Market Wrap

Oil Volatility Lifts Bond Yields; Equities Extend Gains, Rupee Steady

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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Auto shares rally

By Tresha Dias

July 30, 2026 at 12:40 PM IST

Indian equity benchmarks edged higher on Thursday as strong quarterly earnings from automobile companies supported gains, although uncertainty over the US interest-rate outlook and higher crude oil prices capped the market's upside. The Sensex rose 273.55 points or 0.35% to 77,928.15, while the Nifty50 gained 66.95 points or 0.28% to 24,317.15.

Investor sentiment remained cautious after the US Federal Reserve kept interest rates unchanged, with three members of the rate-setting committee dissenting from the decision. Asian markets traded subdued following the Fed outcome, while investors continued to monitor geopolitical developments in West Asia.

Auto stocks led sectoral gains, with the Nifty Auto index rising 1.6% after upbeat June-quarter earnings. Mahindra & Mahindra gained about 2%, while Balkrishna Industries surged 10.8% after reporting strong quarterly results. Coal India and Eicher Motors were also among the top Nifty gainers. In contrast, the Nifty Realty index fell 2%, making it the day's worst-performing sector. Broader markets underperformed, with the Nifty MidCap and Nifty SmallCap indices declining 0.35% and 0.56%, respectively.

The Indian rupee ended nearly unchanged at 95.68 per US dollar, as pressure from elevated crude oil prices and corporate dollar demand was offset by likely Reserve Bank of India intervention, which helped keep the currency below the psychologically important 96 level.

Government bonds remained under pressure as Brent crude climbed back towards $90 per barrel, reviving concerns over imported inflation. The benchmark 6.94%, 2036 bond yield rose to 6.8189% intraday and ended at 6.8132%, up from 6.7964% at previous close. Dealers said foreign portfolio investors continued trimming their holdings for a third consecutive session, adding to the cautious tone in the bond market.

Top Movers of the Day

Tata Motors gained 1.55% to close at ₹334.90, ranking among the day’s notable gainers. The stock was lifted by broad-based buying in the automobile sector, supported by optimism over domestic demand and improved market sentiment following strong quarterly earnings across the sector.

Balkrishna Industries surged 11.06% to ₹2,312, emerging as one of the day’s biggest gainers. The rally followed the company’s strong June-quarter earnings, with robust operating performance and improved investor sentiment after the results.

Mahindra & Mahindra gained 2.26% to ₹3,294.60, supported by upbeat quarterly earnings and strength in the automobile pack. Positive demand trends in its SUV and tractor businesses also aided sentiment.

Tech Mahindra rose 1.51% to ₹1,669, extending gains as investors remained positive on the IT sector following recent earnings and expectations of sustained AI-led technology spending.

Sun Pharmaceutical Industries climbed 0.76% to ₹2,005 after the company received regulatory approval in Brazil, boosting expectations for its international business.

Redington gained 7.84% to ₹310 sharply after reporting better-than-expected Q1FY27 earnings, with strong volume-led buying supporting the move.

Syrma SGS Technology rose 2.19% to ₹1,372.80 moved higher following its June-quarter earnings, with investors reacting positively to improved financial performance and healthy order momentum.

TVS Motor Company’s stock traded firmly at 3.17% to ₹4,205, supported by strength across the automobile sector and continued optimism over demand and quarterly earnings.

Coal Indiashares edged higher at 1.79% to ₹417.40 as buying emerged in select PSU counters alongside firm commodity sentiment, helping the stock outperform the broader market.

Max Healthcare Institute rose 1.13% to ₹1,124 aided by sustained buying interest in defensive healthcare names amid a broadly positive market.

Adani Ports & Special Economic Zone declined 3.38% to close at ₹1,661.50, emerging as the top loser. The stock came under selling pressure amid profit booking in port and infrastructure counters despite the broader market remaining positive.

HDFC Life Insurance fell 2.09% to ₹545.05 making it one of the day’s biggest laggards. The stock witnessed broad-based selling in the insurance space, with investors booking profits after the recent rally.

Shriram Finance slipped 1.50% to ₹1,029, extending losses as financial stocks saw selective profit booking. The decline came despite the company recently reporting strong quarterly earnings, indicating the move was largely driven by valuation concerns and sector-wide selling.

Futures & Options
The Nifty August 2026 futures contract settled at 24,355, a premium of 37.85 points to the Nifty 50 cash index, which gained 66.95 points, or 0.28%, to close at 24,317.15. The positive premium indicated traders maintained a mildly bullish near-term outlook despite the modest gains in the cash market.

The NSE India VIX rose 1.22% to 12.16, signalling a slight increase in expectations of near-term market volatility. Mahindra & Mahindra, Infosys and Waaree Energies were the most actively traded individual stock futures contracts on the NSE. The August 2026 F&O series will expire on Aug. 25, 2026.

Bonds
Indian government bond yields remained under pressure as Brent crude swung between $89 and $93 a barrel, reviving concerns over imported inflation. The benchmark 6.94%, 2036 bond yield rose to 6.8189% intraday and ended at 6.8132%, up from 6.7964% at the previous close. Dealers said foreign portfolio investors continued trimming their holdings for the third consecutive session, adding to the cautious tone in the bond market.

Forex
The Indian rupee ended nearly unchanged at 95.68 per dollar today as likely intervention by the Reserve Bank of India offset pressure from volatile oil prices and persistent corporate dollar demand, helping the currency remain below the psychologically important 96-per-dollar level. Brent crude swung between $89 and $93 a barrel as renewed attacks between the United States and Iran fuelled concerns over oil flows through key shipping routes.

Heightened volatility in crude prices has also encouraged importers to step up hedging, sustaining dollar demand and weighing on the rupee in recent sessions despite the RBI's intervention.

Crypto
The cryptocurrency market traded largely steady today, with Bitcoin consolidating near $64,000 while Ethereum held firm above $1,900 ahead of the Federal Reserve's policy decision. Bitcoin traded near $63,916 today, holding close to the $64,000 mark after recovering from an intraday low of around $63,199. The cryptocurrency remained range-bound as buyers defended lower levels, while selling pressure capped gains near the $64,300 mark, leaving traders focused on key support and resistance levels ahead of the Federal Reserve's policy announcement.

Ethereum traded near $1,918.02, holding above the $1,900 level as investors awaited fresh policy signals from the Federal Reserve. The second-largest cryptocurrency remained broadly stable, with traders watching whether it can sustain momentum and challenge higher resistance levels.

US Stock Futures
US stock futures rose early today as investors assessed the Federal Reserve's decision to leave interest rates unchanged, the latest round of Big Tech earnings and renewed hostilities in West Asia. Dow futures gained 158 points, or 0.31%, while S&P 500 futures advanced 0.35% and Nasdaq-100 futures climbed 0.61%.

Microsoft rose 8.3% in pre-market trading after reporting strong growth in its Azure cloud business, while Meta Platforms fell 9% after issuing a softer revenue forecast and reporting a 91% decline in second-quarter free cash flow. Investors continued to assess the implications of the Fed's policy decision and corporate earnings for the outlook on technology spending and the broader market.

US Treasury
US Treasury note yields were little changed today, with the benchmark 10-year yield holding around 4.68% after climbing nearly 10 basis points in the previous session, as the Federal Reserve kept interest rates unchanged while three Federal Open Market Committee members dissented in favour of a rate hike. The two-year note yield eased 1 basis point to 4.28%, reflecting cautious positioning as investors assessed the Fed's policy stance.

Federal Reserve Chair Kevin Warsh said the decision to leave rates unchanged should not be interpreted as a sign of policy inertia, reiterating that future policy would depend on incoming economic data. Investors also monitored renewed tensions in West Asia after reports of fresh US air strikes on Iran, with uncertainty over the Strait of Hormuz continuing to keep inflation and interest-rate expectations in focus.

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