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Indian Market
Weekly Business
Brief
Brief
31 JULY 2026
1
Market Recap
Indian equities posted gains for a third straight session and closed the week higher, coinciding with a decline in Brent crude from above $100 to near $92/barrel amid reports of a pause in US-Iran hostilities. Bajaj Finance and Bajaj Finserv reported Q1 earnings growth, and financial stocks gained during the week, while IT stocks gained around 16–18% for the month. Nifty and Sensex recorded their second straight monthly gain in July. No exchange holiday this week.
Nifty 5024,383.60▲ +2.59%
Sensex78,094.64▲ +2.68%
Bank Nifty57,264.85▲ +1.01%
Why it matters:
- Brent crude declined from a three-month high above $100 to near $92 during the week, a factor market participants associate with India's import bill and inflation outlook. The decline coincided with reports of eased US-Iran tensions.
- Bajaj Finance (+8.32%) and Bajaj Finserv (+6.27%) rose after reporting Q1 profit growth, and financial stocks gained during the week, while IT stocks recorded their best monthly performance in six years. FMCG and consumer durables stocks declined during the same period.
2
Bajaj Finance, Bajaj Finserv Rise After Q1 Results
Bajaj Finance shares rose 8.32% after the company reported consolidated Q1 FY27 profit after tax of ₹6,081 crore, up 28% YoY, with net interest income up 22.9% to ₹12,571 crore, according to company disclosures. Bajaj Finserv shares rose 6.27% after reporting a 12% YoY increase in consolidated profit to ₹3,132 crore. Nifty Financial Services gained 1.31% during the week.
Bajaj Finance PAT₹6,081 Cr▲ +28% YoY
Bajaj Finserv PAT₹3,132 Cr▲ +12% YoY
Why it matters:
- The results were accompanied by gains in the Financial Services sector, which recorded gains alongside the Auto sector during the week, according to sector index data.
- The earnings announcement was one of several NBFC sector results reported during the week, contributing to overall gains in the Financial Services sector.
3
Nifty IT Logs Best Monthly Gain in Six Years on 'Reverse AI Trade'
The Nifty IT index gained roughly 16–18% in July, its strongest monthly performance since 2020, coinciding with the unwinding of the global AI trade, according to market commentary. Gains eased on Friday as TCS (−2.72%), Infosys and Wipro declined amid reports of renewed competitive concerns.
Nifty IT (July)▲ Best month since 2020
Why it matters:
- The sector had recorded declines over the preceding year before the July performance, reflecting the extent to which sector index levels can change over short periods.
- Friday's decline in index heavyweights reflects trading activity during the session. Market participants continue to monitor upcoming IT sector earnings commentary.
4
Brent Crude Declines Below $93 as US-Iran Hostilities Pause
Brent crude declined more than 4% to $92.74/barrel this week, according to exchange data, following reports that the US and Iran paused hostilities. Prices had risen above $100 a week earlier after Houthi strikes on Saudi tankers. Crude remains up roughly 30% for the month of July.
Brent Crude$92.74/bbl▼ Down from >$100 high
Why it matters:
- Crude oil prices are a factor commonly associated with India's import bill, inflation trajectory and currency movements, according to market commentary.
- Houthi-related activity and the Red Sea maritime embargo on Saudi ports remained ongoing developments during the week. Market participants continue to monitor developments in the region.
5
Astra Microwave Hits Record High on ₹2,205 Crore HAL Defence Order
Astra Microwave Products shares rose 14% to a record high after the company announced a ₹2,205.23 crore, five-year order from Hindustan Aeronautics Ltd for the Uttam AESA Radar programme, according to company disclosures.
HAL Order Value₹2,205 Cr
Stock Reaction▲ +14%, record high
Why it matters:
- The order adds to Astra Microwave's order book and was reported in the context of India's indigenous defence manufacturing initiatives.
- The stock has risen over 100% over the past six months, according to exchange data, during a period of increased activity in defence and radar-technology related stocks.
6
FIIs Turn Buyers After Selloff; DII Ownership in Nifty 500 Hits Record 21%
After selling equities worth ₹2.64 lakh crore in 2026, FIIs bought a combined ~₹7,360 crore over three sessions (28–30 July), according to NSE data. Separately, an MOFSL study showed DII ownership of Nifty 500 companies rose to a record 21% in the June 2026 quarter – the ninth straight quarterly increase – as FII ownership slipped to a multi-year low of 17%.
FII Buying (28–30 Jul)₹7,360 Cr
DII Ownership (Nifty 500)▲ 21%, record high
Why it matters:
- The three-day FII buying activity coincided with reported volatility in South Korean technology stocks, according to market commentary. FII activity over the preceding 22 months had reflected net outflows.
- According to the MOFSL study, DII ownership increased across Private Banks, Telecom and IT sectors, while FII ownership declined across the same sectors.
7
Bond Market Update
India's 10-year G-Sec yield was around 6.81%, compared with 6.82% the previous week, according to exchange data. The change coincided with a decline in Brent crude prices and the RBI's FY27 inflation projections.
10-yr G-Sec6.81%▼ −1 bp (wk)
Why it matters:
- The decline in Brent crude from above $100 coincided with the week's yield movement. The RBI's July report projected inflation averaging near 5.1% for FY27.
- Yields remained within Bank of Baroda's projected range of 6.70–6.85% for the month. FPI activity in G-Secs continued during the period, according to available data.
8
Commodities
Gold prices were higher for the week, though the metal declined on Friday, according to market data. Silver prices declined during the week, coinciding with reports of a pause in US-Iran hostilities and gains in global equity markets.
Gold (10g)₹1,44,050▲ +₹1,450
Silver (kg)₹2,18,910▼ −₹2,400
Why it matters:
- Gold's weekly gain was recorded despite Friday's decline. Market commentary attributed movements during the period to a firmer US dollar and elevated Treasury yields.
- Silver's weekly decline coincided with lower oil prices and reports of easing US-Iran tensions during the period, according to market commentary.
9
Currency Update
The Indian Rupee closed the week at ₹95.35 per US dollar, compared with ₹96.40 the previous Friday, according to exchange data. This was the currency's strongest weekly close in about four months, coinciding with lower crude oil prices and reported foreign capital inflows during the period.
USD/INR₹95.35▲ +105 paise (wk)
Why it matters:
- The rupee's weekly movement coincided with the decline in Brent crude from above $100 during the period.
- FII buying activity was reported in the final sessions of July, a period that also saw a change in the currency's multi-week trend, according to market data.
10
Institutional Flows (July 2026 MTD)
FIIs recorded a three-day buying streak into month-end, which reduced the July net outflow to an estimated ₹6,100 crore, compared with over ₹12,000 crore two weeks earlier, according to available data. DIIs remained net buyers during the period, with July MTD inflows estimated at ₹30,100 crore.
FIIs (Jul MTD, est.)−₹6,100 cr
DIIs (Jul MTD, est.)+₹30,100 cr
Why it matters:
- The narrower FII outflow followed end-of-month buying activity, according to available data. Market participants continue to monitor FII activity following several months of net selling.
- DII inflows continued during the period. Domestic ownership of Nifty 500 companies was at a record high, according to the MOFSL study cited above, while FII ownership was at a multi-year low.
Wealth · Research