Markets Recover, but Geopolitical Risks Keep Investors Cautious - Paper by Pocketful

Jul 09, 2026

TVS Motor Company (-0.37%): Shares declined despite partnering with Indian Oil Corporation to promote sustainable last-mile LPG cylinder deliveries across its network of over 13,000 LPG distributors.
HFCL (-0.03%): Shares remained flat despite the company launching OptiQ AI, a unified brand for its optical connectivity portfolio targeting AI, cloud, and hyperscale data centres.
TCS (-0.39%): Shares remained in focus after Q1 FY27 profit fell 2.7% QoQ to ₹13,349 crore, while revenue beat estimates and the board declared a ₹12 dividend.
Dr Reddy’s Laboratories (-5.89%): Shares plunged after the company delayed semaglutide commercial supplies due to an API-related quality issue affecting certain product batches.

Nifty Realty (+3.54%): The index surged on strong buying interest, reversing its two-day decline, led by Lodha Developers, DLF, and Phoenix Mills, while turning positive on a year-to-date basis.
Nifty Media (+2.09%): The index rose after four consecutive sessions of decline, with 9 gainers and 1 loser, supported by bargain buying at lower levels.
Nifty IT (-0.30%): The index declined despite more stocks advancing, as losses in heavyweights Infosys, TCS, and Tech Mahindra outweighed gains, with investors cautious ahead of TCS’ Q1 FY27 results.
Nifty Auto (+0.21%): The index recovered alongside the broader market, with 8 gainers and 7 losers, rebounding from the previous session’s geopolitical tensions and crude oil-driven sell-off.

Technical Level: Nifty opened with a minor gap-up and moved higher during the morning session, facing resistance near 24,130. The index reversed sharply after hitting resistance, consolidated in a range, and witnessed a late-session sell-off before finding support near 23,920 and recovering slightly.
Advance-Decline Ratio: Market breadth remained strongly positive, with 2,521 stocks advancing against 779 declining, indicating broad-based buying interest and strong investor sentiment across the broader market.
The Big Picture: Oil prices remained volatile after fresh U.S. strikes on Iran escalated geopolitical tensions and renewed concerns over supply disruptions in the Middle East. Fears of attacks on commercial shipping and potential disruptions around the Strait of Hormuz kept crude prices elevated, adding uncertainty and pressure to global market sentiment.
FII/DII Activity (July 08, 2026): FIIs remained net buyers with purchases worth ₹1,963 crore, while DIIs also supported market sentiment with net buying of ₹790 crore.

IPO Corner: Kusumgar IPO closes tomorrow, with the public issue subscribed over 12 times, reflecting strong investor demand.
Macro: Canada Unemployment Rate (Jun) & Brazil Inflation Rate YoY (Jun) data scheduled for release tomorrow.
Market Watch: Indian markets rebounded after Wednesday’s sharp sell-off, supported by strong market breadth as advances outnumbered declines by over 3:1. Realty and Media led the recovery despite elevated crude prices and geopolitical tensions. Investor focus now shifts to TCS Q1 results, with management commentary on demand, deal wins, and AI opportunities in focus.

Resilience: Resilience refers to a market’s ability to withstand negative events, economic uncertainty, or selling pressure and recover quickly, reflecting strong investor confidence and underlying market strength.

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