Sensex, Nifty break gaining streak; HDFC Bank tanks nearly 5%
What's the story
On July 5, benchmark indices Nifty and Sensex ended their two-day gaining streak, with the Sensex falling by 0.57% to 79,590 and the Nifty slipping by 0.44% to 24,194. This decline was primarily led by Nifty Bank and auto stocks. Ruchit Jain, an equity analyst at 5paisa attributed this to overbought setups causing pullback moves but reassured that "nothing to worry about as the market breadth is still solid."
Banking sector
HDFC Bank shares slump following Q1FY25 business update
HDFC Bank, India's largest private bank, saw its shares slump by 4.5% after posting a weaker-than-expected business update for the April-June quarter (Q1FY25). At the time of writing, it was trading at ₹1,650. Despite reporting a robust year-on-year growth of 52.6% in gross advances to ₹24.87 lakh crore for Q1FY25, this figure was down by 0.8% quarter-on-quarter. This led to concerns among analysts and impacted the bank's stock performance.
Market trends
Pharma, healthcare sectors gain; midcap, smallcap indices rise
Sectoral indices data revealed that banking and auto sectors were the top losers with HDFC Bank and Bandhan Bank (down 1.8%) being most affected. However, pharma and healthcare sectors saw gains of 0.4% each. Kranthi Bathini, director of equity research at WealthMills Securities commented on this trend: "The beauty of this market is the leadership rotation playing out very well." Additionally, midcap and smallcap index rose by 0.1 and 0.5% respectively, continuing their outperformance in the market.
Market performance
VIX rises, major gainers and losers on Nifty identified
The VIX or fear gauge rose by 0.4% in today's session to be at around the 13 level. Major gainers on the Nifty included Cipla, Divis Laboratories, Hindalco, Bajaj Auto and L&T while HDFC, M&M, Tata Steel, Titan Company and Bajaj Finserv fell the most. Sameet Chavan, technical and derivatives research head at Angel One provided insight on Nifty's performance: "On the level-specific front, the highs of 24400 could be seen as intermediate resistance for Nifty."
Market growth
Midcap, smallcap indices surge post-election
Official data showed that both the BSE midcap and smallcap indices have surged by 15.4% and 19.6%, respectively, one month after the election result on June 4. This continued outperformance of broader markets is indicative of a positive trend in these sectors. Chavan further noted that "24200-24150 is likely to provide some cushion to any upcoming blips" in Nifty's performance.