IT Rally and Broad Buying Lift Markets Despite Oil Spike & Middle East Escalation - Paper by Pocketful
Market Recap: 29th July, 2026
Stock News Highlights
Kaynes Technology (+12.73%): Shares emerged as the day’s top gainer, surging after the company unveiled plans to expand its semiconductor supply chain under ISM 2.0 through strategic joint ventures, boosting investor confidence in its long-term growth prospects.
Adani Ports (-3.10%): Shares fell despite the company reporting a strong Q1 FY27, with net profit rising 10% YoY to ₹3,650 crore and revenue increasing 19% YoY. Investors booked profits after the stock’s recent rally, outweighing the healthy earnings performance.
Rail Vikas Nigam (+1.58%): Stock rose after the company secured a ₹358.97 crore EPC contract from East Central Railway for doubling works on the Kundawa Chainpur - Raxaul section, strengthening its order book and boosting growth prospects.
Phoenix Mills (-5.57%): Shares declined despite the company reporting a strong Q1 FY27, with net profit rising 23% YoY to ₹297 crore and revenue increasing 13% YoY to ₹1,074.94 crore. Investors booked profits after the recent rally despite healthy operational performance.
Sectoral Performance
Nifty IT (+2.32%): The index emerged as the top sectoral gainer, extending its rally for a fourth consecutive session, led by Infosys, TCS, and HCL Technologies, as fading concerns over AI spending and improving global technology sentiment boosted buying across the sector.
Nifty Metal (+2.31%): The index rebounded after declining in the previous session, with all constituents ending in the green, as bargain buying emerged following recent weakness and improving global risk sentiment lifted metal stocks.
Nifty Realty (-0.33%): The index declined as key constituent Phoenix Mills fell after its Q1 FY27 results, while profit booking following the sector’s recent rally weighed on sentiment despite gains in select realty stocks.
Nifty Auto (-0.06%): The index ended marginally lower, with 8 gainers and 7 losers, as weakness in select large-cap auto stocks offset gains elsewhere. Investors remained cautious ahead of monthly sales data and upcoming earnings announcements, keeping the sector range-bound.
Market Insights
Technical Level: Nifty opened with a strong gap-up and formed early support around 24,140. The index gradually moved higher throughout the session, faced resistance near 24,350, and closed close to that level, indicating sustained buying interest and strong bullish momentum into the close.
Advance-Decline Ratio: Market breadth remained strong, with 2,129 stocks advancing against 1,181 declining, indicating broad-based buying interest across the market and healthy participation in the day’s rally.
The Big Picture: Despite fresh geopolitical tensions after Iran condemned the US-Saudi strikes in Iraq as a violation of sovereignty and warned of dangerous regional consequences, global markets remained resilient. Investor focus shifted toward improving risk sentiment and corporate earnings, allowing equities to sustain their relief rally even as Brent crude stayed elevated.
FII/DII Activity (July 28, 2026): DIIs remained net buyers, purchasing ₹1,664 crore, while FIIs were net sellers, offloading ₹755 crore, reflecting continued domestic institutional support despite persistent foreign selling.
Watch Out For Tomorrow
IPO Corner: Manipal Health IPO Closing for subscription Tomorrow, making the key primary market offerings with Average GMP on day 1.
Macro: USA Fed Interest Rate Decision data scheduled for release today.
Market Watch: Thursday’s focus shifts to whether the bulls can extend the momentum after Nifty shrugged off fresh geopolitical tensions and closed near the day’s high. Immediate resistance is placed around 24,360, while strong support is seen near 24,143. Investors will closely track Eicher Motors and Waaree Energies’ Q1 FY27 earnings, along with developments in the Middle East after Iran condemned the US-Saudi strikes in Iraq that reportedly killed at least eight PMF members. Brent crude prices, foreign institutional flows, and any further geopolitical escalation will remain key triggers for market sentiment.
Word of the day
Escalation: A rapid increase in the intensity or seriousness of a conflict, dispute, or situation.
Example:
Despite the escalation of tensions in the Middle East, Indian equity markets remained resilient and ended the session with strong gains.
Why it matters:
Escalating geopolitical conflicts can influence oil prices, inflation expectations, investor sentiment, and global financial markets.