Markets post biggest monthly gains since April; RIL, Asian Paints stocks up

The Nifty Smallcap 100 index rose 4%, following a 15% fall in the previous two months

Benchmark indices gained more than six per cent in July, their biggest monthly advance in three months. It was also the fourth straight monthly gain for Sensex. However, in the preceding two months, the 30-share blue chip index had gained less than a per cent. The mid- and small-cap indices managed to recover some lost ground. The Nifty Smallcap 100 index rose four per cent, following a 15 per cent fall in the previous two months. The Nifty Midcap 100 index, which was down 11 per cent between May and June, rose 3.8 per cent. The latest upward movement in the market comes amid positive earnings surprise in the June quarter and hopes of structural improvement in earnings growth. The Sensex on Tuesday gained for a eight straight day—its longest winning streak in April when it had added 1,375 points after nine consecutive trading sessions of gains. In the past eight sessions, the Sensex has gained 1,255 points, or 3.5 per cent. Both foreign portfolio investors (FPIs) and mutual funds (MFs) have been net buyers this month.