Markets End Week Higher as Earnings Optimism Offsets Global Tensions - Paper by Pocketful
Market Recap: 31st July, 2026
Stock News Highlights
Bajaj Finance (+8.32%): Shares surged after the company reported a 27% YoY rise in Q1 FY27 profit, with AUM growing 24% to ₹5.47 lakh crore, new loans increasing 20%, and asset quality improving as gross NPAs fell below 1%, boosting investor confidence.
Hyundai Motor India (+8.05%): Shares surged despite a 34% YoY decline in Q1 FY27 profit, as management reaffirmed its FY27 guidance of 8–10% volume growth and 11–14% EBITDA margins, boosting investor confidence.
Astra Microwave Products (+7.86%): Shares rose sharply after the company secured a ₹2,205.23 crore order from Hindustan Aeronautics Ltd (HAL) to supply 122 Advanced Airborne Active Array Units (AAAUs) and 121 interface frames for the indigenous Uttam Radar programme, strengthening its defence order book and long-term revenue visibility.
Mankind Pharma (-4.13%): Shares fell despite reporting a 30% YoY rise in Q1 FY27 net profit to ₹719 crore and a 13% increase in revenue to ₹3,719 crore, as profit booking and valuation concerns weighed on investor sentiment.
Sectoral Performance
Nifty Media (+2.09%): The index emerged as one of the top sectoral gainers, led by Nazara Technologies, Zee Entertainment, and Tips Music, as broad-based buying and positive market sentiment extended the sector’s rally for a third consecutive session.
Nifty Auto (+1.63%): The index rose with 12 gainers and 3 losers, supported by strong Q1 earnings, an upbeat FY27 outlook, healthy vehicle demand, and optimism around new launches across the auto sector.
Nifty IT (-4.00%): The index declined with 2 gainers and 8 losers, as broad-based profit booking followed a sharp July rally, with investors booking gains in major IT stocks amid rotation out of AI-driven technology trades.
Nifty FMCG (-0.94%): The index declined for a second consecutive session, dragged by losses in ITC, Britannia, and Varun Beverages, as investors booked profits amid valuation concerns and shifted towards cyclical sectors.
Market Insights
Technical Level: Nifty opened with a minor gap-up and consolidated in a narrow range during the first half, forming strong support around 24,300. Buying momentum picked up in the second half, pushing the index towards resistance 24,430, where it faced resistance before easing slightly. The index remained in positive territory throughout the session and closed with modest gains.
Advance-Decline Ratio: Market breadth remained positive, with 2,067 stocks advancing against 1,252 declining, indicating broad-based buying support across the broader market and healthy investor participation.
The Big Picture: Global sentiment remained cautious after Iran claimed attacks on U.S. military assets in Kuwait and Bahrain, escalating Middle East tensions following fresh U.S. strikes. Concerns over disruptions to regional energy infrastructure kept geopolitical risks elevated, although easing fears around the Strait of Hormuz helped Brent crude slip below $88 per barrel by the close, limiting pressure on global equities.
FII/DII Activity (July 31, 2026): Both institutional investors remained net buyers, with FIIs purchasing ₹277 crore and DIIs buying ₹2,260 crore, reflecting continued domestic support alongside modest foreign inflows.
Watch Out For Tomorrow
IPO Corner: Manipal Health IPO Closing for subscription Tomorrow, making the IPO subscribed half on day 2.
Macro: Japan Inflation Rate YoY (Jun) & UK Retail Sales MoM (Jun) data scheduled for release tomorrow.
Market Watch: Friday ended the week on a positive note as upbeat corporate guidance and resilient earnings outlook supported sentiment. Auto extended gains, while Media led sectoral advances. IT declined on profit booking after a strong rally. Despite escalating Middle East tensions, easing oil prices and healthy market breadth kept investors focused on fundamentals.
5-Day Course
Theme: Basics of Commodity Trading
Day 2 – Types of Commodities & How They Behave
Commodities are mainly divided into four categories:
Precious Metals - Gold, Silver
Base Metals - Copper, Zinc, Aluminium
Energy - Crude Oil, Natural Gas
Agriculture - Cotton, Wheat, Soybean
Each commodity reacts differently to economic and global events.
Example:
Gold often performs well during market fear and inflation
Crude oil reacts sharply to geopolitical tensions and supply cuts
Copper demand increases when industrial growth improves
Choosing the right commodity depends on market understanding and risk appetite.
Word of the day
Profit Booking
Meaning: Selling stocks after a price rise to lock in gains, even when the long-term outlook remains positive.
Example: Investors engaged in profit booking in IT stocks after their strong rally, leading to a sector-wide decline.