01 August,2026 03:43 PM IST | Mumbai | mid-day online correspondent
Representational Image. File pic.
The Indian domestic equity benchmark indices advanced during the past week amid easing of crude oil prices, foreign institutional investors buying and a strengthening rupee, even as global macroeconomic factors continued to influence investors decision.
"In the last week, the benchmark indices bounced back sharply. The Nifty ended 2.6 per cent higher, while the Sensex was up by 2035 points. Among sectors, almost all major sectoral indices registered positive momentum, but the IT and Auto indices outperformed, with IT rising by 6.60 per cent and Auto by 5.60 per cent," Amol Athawale, VP Technical Research, Kotak Securities said.
The 30-share BSE Sensex gained 2.68 per cent during the week to settle at 78,094.64, while the 50-share NSE Nifty jumped 2.59 per cent during the week and ended at 24,383 on Friday. During the week ended July 24, the Sensex had lost 2,091 points or 2.68 per cent while, the Nifty had shed 566.85 points or 2.33 per cent.
"Unlike last week, a sharp decline in crude prices helped alleviate inflationary concerns and improved market sentiment. While the US Fed's decision to keep interest rates unchanged was largely in line with expectations, its commentary retained a hawkish bias, indicating a willingness to maintain restrictive policy settings if inflation fails to move sustainably toward its target. Meanwhile, the unwinding of the crowded global AI trade during the week strengthened the case for foreign inflows into India's diversified equity market, helping the rupee firm up," said Vinod Nair, Head of Research, Geojit Investments said.
He noted that a strong IIP data, improving monsoon conditions, and encouraging corporate earnings boosted the domestic investor sentiment.
"Consequently, the market recovery was broad-based, with large-cap stocks outperforming the broader market. Although domestic tech stocks faced late-week pressure from a rebound in global chipmakers, they still ended the week with strong gains supported by attractive valuations," Nair added.
On Tuesday, the Indian equity benchmark indices slipped tracking the Asian markets that declined on heavy selling of chipmaking stocks.
"Looking ahead, the sustainability of the domestic market recovery will depend on the easing of global uncertainties, stability in crude oil prices, and a broadening of earnings growth beyond a handful of sectors. Investors will closely track US labour market data in the coming week, while domestically, the RBI's policy decision and PMI releases will provide key cues on growth and inflation trends. We continue to favour a gradual accumulation of quality companies with strong earnings visibility," Nair said.
According to PTI, the rupee settled at 95.43 against the US dollar on Friday tracking sustained foreign capital inflows and support from the Reserve Bank. Foreign Institutional Investors purchased equities worth Rs 277.48 crore on a net basis on Friday, as per the news agency, which stated that Brent crude futures, the global oil benchmark, were trading up 0.42 per cent at USD 89.40 per barrel. The oil prices had declined sharply during the week after US and Iran had paused their military action but continued to rise slowly once the geopolitical tensions escalated.
"Indian equities are expected to trade with a positive bias as healthy domestic macros, and a strong Q1FY27 earnings season continue to support investor confidence," Siddhartha Khemka Head of Research, Wealth Management, Motilal Oswal Financial Services said.
"Primary market activity is expected to remain robust, with Manipal Health Enterprises, Juniper Green Energy and MV Electrosystems scheduled to debut in the coming week. The combined issue size of approximately Rs 11,365 crore is expected to keep investor interest in the primary market elevated," he added.
(With inputs from PTI)
