Indian markets demonstrated remarkable resilience this week despite escalating geopolitical tensions over the Strait of Hormuz. According to reports from NDTV Profit, while markets initially shuddered at the prospect of a 20% protection fee that US President Trump wants to impose on the Strait, the recovery was just as quick. Brent crude has climbed back to the $85 per barrel mark, but equity investors have shown remarkable resilience. The situation remains precarious, as things could go horribly wrong if the fight for control over the Strait of Hormuz escalates into violence.
Despite geopolitical tensions impacting Indian financial stocks, the BFSI sector showed remarkable resilience with strong Q1 earnings from major players in banking, insurance, and fintech. As reported by ETBFSI, HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank are all scheduled to declare their Q1 FY27 results on Saturday, with earnings particularly on net interest margins, loan growth and deposit traction expected to set the decisive directional tone for the sector. The week's standout performer was Federal Bank, which surged 6.86% after reporting a 36.58% year-on-year jump in standalone net profit to ₹1,177 crore for Q1 FY27. Other notable performers included Kotak Mahindra Bank gaining 3.57% and ICICI Bank rising 1.84%.
The UAE economy has demonstrated significant resilience amid the geopolitical conflict in the Middle East, according to an International Monetary Fund (IMF) mission that visited Abu Dhabi and Dubai during July 7–16, 2026. As reported by TradeArabia News Service, the IMF mission led by Said Bakhache found that sound fundamentals, ample policy buffers, advanced preparedness, and swift policy response have contained the overall impact of the shock. Robust balance sheets across governments and GREs have helped contain the economic impact, preserve financial stability, and sustain confidence. The banking system remains well-capitalised and liquid, with credit continuing to expand, while fiscal and external balances are expected to remain in surplus, supported by higher oil prices.
The Indian IT sector has delivered encouraging results that have left even the most astute investors confused. According to NDTV Profit, TCS, the largest IT company, has shown double-digit growth in AI revenue for the last three quarters. What is even more heartening is that net employee addition is the highest in 15 quarters for the behemoth. Other players are also ramping up AI visibility even as the AI trade is being questioned from the Kospi to the Nasdaq. The Nifty IT index gained 1.6% on Friday, leading the market recovery.
The week ended on a positive note with the Sensex surging approximately 0.8% to close at 77,778 and Nifty gaining 1.6%, led by gains in IT and banking stocks. According to ETBFSI, Friday's recovery was driven by Tech Mahindra reporting stronger-than-expected quarterly revenue, Federal Bank surging 6% on better-than-expected Q1 results and Jio Financial Services gaining 3.84% on quarterly profit. The Bank Nifty recovered to 57,757.85, up 0.51% on Wednesday, while Thursday saw the Nifty slipping 5.75 points to close at 24,072.75 as realty, banking and financial services stocks weighed. Market breadth remained decisively negative with 1,422 stocks advancing against 2,632 declining throughout the week.
