Indian equity markets ended the week on a strong note, with NIFTY50 rising 1.1% to close at 24,334 on Friday, driven by strong June-quarter earnings from index heavyweights across IT and Financials sectors. According to latest reports, Friday's rally was led by several large-cap and IT stocks, with Tech Mahindra, Kotak Mahindra Bank, TCS, Reliance Industries, ICICI Bank, Hindustan Unilever, Mahindra & Mahindra, Axis Bank, Bajaj Finance, HDFC Bank, and Infosys advancing 1-4%. In contrast, Sun Pharma, Trent, Bharti Airtel, and UltraTech Cement slipped around 1% each. The index closed comfortably above its 50-day average of 23,833, with Friday's high of 24,367 now the level to beat. However, NIFTY50 faces key resistance around 24,400–24,530, which has capped recent advances and coincides with the upper half of the rising channel. As per Univest analysis, a close above the 24,099 support level would suggest Friday's move was genuine, while losing this level would indicate it was a pre-results rally.
The rally remained concentrated in largecap stocks, with Nifty Midcap 150 declining 0.8% and Nifty Smallcap 250 slipping 0.6% during the week. As reported by Upstox News Desk, the Nifty IT index emerged as the strongest sector, gaining 4.3% following better-than-expected earnings from major technology companies. Consumer Durables rose 3% and Private Bank advanced 1.5%. Capital Markets was the biggest laggard, falling nearly 3%, while Real-Estate and Metals declined around 2% each. Market breadth improved with 64% of NIFTY50 stocks trading above their 50-day moving average, moving steadily higher from below 50% in late June. The shift away from pharma and into cyclical sectors reinforces the sense that investors are positioning for a strong earnings season rather than hedging against fresh trouble.
Foreign investors turned net buyers on Friday, purchasing shares worth ₹218 crore after being net sellers in July, according to latest Economic Times reports. In contrast, domestic institutional investors maintained strong support with net purchases of ₹504 crore on Friday. The weaker rupee, firm crude oil prices and uncertain global cues also kept volatility elevated during the week. The Indian rupee posted its sharpest weekly decline since May, settling at 96.28 against the greenback, with the broader bias remaining weak given elevated crude prices and cautious FII flows. India VIX, a measure of market fear, fell 2.08% to settle at 13.15 levels, indicating reduced market fear and supporting the positive sentiment.
Major quarterly earnings from key companies are expected to drive market sentiment this week, with 256 companies set to announce their Q1 results. As reported by Business Standard, Reliance Industries reported record quarterly core profit and EBITDA for the June quarter, powered by strong performances across its oil-to-chemicals and telecom businesses. HDFC Bank recorded a 5% increase in standalone profit to ₹19,060 crore for the June quarter, while ICICI Bank posted a 13.88% jump in consolidated profit at ₹15,440 crore. Kotak Mahindra Bank logged a 22.55% rise in consolidated net profit to ₹5,480.46 crore and Axis Bank recorded a 22.23% jump in consolidated net profit at ₹7,632.31 crore for the June quarter. The weekend brings additional catalysts with five major banks reporting results on Saturday - HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, and Yes Bank - while Reliance Industries announced its Q1 FY27 results Friday night. Key companies on the upcoming earnings calendar include Paytm, Bajaj Auto, TVS Motor, Adani Power, BPCL, Eternal, IndusInd Bank, HPCL, UltraTech Cement, Infosys, and Bank of Baroda.
Analysts expect Indian equities to witness a gradual uptrend next week, driven by the strong Q1 earnings season that is likely to remain the key driver of sectoral and stock-specific performance. As reported by Economic Times, in the near term, the index is likely to remain strong, with the potential to advance towards the 24,800 level. On the downside, immediate support is placed at 24,200, with a decisive fall below this level potentially triggering a phase of consolidation. Key support levels remain at 24,000–24,070 with 23,818 as positional support, while a decisive break below 23,818 would weaken the higher-low structure. On the upside, a sustained close above 24,530 would strengthen the breakout and open the way towards 24,700–24,800. The technical setup suggests a firm bias with potential upside toward 24,800 if buyers defend 24,200 on the downside. Univest analysts note that Friday's breakout above 24,260 gives a constructive starting point, while cautioning that a true breakout needs a second day of buying, not just one strong Friday session.
