Weekly market update, Jul 31, 2026

The Indian stock markets witnessed a robust recovery during the week, as softer crude oil prices, easing geopolitical tensions, upbeat Q1 FY27 earnings, and a return of foreign institutional investor (FII) inflows boosted investor sentiment. The decline in crude oil prices from recent peaks eased concerns over imported inflation, corporate profitability, and India’s external account. For the week, the Sensex and Nifty 50 rose by 2.68% and 2.59% respectively. Broader market indices, the BSE 150 Midcap and BSE 250 Smallcap gained by 2.01% and 1.95% respectively. On the BSE sectoral front, Most were up. BSE IT was the major gainer, up 6.45% followed by Auto, up 5.84% and Healthcare, up 2.84%.

Looking ahead, Investor attention in the coming week will remain firmly focused on geopolitical developments in the Middle East, with any further escalation in the US-Iran conflict likely to have an immediate impact on crude oil prices and broader global risk sentiment. Beyond geopolitics, Investors will closely track US labour market data, while domestically, FII Flows, the RBI’s policy decision and PMI releases will provide key cues on growth and inflation trends.

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