Markets Extend Winning Streak; Nifty Ends Above 24,600 on Earnings Optimism, PSU Banks and Reliance Lead Rally
BY Our Business Correspondent
Indian equity markets extended their winning momentum for the second consecutive trading session on Thursday, with benchmark indices ending in positive territory despite a highly volatile trading day. Investor sentiment remained buoyant amid expectations of a diplomatic breakthrough in the Middle East, encouraging domestic corporate earnings for the June quarter, and sustained buying interest in heavyweight banking and energy stocks.
The rally was spearheaded by robust gains in public sector banks and oil & gas counters, with Reliance Industries and State Bank of India emerging as the biggest contributors to the benchmark indices. However, weakness in metal, information technology and automobile shares restricted the overall upside, while the broader market remained subdued, indicating selective institutional buying rather than broad-based participation.
The S&P BSE Sensex climbed 373.76 points, or 0.48 per cent, to settle at 78,954.76, while the Nifty 50 ended 11.35 points higher at 24,636, comfortably holding above the psychologically significant 24,600 level. Over the past two sessions, the Sensex has advanced 1.33 per cent, while the Nifty has gained 1.29 per cent, reflecting renewed investor confidence after recent bouts of volatility.
Selective Buying Supports Benchmarks
Thursday’s session was characterised by sharp intraday swings as investors reacted simultaneously to global developments, earnings announcements and sector-specific cues. Strong buying in index heavyweights helped offset losses in several cyclical sectors.
Reliance Industries surged 3.52 per cent, making the single largest contribution to the Nifty’s gains. State Bank of India advanced 2.84 per cent, reflecting renewed optimism in the banking segment, while ICICI Bank added 0.51 per cent, further strengthening financial stocks.
Market participants noted that heavyweight buying continues to provide stability to benchmark indices even as broader market participation remains relatively weak.
The divergence between benchmark indices and broader markets was clearly visible during the session. The BSE MidCap 150 Index edged up just 0.01 per cent, while the BSE SmallCap 250 Index gained 0.25 per cent, significantly underperforming the frontline indices.
Market breadth also reflected caution among investors. On the Bombay Stock Exchange, 2,100 stocks advanced, 2,191 declined, while 209 shares remained unchanged, suggesting that gains were concentrated in select large-cap counters.
Earnings Season Continues to Drive Sentiment
The ongoing June quarter earnings season remained one of the biggest drivers of market sentiment. A number of companies across sectors announced stronger-than-expected financial results, reinforcing expectations that corporate India continues to demonstrate resilience despite global economic uncertainties.
Market analysts observed that earnings growth has generally exceeded expectations in several manufacturing, pharmaceutical and specialty chemical companies, encouraging investors to selectively accumulate fundamentally strong stocks.
The optimism surrounding quarterly earnings also offset concerns arising from global geopolitical tensions and elevated crude oil prices.
PSU Banks Remain in Focus
Public sector banking stocks continued their recent outperformance amid expectations of healthy credit growth, improving asset quality and stable net interest margins.
The strong rally in State Bank of India reflected sustained investor confidence in the country’s largest lender. Banking shares also benefited from expectations that credit demand will remain robust during the current financial year despite global economic headwinds.
Financial stocks have increasingly become the preferred investment destination for institutional investors seeking stability amid uncertain global conditions.
Energy Stocks Gain on Crude Outlook
Oil and gas shares witnessed healthy buying as investors assessed developments surrounding the Strait of Hormuz and ongoing diplomatic efforts involving the United States and Iran.
Although international crude oil prices remained elevated, optimism that shipping disruptions could ease supported energy stocks globally.
Reliance Industries, with its diversified energy and petrochemical operations, remained among the strongest performers in Thursday’s session.
Technical Outlook
Market experts believe the Nifty continues to display resilience after successfully defending important support levels during recent sessions.
Technically, the 24,500-24,450 zone is expected to act as immediate support for the benchmark index. Sustaining above these levels could encourage further buying interest in coming sessions, while a decisive move above recent highs may open the possibility of fresh upward momentum.
Analysts also caution that continued volatility cannot be ruled out, especially ahead of key global macroeconomic developments and the remaining corporate earnings announcements.
Global Markets Offer Support
International market sentiment remained largely constructive throughout Thursday as hopes of easing geopolitical tensions in West Asia improved investor confidence.
European equities traded firmly higher amid growing optimism regarding the possible reopening of the Strait of Hormuz, one of the world’s most strategically important oil shipping routes.
Media reports suggested that negotiations facilitated by Oman could lead to a proposed agreement granting Iran greater oversight of vessels entering the Gulf through the Strait of Hormuz, potentially helping end the five-month conflict involving the United States and Iran.
Although no formal agreement has yet been announced, hopes of diplomatic progress significantly improved risk appetite across global financial markets.
Asian markets, however, delivered a mixed performance. Investors booked profits after the previous session’s technology-led rally while monitoring developments in artificial intelligence-related stocks and geopolitical negotiations.
Oil prices traded within a narrow range as traders evaluated the potential impact of any future peace agreement on global energy supplies.
Wall Street Sends Mixed Signals
Overnight, the Dow Jones Industrial Average closed at another record high as optimism surrounding US-Iran negotiations boosted investor sentiment.
The Dow gained 263.18 points, or 0.49 per cent, to finish at 54,349.06.
However, technology shares witnessed profit booking following earnings announcements from leading artificial intelligence companies.
The S&P 500 declined 0.17 per cent to close at 7,723.52, while the Nasdaq Composite dropped 0.83 per cent to 26,363.44, snapping its five-session winning streak.
Dow Jones futures were trading 141 points higher during Indian market hours on Thursday, indicating a positive opening for US markets later in the day.
AI Spending Under Investor Scrutiny
Artificial intelligence remained one of the key themes influencing global technology stocks.
SpaceX reported nearly double the revenue and significantly reduced operating losses in its first earnings report since listing, driven largely by rapid expansion of its Starlink communications network and AI-related businesses. Nevertheless, investors questioned whether the company’s elevated AI investments would generate sufficient future returns, leading to a sharp decline in its share price.
Similarly, Advanced Micro Devices (AMD) projected stronger quarterly revenues supported by robust demand for AI chips. Despite the encouraging outlook, the stock fell as investors sought clearer evidence that heavy AI spending would translate into faster earnings growth.
Commodity and Currency Markets
Global commodity markets remained active as geopolitical developments continued to influence investor behaviour.
Brent crude oil for October 2026 settlement rose 64 cents, or 0.81 per cent, to $80.09 per barrel, supported by uncertainty surrounding Middle East supply dynamics.
In precious metals, MCX Gold futures for December settlement climbed 0.80 per cent to Rs 1,50,980 per 10 grams, reflecting continued safe-haven demand.
The US Dollar Index (DXY) strengthened marginally by 0.10 per cent to 99.64, while the US 10-year Treasury yield rose to 4.629 per cent, indicating expectations of higher interest rates in global markets.
In the domestic debt market, the yield on India’s benchmark 10-year government security remained unchanged at 6.772 per cent, suggesting stability in bond markets.
The Indian rupee traded with a marginal positive bias against the US dollar during the session, hovering around 95.2450, although currency movements remained limited amid global uncertainty.
IPO Market Remains Active
Primary market activity continued to attract investor attention.
The Ardee Industries initial public offering received an enthusiastic response from investors. By the close of bidding on Thursday, the issue had attracted bids for 82.72 crore shares against an offer size of 5.84 crore shares, translating into an overall subscription of 14.16 times. The IPO, priced in the range of Rs 50-53 per share, closes on August 7.
Meanwhile, newly listed companies delivered impressive debut performances.
MV Electrosystems ended its first trading session at Rs 622.75, representing a premium of 46.53 per cent over its issue price of Rs 425. The stock had debuted at Rs 519 before extending gains throughout the session.
Juniper Green Energy also finished strongly at Rs 259.60, up 15.38 per cent over its issue price of Rs 225, reflecting healthy investor interest in renewable energy companies.
Earnings Continue to Drive Stock-Specific Action
Corporate earnings remained the dominant catalyst for individual stock movements.
Navin Fluorine International emerged among the biggest gainers after reporting a more than 107 per cent jump in quarterly profit, driven by strong growth across all major business segments.
GMM Pfaudler rallied sharply after posting 118 per cent year-on-year growth in net profit, while Neuland Laboratories surged following an exceptional rise in earnings supported by robust revenue expansion and significantly improved operating margins.
Kolte-Patil Developers witnessed strong buying after announcing six major redevelopment projects across the Mumbai Metropolitan Region with an estimated gross development value of approximately Rs 6,000 crore.
Biocon also advanced after reporting a more than three-fold increase in quarterly net profit, reflecting operational improvements.
Among other gainers, Garware Technical Fibres reported healthy double-digit growth in revenue and profitability, supporting investor confidence.
On the downside, Sayaji Hotels declined after reporting a steep fall in quarterly profits despite stable operations. Bharti Hexacom also slipped despite posting healthy revenue and profit growth, as investors appeared to book profits following recent gains.
Cummins India ended marginally lower after reporting largely stable quarterly earnings, while Whirlpool of India gained modestly despite a decline in net profit, supported by double-digit revenue growth.
Outlook
Market participants are expected to closely monitor the remaining June-quarter earnings announcements, developments in the Middle East, global crude oil prices and foreign institutional investment flows over the coming sessions.
Analysts believe sustained corporate earnings growth and improving global risk sentiment could continue supporting Indian equities. However, they caution that elevated geopolitical risks, volatile commodity prices and global interest rate expectations may keep markets sensitive to news flow.
For now, the Nifty’s ability to maintain levels above 24,600 and defend the immediate support zone of 24,500-24,450 will remain the key technical indicator for determining the market’s near-term direction.
Disclaimer: Stock market investments are subject to market risks. Please consult with a certified financial advisor before making any investment decisions.