Auto, financial stocks lead gains; broader markets outperform, volatility eases despite mixed global cues
By Our Business Correspondent
Domestic equity markets extended their winning streak for a third consecutive trading session on Friday, recovering smartly from early losses as investors cheered robust June-quarter earnings from several heavyweight companies, renewed foreign institutional investor (FII) buying, easing crude oil prices and a stronger rupee. Positive global cues, led by a technology-driven rally on Wall Street, also supported sentiment, helping benchmark indices close in the green despite weakness in information technology, FMCG and consumer durable stocks.
The Nifty 50 reclaimed the psychologically important 24,350 level and settled above it, while the BSE Sensex also ended with modest gains after witnessing intraday volatility. Analysts said the resilience displayed by the market despite profit booking in select sectors indicates that investors continue to favour fundamentally strong companies reporting healthy quarterly earnings.
The S&P BSE Sensex advanced 166.49 points, or 0.21 per cent, to close at 78,094.64, while the Nifty 50 gained 66.45 points, or 0.27 per cent, to finish at 24,383.60.
With Friday’s gains, the market completed its third straight positive session, during which the Sensex has climbed 1.73 per cent, while the Nifty has risen 1.66 per cent, reflecting improving investor confidence after recent volatility.
Earnings Drive Recovery
Market participants attributed the day’s recovery primarily to encouraging corporate earnings announced over the past few days. Strong results from financial services companies and select industrial majors helped offset weakness in IT and consumer-oriented sectors.
Among the biggest contributors to Friday’s rally were Bajaj Finance, which surged 8.32 per cent, Mahindra & Mahindra, which gained 3.33 per cent, and Reliance Industries, which added 0.94 per cent. Their combined gains contributed significantly to the benchmark indices’ upward movement.
Analysts said better-than-expected quarterly numbers from several blue-chip companies reassured investors that India’s corporate earnings cycle remains healthy despite global uncertainties and geopolitical tensions.
Broader Markets Outperform
The broader market continued to outperform the benchmark indices, indicating sustained buying interest beyond large-cap stocks.
The BSE MidCap Index rose 0.37 per cent, while the BSE SmallCap Index gained 0.44 per cent, reflecting healthy participation across sectors.
Market breadth remained decisively positive. On the National Stock Exchange, 2,067 stocks advanced, 1,252 declined, while 116 shares remained unchanged, suggesting widespread buying across the market.
The decline in market volatility further highlighted improving investor confidence. The India VIX, often referred to as the market’s fear gauge, fell 3.29 per cent to 11.76, indicating reduced expectations of near-term volatility.
Sectoral Trends
The rally was led primarily by automobile, financial services, and selected industrial stocks, while information technology, FMCG, and consumer durable counters witnessed profit booking.
Auto stocks benefited from expectations of sustained domestic demand and optimism regarding festive season sales, while financial companies gained after several lenders and non-banking finance companies posted robust quarterly earnings.
Technology stocks remained under pressure despite the overnight rally in US technology giants, as investors continued to assess valuation concerns in the domestic IT sector.
Technical Outlook
Market experts observed that the Nifty’s ability to close above the 24,350 level strengthens the near-term technical picture.
According to technical analysts, the index now faces immediate resistance in the 24,367–24,530 zone. A decisive move above this range could open the possibility of further gains in the coming sessions. On the downside, sustained buying at lower levels suggests that investors remain willing to accumulate quality stocks.
FII Buying Returns
Foreign institutional investors were seen returning as buyers after intermittent selling in recent sessions, providing additional support to the market.
The recovery in foreign inflows coincided with a stronger rupee, relatively stable bond yields and improving global risk appetite following encouraging earnings from major US technology companies.
Domestic institutional investors also continued to provide support, cushioning the market against intermittent profit booking.
Currency, Bonds and Commodities
The Indian rupee strengthened marginally against the US dollar during the session.
The partially convertible rupee was quoted around 95.3650 per US dollar, compared with 95.5050 in the previous session, reflecting improved capital inflows and easing pressure on emerging market currencies.
Meanwhile, the yield on India’s benchmark 10-year government bond edged slightly higher to 6.818 per cent, compared with 6.811 per cent in the previous session.
In the precious metals market, MCX Gold futures for August settlement declined 0.91 per cent to ₹1,41,934 per 10 grams, as investors shifted towards riskier assets following the improvement in global market sentiment.
The US Dollar Index (DXY), which measures the greenback against a basket of major currencies, traded 0.22 per cent higher at 100.20.
The US 10-year Treasury yield also moved higher to 4.673 per cent, indicating continued expectations of relatively tight monetary conditions in the United States.
Crude Oil Remains Key Watchpoint
Crude oil prices remained volatile amid continuing geopolitical tensions in West Asia.
Brent crude for September settlement traded around $89.37 per barrel, though prices had witnessed fluctuations during the day.
While lower crude prices generally benefit India’s inflation outlook and current account balance, investors remained cautious after reports of a drone strike targeting gas vessels at Egypt’s Mediterranean port of Damietta.
The incident has heightened concerns over the security of shipping through the Suez Canal, one of the world’s most important energy trade routes, especially against the backdrop of continuing tensions involving the United States and Iran.
Any prolonged disruption in energy supply routes could potentially increase transportation costs and put renewed pressure on global energy prices.
Global Markets Support Sentiment
Global equity markets largely remained positive, helping domestic investors maintain their optimistic outlook.
European markets extended gains following encouraging earnings from major global companies, particularly in the technology sector.
Most Asian markets also ended higher after Wall Street registered strong overnight gains.
South Korea’s equity market staged a sharp rebound after recent heavy selling in artificial intelligence-related stocks, raising hopes that the correction in the technology sector may have largely run its course.
Japanese markets remained stable after the Bank of Japan kept its benchmark interest rate unchanged at 1 per cent. However, the central bank warned that core inflation could exceed its long-term target of 2 per cent.
The policy decision was approved by an 8-1 majority, with one policymaker seeking a further 25-basis-point increase.
Meanwhile, economic data from China painted a more cautious picture. China’s official manufacturing Purchasing Managers’ Index (PMI) unexpectedly slipped to 49.2 in July from 50.3 in June, indicating contraction in factory activity for the first time since February and highlighting continuing weakness in the world’s second-largest economy.
Wall Street Rally Provides Momentum
Investor sentiment across global markets improved significantly after strong quarterly earnings from Microsoft revived confidence in the technology sector.
Wall Street ended sharply higher overnight, with the S&P 500 rising 1.66 per cent, the Nasdaq Composite jumping 2.78 per cent, and the Dow Jones Industrial Average advancing 1.19 per cent.
Microsoft emerged as the biggest contributor to the rally after forecasting stronger-than-expected cloud revenue growth and reporting lower-than-anticipated capital expenditure.
The software giant’s shares surged more than 15 per cent, adding nearly $450 billion to its market capitalisation in a single session.
The company’s reassuring outlook also eased investor concerns regarding heavy artificial intelligence spending by global technology firms.
Corporate Earnings Dominate Stock-Specific Action
Corporate earnings remained the biggest driver of stock-specific movements throughout the trading session.
Bajaj Finserv jumped 6.37 per cent after reporting a 12.31 per cent rise in consolidated net profit to ₹3,132.35 crore for the June quarter. Revenue from operations increased 19.13 per cent year-on-year to ₹42,036.90 crore.
Tata Steel gained 1.64 per cent after reporting an 18.8 per cent increase in consolidated net profit at ₹2,385 crore, while revenue rose 14.3 per cent to ₹60,794 crore.
Aether Industries climbed 4.64 per cent after posting a 33.45 per cent increase in quarterly net profit, supported by higher revenue from contract manufacturing and improved demand in its large-scale manufacturing business.
Defence-related company Astra Microwave Products surged 7.54 per cent after securing an order worth ₹2,205.23 crore from Hindustan Aeronautics Limited for supplying critical systems under the Uttam Radar programme.
Infrastructure company EMS advanced 6.64 per cent after receiving a Letter of Intent from the Delhi Jal Board for a sewerage project valued at approximately ₹158.29 crore.
Profit Booking in Select Stocks
Food delivery platform Swiggy declined 3.76 per cent as investors booked profits following a strong four-session rally. The company had reported a significantly narrower quarterly loss and strong revenue growth a day earlier, but the stock witnessed selling after recent sharp gains.
Data Patterns (India) fell 4.28 per cent after reporting lower quarterly profit despite higher revenue.
Sanghvi Movers dropped 5.52 per cent following a decline in sequential quarterly earnings. Madhav Infra Projects also ended lower after reporting weaker profit numbers.
Relief for 63 Moons
Shares of 63 Moons Technologies jumped 11.76 per cent after the Mumbai MPID Court approved the release of attached assets to facilitate the proposed one-time settlement between National Spot Exchange Limited (NSEL) and specified creditors.
The development marks an important step toward resolving the long-pending claims arising from the 2013 NSEL payment crisis, which involved defaults estimated at around ₹5,600 crore.
IPO Market Remains Active
Primary market activity continued to remain robust.
Manipal Health Enterprises attracted strong investor interest, with the issue subscribed 4.91 times by Friday evening.
MV Electrosystems witnessed overwhelming demand, receiving subscriptions of 11.31 times, reflecting strong appetite for quality public offerings.
However, Juniper Green Energy received a relatively muted response, with subscriptions reaching only 0.46 times by the close of the day.
Outlook
Market participants will closely monitor additional June-quarter earnings, foreign institutional investment flows, crude oil prices, developments in the US-Iran conflict and global macroeconomic data in the coming week.
Analysts believe that sustained earnings growth, improving domestic macroeconomic fundamentals and continued foreign investor participation could provide support to Indian equities, although geopolitical risks, crude oil volatility and global monetary policy developments are likely to keep investors cautious.
If the Nifty manages to decisively cross the 24,530 resistance zone, market experts believe the next leg of the rally could gather momentum.
Disclaimer: This report is based on market data, exchange disclosures, company filings and publicly available information as of the close of trading on 31 July 2026. Equity investments are subject to market risks, and readers should consult qualified financial advisers before making investment decisions.