Indian stock markets extended gains on Friday, with Sensex rising 262 points to close at 77,764 and Nifty 50 gaining more than 95 points to end above 24,270. The upward momentum was driven by easing tensions in the Middle East, reduced expectations of US Federal Reserve rate hikes, and positive domestic factors like the India-Japan Summit and IT sector recovery. According to ETMarkets, the sharp gains added nearly ₹44,155 crore to the total market capitalisation of all companies listed on the BSE, taking it to ₹480 lakh crore. The rally was supported by softening crude oil prices, which remain a key macro tailwind supporting inflation outlook, external balances, and overall economic stability.
Defence stocks are expected to remain in focus following significant government approvals. According to reports from Upstox, the Defence Acquisition Council (DAC) accorded Acceptance of Necessity (AoN) for capital acquisition proposals worth ₹52,000 crore. The approvals cover indigenous systems including anti-drone electronic warfare, surface-to-air missiles, anti-tank guided missiles, kamikaze drones, naval unmanned aerial systems and high-altitude surveillance platforms. While the AoN represents only in-principle approval and not contract award, it signals a robust future order pipeline for companies across missiles, defence electronics, drones and electronic warfare sectors.
HDFC Bank shares will be in focus after India's leading private sector lender reported strong Q1 FY27 business updates. As reported by Upstox, the bank posted significant growth across key metrics. Gross advances increased 15.4% to ₹30.61 lakh crore as of June 2026, compared to ₹26.53 lakh crore last year. The lender's period-end deposits grew 14.7% to ₹31.7 lakh crore, while CASA deposits rose 9.4% to ₹10.25 lakh crore. The bank's physical store count stood at 324 at the end of June.
Leading FMCG companies have expressed optimism on consumption trends and growth prospects for FY27, with companies like Dabur India, Godrej Consumer Products Ltd (GCPL) and Marico reporting strong business momentum in Q1. Marico expects consolidated revenue growth in the early twenties, while GCPL anticipates high-teens growth. Dabur also expects double-digit growth in consolidated revenue and profit after tax for Q1 FY27. According to Business Standard, demand conditions remained resilient, supported by steady economic activity, with easing commodity prices expected to recover margins progressively in the coming quarters. The markers indicated broad-based growth across domestic and international markets, supported by resilient consumer demand, improving rural sentiment and continued strength in emerging channels.
Market analysts remain optimistic about the technical outlook, with Nifty registering a consolidation breakout on the daily chart, indicating improving market sentiment. As reported by LKP Securities, the index continues to sustain above the crucial 50-day EMA, reinforcing the positive short-term trend. The RSI has witnessed a bullish crossover, adding further strength to the momentum. Looking ahead, Nifty appears well-positioned to advance towards 24,500 and potentially higher, with immediate support placed at 24,200, followed by the stronger support zone around 24,000. Market experts suggest that markets are likely to maintain a buy-on-dips approach, with earnings quality and global developments, including progress on the US–India FTA, remaining key monitorables.
