TLDR

📈 Market Recap: July 21, 2025

On July 21, 2025, Indian equities posted strong gains, buoyed by robust earnings from private sector banks. The BSE Sensex rose 442.61 points (+0.54%) to close at 82,200.34, while the NSE Nifty 50 gained 122.30 points (+0.49%) to settle at 25,090.70. Investor confidence was further supported by easing market volatility, with the India VIX falling to a 52-week low of 11.08, suggesting increased risk appetite. Gains in heavyweight financial stocks offset weakness in energy and select index majors. The rupee weakened to ₹86.29/USD, under mild pressure from dollar demand. Meanwhile, Brent crude held steady near $84/barrel, keeping imported inflation risks in check but limiting upside in oil-linked sectors.

Key Drivers:

• Strong earnings from HDFC & ICICI Bank: Solid Q1 results from both banks, driven by healthy loan growth, stable asset quality, and steady margins, sparked a broad rally in the financial space. HDFC Bank and ICICI Bank together contributed over 60% of Nifty’s gains, lifting investor sentiment.

• Volatility drops to 52-week low: The India VIX dropped to 11.08, its lowest level in a year, reflecting subdued near-term fear. The sharp decline in volatility prompted institutional and retail buying across sectors, especially midcaps and financials.

• Reliance drags on index despite broader gains: Reliance Industries fell over 3%, capping broader index gains. Investors reacted to weaker-than-expected operating performance in the company’s oil-to-chemicals and retail verticals, which offset gains from its Jio business.

Today’s Top Stories:

1. Motilal Oswal Midcap and Quant Small-Cap funds among top 15 SIP winners: Select mutual funds like Motilal Oswal and Quant delivered over 25% SIP returns over 5 years, led by strong small/mid-cap momentum.

2. Nayara Energy condemns EU sanctions, confirms ₹70,000 cr India investment: Nayara, backed by Rosneft, denounces EU sanctions as illegal, affirms ₹70,000 cr expansion plan, and tightens tender terms to protect exports.

3. India’s core sector growth rose to a three-month high of 1.7% in June: Infrastructure output increased as gains in steel, cement, and refinery products outweighed declines in coal, power, and gas.

4. India’s smartphone shipments surge 22% sequentially in Q2: Shipments rose to 39 mn units as new launches from Vivo, Oppo, and Samsung drove a recovery, aided by channel clearance and pre-festive demand.

5. Bonfiglioli's India unit eyes $250m Mumbai IPO: The unit of the Italian gearmaker has roped in four banks to pursue a $250m IPO in Mumbai, joining a growing wave of MNC firms tapping Indian capital markets.

Market Snapshot

Nifty 50 Index Heatmap

Top Gainers & Losers

TOP STORIES

1. Motilal Oswal Midcap and Quant Small-Cap funds among top 15 SIP winners

• Strong SIP performance: Over the last five years, around 15 out of 203 equity mutual funds in India have delivered over 25% annualised returns (XIRR) on SIPs, reflecting sustained investor interest in high-growth themes.

• Top performers named: Standouts include Motilal Oswal Midcap Fund, Quant Small‑Cap Fund, Invesco India Midcap Fund, and Edelweiss Mid‑Cap Fund, showcasing effective fund management and mid-/small-cap market momentum.

• Implication for investors: These schemes highlight the potential of disciplined SIP investing in select mid and small-cap segments, underscoring strong returns despite broader market volatility

2. Nayara Energy condemns EU sanctions, confirms ₹70,000 cr India investment

• Reaffirms ₹70,000 cr investment: Nayara Energy announced it remains committed to pouring ₹70,000 crore into downstream capacity in India, asserting that the moves are vital for long-term energy security. 

• Sanctions labelled “unjustified and illegal”: Backed by Rosneft, Nayara strongly criticised the EU sanctions as "unjust, unilateral, and lacking legal basis," saying they threaten India’s petroleum supply chain and national sovereignty.

• Operational & financial safeguards: Nayara is seeking legal options to challenge the sanctions and has adjusted export payment terms requiring advance payments or LCs for naphtha tenders to safeguard liquidity and business continuity.

3. India’s core sector growth rose to a three-month high of 1.7% in June

• Modest rebound in June: According to Commerce Ministry data, India’s eight core infrastructure sectors expanded by 1.7% year-on-year in June, up from 1.2% in May, marking a three-month high.

• Mixed sector performance: Steel and cement output surged 9.3% and 9.2%, respectively, supported by steady government capital spending. However, coal (-6.8%), electricity (-2.8%), crude oil (-1.2%), natural gas (-2.8%), and fertilisers (-1.2%) continued to contract.

• Implications for growth outlook: Since core industries form about 40% of India’s IIP, the modest infrastructure gain suggests industrial recovery remains shallow. Economists note it may anchor overall IIP growth around 1.5% for June and slow GDP momentum.

4. India’s smartphone shipments surge 22% sequentially in Q2

• Sharp rebound in Q2 shipments: The Indian smartphone market saw a 22% sequential increase and a 7% year-on-year gain, rising to 39 million units in Q2 FY25, reversing declines from the previous two quarters driven by fresh model launches ahead of the festive season.

• Vivo and Oppo lead the revival: Vivo (excluding iQOO) shipped 8.1 million units (21% market share), while Oppo followed with 5 million units; Samsung remained flat at 6.2 million, and Xiaomi declined.

• Inventory normalisation & seasonal push: Channels cleared old stock and embraced new launches amidst easing inventory pressures. Vendors deployed promotions, ambulance financing schemes, and retailer incentives in preparation for upcoming festivals.

5. Bonfiglioli's India unit eyes $250m Mumbai IPO

• IPO on the horizon: Bonfiglioli Transmissions Pvt, the Indian arm of Italian gearmaker Bonfiglioli Group, has hired Axis Capital, ICICI Securities, JPMorgan, and BNP Paribas to explore a $250 million IPO in Mumbai. 

• Riding the MNC IPO wave: The move follows a rising trend of multinational-backed listings after Hyundai’s $3.3bn debut, Carraro’s $147m sale, and LG’s planned $1.7bn issue in India. 

• Diversified industrial play: Bonfiglioli specialises in gearboxes and gearmotors for wind turbines, food processing, packaging, cement, and steel sectors, tapping industrial demand. 

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