July performance: Nifty soars for fourth consecutive month; 34 stocks shine in the green

The Nifty 50 index continued its winning streak for the fourth consecutive month in July, surging by nearly 3%. After a relatively flat performance in FY23, the index gained significant momentum in FY24, delivering returns of 4.06%, 2.60% and 3.55% in April, May and June. The cumulative surge in FY24 so far stands at an impressive 14%.

During July, the Nifty 50 index achieved a notable milestone by crossing the 19,900 level for the first time, reaching a historic high of 19,991. It covered 991 points in just 14 trading sessions after hitting the 19,000 mark on June 28.

In the Asian markets, several key indices witnessed positive movements. Kosdaq climbed by 7.80%, South Korea's Kospi added 2.66%, and Topix soared by 1.48% in July. On the other hand, the Nikkei 225 ended the month on a relatively flat note.

In the United States, major indices also displayed robust performance. The Dow Jones Industrial Average soared by 3.35%, the S&P 500 finished July with a gain of 3.11%, and the tech-heavy Nasdaq rallied by an impressive 4.05%.

34 stocks in the Nifty50 index registered gains in July, while 16 ended in the red. Cipla emerged as the top performer during this period with a rally of 15.8%, followed by NTPC, ONGC, Hero MotoCorp, Tata Steel, and Hindalco Industries.

On the other hand, UPL secured the top laggard position, followed by HCL Technologies, Eicher Motors, LTI Mindtree, Britannia Industries, HUL, and Axis Bank.

The Nifty Media index stood as the top-performing index among all NSE indices in July, surging by approximately 19.65%. Eight out of 10 components of the index have yielded returns in the range of 1% to 33%.

The list is topped by Zee Entertainment Enterprises, followed by DLF, Navneet Education, Dish TV India, Sun TV Network, PVR INOX, and Hathway Cable & Datacom.

Similarly, the Nifty PSU Bank index saw a surge of 12.42% during the month, resulting in a gain of 24.32% in FY24 so far. In April, 7 out of 12 stocks listed on the index achieved double-digit returns, with UCO Bank being the largest gainer with a rally of 23.18%.

Other sectoral indices, including Nifty Metal, Nifty Pharma, Nifty Energy, Nifty Realty, and Nifty Infra, also saw gains in the range of 5-9% in July.

Despite the subdued Q1 earnings, the Nifty IT index gained by 1.24%. This came after the inflation in the U.S. came in lower than estimates. According to media reports, the annual inflation rate in the U.S. came in lower than expected at 3% in June, the lowest since March 2021. When compared to May, the inflation rate was down by about 1000 basis points.

The controlled inflation in the US has instilled optimism among investors that a 25-basis-point rate hike would be sufficient to stabilise the US economy. This improved outlook has fueled strong buying interest in Indian IT stocks, despite the subdued Q1 earnings, according to analysts.

Foreign portfolio investors (FPIs) continued to be bullish on the Indian markets, pumping in a significant ₹46,618 crore in July. This brings the total inflow into the equity market to ₹1.23 lakh crore so far this year, as per NSDL data.

This robust inflow sharply contrasts with the previous year, as FPIs offloaded Indian equities worth ₹1.21 lakh crore in CY22, marking the highest yearly outflow since the 2008 global financial crisis.

On the commodities front, crude oil prices registered their largest monthly gain since March 2021. Brent crude futures settled 13.45% higher at $85.43 a barrel last month. West Texas Intermediate (WTI) gained 15.57% to $81.80 a barrel during the same period.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.