Sensex-at-79,930,-Nifty-50-at-24,400

Sensex inches up, Nifty holds above 24,400 as PSU banks shine

The Indian stock market begins the week with a mild recovery after falling for six straight weeks. The BSE Sensex rises by more than 100 points, and the Nifty 50 crosses the 24,400 level. The main push comes from public sector bank stocks, which attract fresh buying after a long phase of weakness. However, the overall mood stays cautious because of the uncertainty surrounding US trade tariffs on Indian exports.

Global market signals remain mixed. While some Asian markets trade higher, concerns about trade relations between major economies keep investors on edge. The Gift Nifty indicates a slightly positive start, reflecting a hope for stability, but the fear of new trade barriers prevents strong momentum.

Market Performance Today

The Nifty 50 trades around the 24,400 mark, showing a small gain compared to the previous session. The Sensex moves close to 79,930 points, up by about 70 points. These gains, though small, bring relief after a long period of selling pressure.

Last Friday, both benchmarks closed lower, with the Nifty slipping below 24,370 and the Sensex falling below 79,860. The change today indicates that buyers are slowly returning to the market, but they are still careful about taking big positions.

Currency Movement and Oil Prices

The Indian rupee opens stronger against the US dollar, rising to  Rs. 87.50 from the previous close. This improvement is supported by a drop in international crude oil prices, which eases concerns over India’s import bill and inflation. A stronger rupee often gives investors more confidence as it signals better control over external trade pressures.

Main Factors Driving the Market

US Tariff Concerns

One of the biggest factors affecting the Indian stock market right now is the trade tension with the United States. The US government has announced a total tariff of 50% on certain Indian goods, with half of it already in effect and the rest expected to be applied by the end of August. The move is linked to India’s purchase of oil from Russia, which the US has opposed.

Investors are closely watching the upcoming meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska on August 15. Any development from this meeting could influence the tariff policy and, in turn, impact India’s export sector and overall market sentiment.

Corporate Earnings Pressure

The quarterly earnings season continues to affect investor mood. Several big companies have reported weaker-than-expected results for the April–June quarter. Tata Motors reports a 63% drop in net profit due to lower vehicle sales and higher costs. Voltas also posts a sharp fall of 58% in its profit, blaming slower demand for its products.

Manappuram Finance records a massive 75% year-on-year decline in profit to  Rs. 138 crore, mainly due to weak growth in its core lending business. In contrast, the State Bank of India posts a healthy 12% rise in profit, supported by strong retail loan growth and treasury gains. These mixed earnings keep the market movement uneven across sectors.

Sector-Wise Performance

Public sector banks lead the gains today, with investors finding value after weeks of selling. Stocks like SBI and Bank of Baroda trade higher as buying interest returns.

Among the other gainers are Grasim Industries, NTPC, Trent, and SBI Life Insurance. These companies benefit from stable earnings outlooks and positive sector trends. On the other hand, some large stocks such as ICICI Bank, Tata Motors, Asian Paints, Tata Consumer Products, and HCL Technologies trade lower due to weak earnings or cautious guidance for the coming months.

Market Capitalization Losses Among Top Companies

The combined market capitalization of six of India’s ten most valuable companies dropped sharply in the previous week. Together, these firms lose about Rs. 1.36 lakh crore in value. Reliance Industries suffers the largest single loss, with its share price hit by concerns over slower growth in some of its businesses. This drop in the valuation of large-cap stocks shows that investor caution is not limited to smaller companies but is affecting the market across all sizes.

Changing Face of Market Participation

New data from the National Stock Exchange shows an interesting change in the investor profile. The share of women investors is rising, with a significant increase in participation from smaller states and towns. This trend suggests that the stock market is becoming more inclusive and diverse.

At the same time, the proportion of young investors has seen a slight fall. Analysts believe this could be due to the recent volatility and the preference of some younger investors to stay away from high-risk assets during uncertain times.

The Road Ahead

The market outlook depends heavily on how trade relations with the United States develop in the coming weeks. Any relaxation or delay in the new tariff policy could lift investor sentiment and attract foreign fund inflows. On the other hand, if the tariffs go ahead as planned, export-oriented companies could face pressure, which may drag the market lower.

Corporate earnings in the next few weeks will also be important. If more companies report strong results like SBI, it could help restore confidence. However, continued weak numbers could keep the market under pressure.

Global factors such as oil prices, currency movements, and the outcome of the Trump–Putin meeting will play a big role in shaping the short-term direction of the Indian stock market.

Final Thought

The Indian stock market starts the week on a slightly positive note, with gains in PSU banks and a firmer rupee providing some relief after weeks of weakness. However, the recovery is fragile, with trade tensions, mixed corporate earnings, and global uncertainties keeping investors alert.

The coming days will test the market’s ability to hold on to its gains. Investors are likely to remain cautious until there is more clarity on tariffs, earnings, and international relations. For now, the tone is one of careful optimism, but the underlying risks are too significant to ignore.