The domestic equity market closed the week with modest gains, driven by positive corporate earnings and policy actions. Despite concerns over rising geopolitical tensions in the Middle East and a surge in crude oil prices, the Nifty rose by 0.5%, and the Sensex by 0.8%, reversing losses from the previous week. Investor sentiment was cautious following the US Central Command’s recent offensive strikes against Iran on July 12.
Geopolitical tensions led to a significant increase in crude oil prices, with Brent crude surging by 15.91% to reach $88.10 per barrel during the week. Market sentiment, however, found support from robust first-quarter earnings and the Union Cabinet’s approval of major manufacturing initiatives worth nearly Rs 1.9 lakh crore. Blue-chip companies like HCL Technologies, Tech Mahindra, Wipro, Reliance Industries, and Jio Financial Services reported their June quarter results, contributing to market activity.
Technology stocks, particularly TCS and Tech Mahindra, garnered attention with positive quarterly performances. TCS shares rallied post-earnings, while Tech Mahindra reported an 8.2% sequential increase in consolidated net profit. HCL Technologies also impressed investors with a 20.32% year-on-year rise in consolidated net profit for the first quarter of FY27. On the other hand, Dr. Reddy’s Laboratories faced pressure due to delays in commercial supplies of its semaglutide product caused by an API-related quality issue.
Market volatility heightened during the week, reflected in India VIX rising by 7.3%. Investors grappled with geopolitical uncertainties, elevated oil prices, and global interest rate concerns.
