The stock markets closed relatively flat on Monday, despite both the BSE Sensex and the NSE Nifty reaching new all-time highs earlier in the day. The BSE Sensex rose by 30.39 points to end at 81,363.11, and the NSE Nifty gained 7.60 points, closing at 24,842.45. These modest gains were driven primarily by strong performances in banking stocks and Larsen & Toubro.
During intraday trading, the Sensex peaked at 81,908.43, while the Nifty hit a high of 24,999.75 before settling lower. Out of the Nifty companies, 25 saw advances, and 25 experienced declines. The top performers included Divi’s Lab, BPCL, Larsen & Toubro, Bajaj Finserv, and M&M. In contrast, the major losers were Bharti Airtel, Titan, Cipla, ITC, and Tata Consumer Products.
In the broader market, the BSE MidCap index increased by 0.4%, and the SmallCap index rose by 0.8%. The Nifty PSU Bank index surged over 3%, reflecting strong investor confidence in public sector banks. The realty sector also saw a positive movement with a 1.68% increase.
Meanwhile, the Indian Rupee fell to a record low due to heightened demand for dollars from importers. Analysts predict a continued negative trend for the rupee due to end-of-month dollar demand and a potential recovery in the US dollar ahead of the Federal Open Market Committee (FOMC) meeting. However, the strength of the domestic market and new Foreign Institutional Investor (FII) inflows might offer some support.
In the commodities market, WTI crude oil prices fell by 4.6% last week, marking the third consecutive weekly decline due to weak demand from China and geopolitical uncertainties in Gaza. Oil prices slightly increased to USD 77.4 per barrel but stayed near the weekly lows. The upcoming OPEC+ meeting on August 1 and recent positive industrial profit data from China are critical factors to monitor.
Varun Aggarwal, founder and managing director of Profit Idea, noted that investors remain cautious ahead of several central bank meetings this week, including those of the Federal Reserve (FOMC), the Bank of England (BoE), and the Bank of Japan (BoJ). These meetings are expected to provide essential insights into future monetary policies, which will influence market directions in the near term.