The month of July just concluded with a bang, as both the Nifty 50 and the Sensex extended their winning streaks. The Nifty 50 climbed 4% to touch 24,951 points, just shy of the coveted 25,000 mark, which it nearly breached on July 29. This is the second consecutive month of gains, a trend rarely seen.
The Sensex wasn’t far behind, climbing 3.43%. Together, these indices pushed the total market capitalization to a staggering ₹460 lakh crore or $5.5 trillion.
Why did Nifty50 Soar in July?
Beyond the headline indices, sectoral rotation has been a key driver of this rally. Despite post-budget volatility caused by increased capital gains tax and STT on derivatives, investors remained optimistic. Global cues have also played their part, with positive sentiment spilling over into the domestic market. Interestingly, while foreign investors have been net sellers, domestic investors, particularly through mutual funds, have stepped in to support the market.
Plus, it’s the 49th record high for the Nifty in 2024 alone, a testament to the underlying strength of the Indian economy and investor confidence.
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Stock Market Sectors that Performed in July 2024
1. IT sector
The sector continued its stellar run, with the Nifty IT index soaring 13% in July. This impressive performance was fueled by strong quarterly results from tech giants, which aligned with market expectations. Positive brokerages reports further added to the sector’s bullish momentum.
2. The FMCG sector
This sector also enjoyed a strong month, gaining 9.38%. The government’s increased focus on rural development, evident in the budget allocations, boosted consumer sentiment and drove demand for FMCG products. This positive rural outlook also benefited the auto sector, particularly two-wheelers, leading to a 6% gain for the Nifty Auto index.
3. The Pharma sector
This sector wasn’t left behind, with a remarkable 10.50% surge. Strong quarterly earnings from pharma companies were the primary catalyst for this impressive performance.
Top 5 Gainers (as on 31 July, 2024)
| Symbol | Open | High | Low | Prev. Close | LTP | %Change | Volume (Shares) | Value (₹ Lakhs) |
| MARUTI | 12,980.00 | 13,375.00 | 12,895.15 | 12,873.65 | 13,375.00 | 3.89 | 8,36,405 | 1,08,979.64 |
| JSWSTEEL | 908.95 | 936.35 | 902.7 | 902.1 | 933 | 3.43 | 27,16,481 | 25,004.12 |
| HDFCLIFE | 697.2 | 719 | 693.1 | 697.2 | 716.75 | 2.8 | 66,83,204 | 47,589.09 |
| ASIANPAINT | 3,005.05 | 3,098.00 | 3,005.05 | 3,005.05 | 3,087.30 | 2.74 | 35,49,501 | 1,09,166.68 |
| NTPC | 409.5 | 417.4 | 408.55 | 406.95 | 415.85 | 2.19 | 2,97,27,771 | 1,23,370.25 |
Maruti Suzuki India Ltd
Maruti Suzuki India Ltd. is a dominant force in India’s passenger car market. Renowned for its strong brand image and a wide range of affordable yet reliable vehicles, the company has captured a significant share of the domestic market. Maruti Suzuki’s focus on fuel efficiency has made its cars a popular choice among Indian consumers. Additionally, the company’s robust after-sales service network has contributed to its sustained success.
JSW Steel
JSW Steel is a prominent player in India’s steel industry with a substantial presence both domestically and internationally. Known for its operational efficiency and cost-effectiveness, the company has established itself as a major steel producer. JSW Steel’s strategic focus on expanding its production capacity and diversifying its product portfolio, including value-added steel products, has been instrumental in its growth trajectory.
HDFC Life
HDFC Life is a leading life insurance company in India, backed by the strong reputation of the HDFC Group. The company offers a comprehensive range of life insurance products tailored to meet the diverse needs of its customers. With a wide distribution network, HDFC Life has successfully reached a vast customer base across the country. Its commitment to customer satisfaction and financial security has been key to its growth and market leadership.
Asian Paints
Asian Paints is a dominant player in the Indian paint industry and holds a strong position in the global market. The company’s extensive product portfolio, encompassing a wide range of paints and coatings, caters to both residential and commercial customers. Asian Paints has built a strong brand reputation through consistent innovation and a focus on premiumization. Its robust distribution network ensures the widespread availability of its products.
NTPC
NTPC is India’s largest power generation company, playing a pivotal role in meeting the nation’s electricity demands. With a diversified generation mix that includes thermal, hydro, and renewable energy sources, NTPC has demonstrated its commitment to sustainable power generation. The company’s operational efficiency and financial stability have been instrumental in its success. NTPC’s focus on expanding its power generation capacity and adopting clean energy technologies positions it as a key player in India’s energy landscape.
Top 5 Losers (as on 31 July, 2024)
| Symbol | Open | High | Low | Prev. Close | LTP | %chng | Volume (Shares) | Value (₹ Lakhs) |
| BRITANNIA | 5,897.00 | 5,897.00 | 5,770.15 | 5,842.20 | 5,800.00 | -0.72 | 2,71,796 | 15,814.12 |
| DRREDDY | 6,803.90 | 6,829.50 | 6,735.00 | 6,804.15 | 6,755.90 | -0.71 | 3,46,174 | 23,442.35 |
| APOLLOHOSP | 6,664.25 | 6,686.75 | 6,584.15 | 6,641.00 | 6,598.00 | -0.65 | 3,52,268 | 23,323.56 |
| TATACONSUM | 1,193.00 | 1,193.00 | 1,167.00 | 1,194.90 | 1,188.00 | -0.58 | 29,94,289 | 35,359.56 |
| RELIANCE | 3,008.00 | 3,020.90 | 3,002.30 | 3,026.30 | 3,009.00 | -0.57 | 50,28,673 | 1,51,404.29 |
Britannia Industries Ltd
Britannia Industries is a leading fast-moving consumer goods (FMCG) company in India, with a strong presence in the biscuits and bakery segment. Known for its iconic brands and consistent product innovation, Britannia has a wide distribution network and a significant market share. The company has been expanding its product portfolio to cater to evolving consumer preferences.
Dr. Reddy’s Laboratories Ltd
Dr. Reddy’s Laboratories is a global pharmaceutical company headquartered in India. It focuses on providing affordable medicines to patients worldwide. The company has a strong presence in the generics market and is also involved in the research and development of new drugs. Dr. Reddy’s has a diversified product portfolio and a global distribution network.
Apollo Hospitals Enterprise Ltd
Apollo Hospitals Enterprise Ltd is a leading healthcare provider in India, operating hospitals, pharmacies, and clinics. Known for its quality healthcare services and medical expertise, Apollo Hospitals has a strong brand reputation. The company has expanded its presence through a network of hospitals across India and has ventured into various healthcare-related businesses.
TATA Consumer Products Ltd
TATA Consumer Products Ltd is a fast-growing FMCG company with a diversified portfolio of products including tea, coffee, salt, and other consumer staples. The company benefits from the strong Tata brand and has a wide distribution network. TATA Consumer Products has been focusing on expanding its product offerings and strengthening its market position.
Reliance Industries Ltd
Reliance Industries Ltd. is a multinational conglomerate with a diverse range of businesses including petroleum, petrochemicals, refining, and retail. As one of India’s largest and most influential companies, Reliance has a significant impact on the Indian economy. The company has been investing heavily in new energy, technology, and retail sectors to drive future growth.
The Final Word
While the market has been on a roll, it’s essential to remember that valuations have reached elevated levels. However, the sustained enthusiasm of retail investors has been a key factor in driving the market higher.
As the market enters August, investors will be watching closely to see if the momentum can be sustained. Factors such as global economic conditions, earnings season, and geopolitical events will continue to influence market sentiment.
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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
