the previous session on Tuesday, the Sensex had rallied 446.93 points, or 0.55%, to end at 81,337.95, while the Nifty gained 140.20 points, or 0.57%, closing at 24,821.10.

What Does This Mean For Investors?

• Indices Stay Positive, But Caution Persists: Sensex and Nifty extended gains for the second day, though advances were modest amid lingering concerns over the India-US trade tensions and FII outflows.
• L&T Leads Market Optimism: Larsen & Toubro’s nearly 5% rally on strong Q1 results (29.8% YoY profit growth) buoyed sentiment and was instrumental in lifting benchmark indices.
• FII Selling Continues: FIIs sold equities worth ₹4,636.60 crore, indicating risk-off sentiment among global investors despite positive domestic corporate results.
• Global Uncertainty Capping Upside: Caution around US tariffs on Indian goods, weaker global cues, and declining crude prices kept broader markets in check.
• Defensive and Domestic Plays Favoured: Gains in names like Sun Pharma, NTPC, and Maruti suggest a shift towards relatively safer or domestically driven stocks amid macro headwinds.

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