Indian stock markets traded largely flat on Tuesday (July 28, 2026) after paring early gains, following the previous session's rebound driven by a sharp fall in crude oil prices. At 12 noon, Sensex was up 43.52 points or 0.06% to 76,879.30, and Nifty 50 inched up 9.05 points or 0.04% to 24,005. The markets had ended a five-day losing streak on Monday (July 27, 2026), with the 30-share BSE Sensex jumping 776.01 points, or 1.02%, to settle at 76,835.78 and the 50-share NSE Nifty surging 228.50 points, or 0.96%, to close at 23,995.95. However, by the end of Tuesday's session, Sensex closed at 76,766, down 70 points or 0.09%, while Nifty ended at 23,985, down 11 points or 0.04%. The total market capitalisation of BSE-listed firms declined by ₹1.6 trillion to end the session at ₹479 trillion. During the day, the Sensex soared as high as 841.74 points, or 1.10%, to 76,901.51, demonstrating strong intraday momentum. According to reports from PTI, the positive momentum was driven by a significant drop in crude oil prices amid easing geopolitical concerns in West Asia. The market rally was further supported by strong buying in IT stocks, which provided additional momentum to the broader market indices.
IT stocks emerged as the primary driver of market gains, with the Nifty IT index surging 3.32% and extending gains from the previous session. The sector's relatively limited exposure to artificial intelligence (AI) insulated it from a broader global sell-off, with over the last three sessions, the Nifty IT index has gained 6.6% after Jefferies upgraded the sector from underweight to neutral. Analysts said the reversal of the AI trade could drive tactical upside in the sector, particularly after this year's sharp decline. On a year-to-date basis, the Nifty IT index has declined by 20%. From the Sensex pack, Eternal emerged as the top gainer, jumping 5.57% to ₹295.60 from its previous close at ₹280.00, followed by InterGlobe Aviation, which added 4.53% to ₹5,211.00 against ₹4,985.00. Infosys rose 3.73% to ₹1,079.70 from ₹1,040.90, while Bajaj Finance advanced 3.15% to ₹1,044.70 from ₹1,012.80. Asian Paints increased 2.79% to ₹2,711.40 from ₹2,637.90. However, ONGC slumped 2.94% to ₹241.44 from ₹248.76, taking the maximum hit from tumbling crude prices, followed by SBI Life dipping 0.83% to ₹1,843.10.
Brent crude fell 1.7% to about $84.56 a barrel, declining 10% over the last three sessions after the pause in military action between the United States and Iran reduced fears of an immediate disruption to global energy supplies. Brent crude futures had settled at $98.70 per barrel on Friday, gaining $2.02 or 2.09%. On the MCX, crude oil futures were trading at ₹79,051.50 per tonne as of 12:27 pm, up 897 points or 1.14% on the day. According to Vinod Nair, Head of Research at Geojit Investments Limited, as reported by PTI, "A pause in strikes in West Asia has eased concerns over rising import costs and inflation, triggering a relief rally in markets. The sharp correction in crude oil prices, along with a decline in long-term bond yields, has also raised hopes of a durable resolution, supported by signs of long unwinding." The lower crude oil prices provided significant relief to the Indian markets, which are sensitive to energy price movements due to their impact on inflation and economic growth prospects.
Market breadth was strongly negative with 2,740 stocks declining and 1,528 advancing, as more than a third of Sensex stocks declined. Hindustan Unilever fell 7%, making it the biggest loser in the Sensex pack and the biggest drag on the index. The BSE SmallCap Select index jumped 1.21%, followed by gains in the Nifty Microcap 250 at 1.19% and Nifty Smallcap 100 at 1.18%. The Nifty Midcap 100 rose 0.98%, while the Nifty 50 gained 0.82%. The Nifty 200 and Nifty 100 rose 0.88% and 0.84% respectively. Broader markets outperformed their headline benchmarks as smaller stocks rallied faster. All sectoral indices traded in green, with the Nifty IT index jumping the most by 2.48%, followed by gains in the Nifty Realty at 0.88% and Nifty Media at 1.76%. Oil-linked sectors underperformed with the Nifty Oil & Gas rising just 0.06%, Nifty Energy at 0.10%, and Nifty Private Bank at 0.25%. According to Religare Broking Ltd, "Investor sentiment improved after crude oil prices declined sharply following reports of a temporary easing in geopolitical tensions in the Middle East. The positive undertone was further supported by encouraging quarterly earnings from select companies across sectors, while renewed buying in IT stocks added momentum to the recovery."
Asian markets weakened sharply after a global semiconductor selloff, with South Korea's KOSPI dropping 500.47 points, or 7.41%, to 6,253.81, prompting the activation of "sidecar" trading curbs on both the KOSPI and the junior Kosdaq index. Japan's Nikkei was down 3.59% at 62,599.14 as of 0034 GMT, while the broader Topix was lower 2.44% at 3,966.87. The sector-wide selloff followed several developments that renewed doubts about the sustainability of the AI-driven semiconductor rally. Memory-chip maker SK Hynix sank 10% after its American depositary receipts (ADRs) fell to a record low in New York and dropped below their initial U.S. offering price. Samsung Electronics, another major index constituent, fell 9.15%. According to HDFC Securities, markets in Europe were trading higher and US markets ended mostly higher, though S&P 500 futures have extended losses in Asian trading as investors positioned for a heavy week of mega-cap earnings and the Fed's rate decision. The contrasting performance in Asian markets highlighted the divergent sentiment across different regional markets, with Indian markets benefiting from the positive crude oil price movement despite broader regional weakness.
