The Indian equity markets witnessed a strong recovery with the Nifty 50 index gaining 228.50 points or 0.96% to 23,995.95 as of latest trading, ending its five-session losing streak. The BSE Sensex advanced 776.01 points to 76,835.78, showing broad-based strength across sectors. Market breadth improved significantly with all 16 sectoral indices finishing in the green as easing geopolitical tensions in the Middle East triggered a sharp decline in crude oil prices. The India VIX volatility index tumbled 9.8% to 12.66, signalling a meaningful cooling in market volatility. However, GIFT Nifty indicates a largely flat opening for today's session, suggesting a cautious start amid mixed global cues. The recovery was supported by domestic institutional investors buying ₹2,329 crore against foreign institutional investor selling, confirming that domestic capital is defending a structural thesis rather than chasing a bounce.
Technology and media stocks led the sectoral rally with the Nifty IT rising nearly 3% and the Nifty Media gaining 2.4%, making them the top performers among sectoral indices. The Nifty Realty and Nifty Auto were up around 2% each, while the Nifty FMCG and Nifty Pharma were up over 1% in the current session. Among individual stocks, Eternal continued as the top gainer in the Nifty 50, rising over 5%, followed by InterGlobe Aviation at 4.5%, Asian Paints at 3%, and Infosys at 2.8%. Information technology majors Tech Mahindra, HCL Technologies, Wipro, and Tata Consultancy Services were up 1.9-3.6%. Automobile stocks Mahindra & Mahindra, Eicher Motors, Maruti Suzuki India, and Tata Motors Passenger Vehicles gained 1.1-2.5%. ONGC remained the top drag in both the Nifty 50 and Nifty 200 indices, down nearly 3% amid easing oil prices, while Zen Technologies shed the most in the Nifty 500, down over 4%.
Several companies reported strong quarterly results for Q1 FY27, driving sectoral performance. Dr Lal PathLabs emerged as a standout performer, reporting a consolidated net profit of ₹1.70 billion for the June quarter, up 28% year-on-year with revenue rising over 19% to ₹7.98 billion. The stock hit a 4-year high, trading 5.4% higher at ₹1,853.90 with over 1 million shares changing hands on the NSE. IDFC First Bank surged nearly 10% to an over 2-year high of ₹88.76 after reporting net profit more than tripling quarter-on-quarter and doubling year-on-year. AU Small Finance Bank rose nearly 6% to ₹1,062 after reporting over 37% jump in net profit at ₹7.96 billion for the June quarter. Tata Consumer Products reported net profit up nearly 28% to ₹4.27 billion with revenue increasing 12% to around ₹54 billion. Shriram Finance maintained strong performance with net profit jumping 60% year-on-year to ₹34.45 billion for Q1 FY27, driven by robust growth in assets under management.
Global markets faced significant pressure with Japan's Nikkei 225 dropping 3.91% or 2,538.19 points to 62,393, hitting a two-month low led by a deep selloff in semiconductor and AI-related stocks. Major chipmakers including Kioxia, Tokyo Electron, and Advantest saw sharp declines as cautious investors reassessed valuations ahead of major technology earnings. South Korea's Samsung Electronics fell more than 12% and Kioxia dropped 18%, while TSMC slid 3.0% despite reporting a 77% profit surge, reflecting broader valuation concerns. The selloff was triggered by reports that China is using DUV etching machines to advance chip production, unsettling investors who had assumed the country faced tighter constraints due to bans on Dutch firm ASML's advanced EUV equipment. Crude oil prices have retreated to around $82 a barrel, its lowest level in a week, after the US paused strikes on Iran and both sides resumed diplomatic talks, reversing last week's rally above $100. This development remains a significant macro tailwind for Indian equities as crude cost deflation lifts FMCG and agri-business margins while easing concerns over India's import bill.
