Market Overview

Equity markets remained volatile in July. Mounting tension in West Asia and the consequent rise in crude oil prices hit investor sentiments across the globe. Between June 21 and July 21, the Sensex gained 46 points, or 0.46 per cent. Markets lacked a clear direction. Similarly, the Nifty too gained 22 points, or 0.74 per cent.

The Sensex fell 359.24 points, or 3.45 per cent, on June 26 as the news of Mittal-Arcelor merger unfolded. SAIL was the hardest hit among index stocks, closing nearly 7.5 per cent lower. Tata Steel and Hindalco lost more than 6.5 per cent. Markets recorded the highest single-day gain on June 30 in the period under review, with the Sensex ending up 447 points (4.4 per cent) at 10,609.25. Strong rally in global markets and expectation of an end of US rates hikes kept sentiments high. HLL gained the most among index stocks, ending 9.5 per cent up. On July 12, markets shrugged off the Mumbai blasts and closed around 3 per cent higher. The Sensex closed up 316 points at 10,930. The sentiments remained bullish after Infosys reported a 50 per cent jump in Q1 net profit. It was a tailspin again on July 17, the Sensex lost 385 points to end at 10,293. On July 20, the Sensex recorded impressive gains of 3.4 per cent, to end at 10,353. The recovery followed strong overseas markets. The first quarter results of Ranbaxy, Gujarat Ambuja and Reliance also helped the markets to strengthen.