The broader markets mirrored the benchmark indices, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices rising more than 2 percent to snap a two-week losing streak. The rally was underpinned by better-than-expected June-quarter earnings, easing global uncertainties, a sharp correction in crude oil prices, improving monsoon progress, stronger-than-expected IIP data, and the return of foreign institutional investors (FIIs) as net buyers.
For the week, the BSE Sensex surged 2,034.87 points (2.67 percent) to close at 78,094.64, while the Nifty 50 rallied 616.15 points (2.59 percent) to settle at 24,383.60.
The Nifty Midcap 100 index gained 2 percent, inching closer to its record high of 63,183.35. Coforge, Laurus Labs, Swiggy, Container Corporation of India, and Ashok Leyland led the gains, rising more than 10 percent during the week. On the downside, Suzlon Energy, Phoenix Mills, Billionbrains Garage Ventures, Bank of India, and LIC Housing Finance were among the top losers.
The Nifty Smallcap 100 index climbed 2.6 percent, moving closer to its 52-week high of 19,470.50. Redington, Kaynes Technology India, Firstsource Solutions, Brigade Enterprises, Affle 3i, IIFL Finance, KFin Technologies, and IFCI rallied by up to 24 percent, while Nuvama Wealth Management, Data Patterns (India), Great Eastern Shipping Company, and City Union Bank ended the week among the key laggards.
Sectoral performance was broadly positive during the week, with Nifty IT emerging as the top performer, rallying 6.75%, recording bets weekly gains since December 2023. It was followed by Nifty Media (5.97%), Nifty Auto (5.61%), Nifty Pharma (3.86%), Nifty Healthcare (3.20%), and Nifty Consumer Durables (2.89%). However, Nifty Defence and Nifty Energy bucked the trend, ending the week marginally lower.
Foreign Institutional Investors (FIIs) snapped their two-week selling streak by purchasing equities worth ₹5,949.96 crore during the week. Meanwhile, Domestic Institutional Investors (DIIs) continued to lend support to the market, although at a slower pace, investing ₹5,387.66 crore in equities.
The total market capitalisation of BSE-listed companies increased by more than ₹10 lakh crore during the week.
Where is market headed?
Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services
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. Market participants will closely monitor RBI's monetary policy decision, India's Manufacturing and Services Purchasing Managers' Index (PMI) data, along with developments in crude oil prices and geopolitical tensions in West Asia next week. The ongoing Q1FY27 earnings season is expected to continue driving stock-specific action.
Ajit Mishra – SVP, Research, Religare Broking
Technically, the Nifty has further strengthened its bullish structure by surpassing the crucial hurdle of the 200-day EMA around the 24,370 mark. The index now appears well-positioned to inch towards the 24,600 level, which coincides with the previous swing high, and a decisive breakout above this zone could open the door for a move towards the 24,800-25,000 mark.
On the downside, the 24,270 level is expected to act as immediate support, followed by the 24,150-24,050 level as the key support zone. As long as the index holds above this level, the "buy-on-dips" strategy is likely to remain favourable. We reiterate our preference for relatively stronger stocks in auto and pharma, while selectively identifying opportunities across other sectors.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
Nifty is currently placed at the important cluster resistance round 24350-24400 levels (previous opening down gap of 8th July, previous swing high of 17th July and 200-day EMA). Hence, there is a possibility of consolidation movement or minor dip around the resistance before showing decisive breakout.
The underlying trend of Nifty continues to be positive. A sustainable upside above 24400 could pull Nifty towards 24600-24700 levels in a quick period of time. Immediate support is placed at 24200.