Top Gainers and Losers on July 10: Bharat Dynamics, Solar Industries, Garden Reach, Bharti Airtel among top losers

Indian Markets End Flat Amid Sectoral Rotation

On Wednesday, July 10, Indian benchmark indices ended the session on a flat to slightly positive note, even as the market showed signs of sectoral divergence. While the Nifty 50 hovered above the 25,500 mark, select pockets of the defense and telecom sectors witnessed noticeable profit-booking. Meanwhile, auto and select capital goods stocks were seen outperforming.

At close, the BSE Sensex ended marginally up by 114 points at 84,460, while the Nifty 50 settled at 25,537, gaining just 34 points. Broader markets traded mixed, with the Nifty Midcap 100 down 0.28% and the Nifty Smallcap 100 up 0.44%.

Top Losers: Defense Stocks Face Profit-Booking

1. Bharat Dynamics Ltd (BDL): -4.62%

The defense PSU stock tumbled over 4.6% to close at ₹1,303. The stock had been on a strong rally over the past few weeks amid rising defense orders and optimism around the “Make in India” campaign. However, on Wednesday, traders booked profits, dragging the stock lower.

“BDL had run up sharply in anticipation of fresh orders and export opportunities. Today’s fall is largely technical in nature,” said Kunal Shah, Senior Technical Analyst at LKP Securities.

2. Solar Industries India Ltd: -3.78%

Solar Industries declined nearly 3.8% to ₹7,220. Despite long-term fundamentals remaining intact, short-term volatility and rising input costs are weighing on the stock. The defense explosives manufacturer has also seen some delay in export orders, leading to cautious sentiment.

3. Garden Reach Shipbuilders: -3.45%

Another defense-linked stock, Garden Reach fell 3.45% to ₹1,886. Analysts cited concerns over rising raw material costs and valuation concerns after a sharp rally over the past two months.

4. Bharti Airtel: -2.15%

Telecom major Bharti Airtel ended lower at ₹1,470, shedding over 2%. The stock reacted to concerns about competitive pressures and the potential delay in ARPU (average revenue per user) growth following Jio’s tariff announcement.

“There’s growing investor concern around Bharti’s ability to pass on tariff hikes without losing subscribers, especially as Jio remains aggressive,” noted Devang Mehta, Head of Equity Advisory at Centrum Wealth.

5. Bharat Electronics Ltd (BEL): -1.92%

BEL, another major defense PSU, was down nearly 2%, dragged by profit-booking in the defense segment. The stock had gained over 18% in the past month, so the correction is seen as part of a healthy consolidation.

Top Gainers: Auto and Capital Goods Shine

1. TVS Motor Company: +4.26%

TVS Motors surged over 4% to close at ₹2,226 following reports of strong export numbers for June and positive commentary on electric vehicle (EV) segment growth.

2. Hindustan Aeronautics Ltd (HAL): +3.80%

HAL bucked the trend among defense stocks, ending higher at ₹5,115. The stock benefited from fresh brokerage upgrades and the announcement of new maintenance contracts with the Indian Air Force.

3. Eicher Motors: +3.45%

Eicher rose to ₹4,320 after reporting a robust performance from its Royal Enfield division. The company posted strong YoY growth in domestic and export sales.

4. Siemens Ltd: +2.97%

Siemens gained nearly 3% as investors continued to bet on the infrastructure and industrial automation theme. Strong order wins and a healthy order book supported sentiment.

5. Marico Ltd: +2.65%

FMCG player Marico moved higher after management commentary suggested green shoots in rural demand. The company also received positive brokerage feedback ahead of its Q1 results.

Sectoral Performance Snapshot

• Gainers: Nifty Auto (+1.28%), Nifty FMCG (+0.86%), Nifty Capital Goods (+0.58%)

• Losers: Nifty PSU Bank (-1.02%), Nifty Defence & Aerospace Index (unofficial) saw broad-based correction

• Flat: Nifty IT and Nifty Realty traded flat-to-negative

Market Commentary

The market reflected a mixed mood with volatility stemming from global macroeconomic cues and upcoming domestic earnings. With US inflation data and Fed commentary expected later this week, traders largely stayed on the sidelines.

“There’s visible churn in the market with investors rotating from overbought sectors like defense to under-owned pockets like FMCG and autos. This is a healthy sign and helps sustain the rally,” said Naveen Kulkarni, Chief Investment Officer, Axis Securities.

Meanwhile, FIIs were net buyers to the tune of ₹412 crore, while DIIs sold stocks worth ₹187 crore, according to provisional NSE data.

Investor Outlook: Time for Stock-Specific Strategy

With earnings season underway, market experts recommend focusing on bottom-up stock picking rather than chasing sectors. The defense correction is not necessarily a reversal of trend but more of a valuation reset, and long-term investors are advised to use dips in quality names to accumulate.

Bharti Airtel may face some pressure in the near term, but analysts believe that the long-term story of 5G monetization and digital expansion remains intact. Conversely, auto and industrials are expected to remain in focus as demand and capex both show resilience.

“Markets are consolidating after a massive run-up. We expect sideways movement in the near term, with stock-specific moves driving returns,” concluded Amol Athawale, VP of Technical Research, Kotak Securities.

July 10 witnessed a classic case of sector rotation with profit-booking in defense and telecom dragging some high-flying stocks lower, even as the broader market held steady. With corporate earnings on the horizon and macro triggers around the corner, investors are advised to maintain a balanced approach, focusing on fundamentals and avoiding speculative bets.