Stocks close higher in rangebound session; Midcaps lag, PSU banks rally for sixth day

The domestic equity indices ended Tuesday’s session largely in the green after a subdued, rangebound trade, with headline indices supported by gains in select index heavyweights and banking stocks. However, broader market sentiment remained mixed, with midcap shares snapping a seven-day winning streak amid profit-taking.The benchmark BSE Sensex rose 91 points, or 0.11%, to settle at 83,697, while the broader NSE Nifty 50 edged up 29 points, or 0.11%, to close at 25,546, maintaining its psychological 25,500 mark. The Nifty Bank index climbed 154 points, or 0.27%, to end at 57,467, buoyed by sustained buying in public sector lenders.
Public sector banks continued their bullish momentum, with the Nifty PSU Bank index rising for a sixth straight session. Karur Vysya Bank gained over 2% after reporting a strong business update for the June quarter, further fueling optimism in the sector.
Among index movers, Apollo Hospitals Enterprises Ltd surged 3.5%, topping the Nifty gainers’ list, following the company’s announcement of a restructuring plan aimed at unlocking value. Reliance Industries Ltd advanced nearly 2% to a nine-month high after a global brokerage upgraded the stock, citing improved earnings visibility across its key verticals.
Auto stocks were mixed following June sales updates. Mahindra & Mahindra Ltd and Eicher Motors Ltd ended higher, while Tata Motors Ltd slipped, reflecting muted investor response to its monthly numbers.Meanwhile, midcap shares underperformed, with the Nifty Midcap 100 index declining 23 points to end at 59,719, as traders booked profits after a strong run. Market breadth reflected the indecisiveness, with the advance-decline ratio slipping to an even 1:1.

In the broader market, Gabriel India Ltd hit the 20% upper circuit on a restructuring announcement. Conversely, shares of Sigachi Industries Ltd extended losses, plunging nearly 17% across two sessions after a fire incident at its Telangana unit raised operational concerns.

Dixon Technologies (India) Ltd dropped almost 2% after Morgan Stanley downgraded the stock, citing elevated valuations. Shares of NMDC Ltd lost nearly 3% after the miner announced a cut in prices of lumps and fines.

The market is likely to remain stock-specific in the near term, with investors monitoring corporate earnings updates and global cues. Analysts expect volatility to persist ahead of the upcoming earnings season, even as headline indices exhibit relative stability.