The Nifty also witnessed a major change in its levels on the first day of the Closing Auction Session (CAS). Ahead of the closing auction, the index was at 24,590 before ending the day at 24,774.
Here are the five key factors that drove the market higher:1. Financials and IT stocks powered the rally
Nearly 45 Nifty 50 constituents ended the session in the green, with information technology and financial stocks contributing the most to the benchmark gains.
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The Nifty Bank index jumped 983 points to 58,248, while the Nifty Midcap index advanced 764 points to 63,679.
2. IndiGo led gainers as crude prices fell
IndiGo emerged as the top gainer on the Nifty, supported by a decline in crude oil prices.
Among the benchmark gainers, Grasim Industries, Tata Consultancy Services (TCS), IndiGo and Infosys rose 4-5%. On the losing side, Apollo Hospitals, Sun Pharmaceutical Industries and Maruti Suzuki India ended the session in the red.
3. Earnings reactions lifted several stocks
Quarterly earnings and management commentary drove sharp stock-specific moves. APL Apollo Tubes surged 7% following strong commentary after its first-quarter earnings.
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Divi’s Laboratories gained 7% after reporting strong first-quarter numbers. ABB India advanced 4% as order inflows remained healthy, while Shree Cement rose 4% after positive management commentary and strong volumes.
4. July sales and business updates supported select stocks
Ashok Leyland climbed 5% after reporting strong July sales. ITC gained after reporting better-than-expected cigarette volumes, with Godfrey Phillips India also moving higher during the session.
Among mid-cap stocks, L&T Technology Services, Jubilant FoodWorks, Aditya Birla Capital and Vishal Mega Mart were among the top gainers.
5. Weak earnings and regulatory developments weighed on select shares
Muthoot Finance recovered from intraday lows but still ended 7% lower after reporting lower-than-expected first-quarter earnings. Meanwhile, Indian Energy Exchange (IEX) declined 4% after the Supreme Court allowed the Central Electricity Regulatory Commission (CERC) to frame market coupling regulations.
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Market breadth remained positive, with the advance-decline ratio at 5:2, indicating broad-based buying across the market.
From the Sensex basket, Shriram Finance Ltd, InterGlobe Aviation Ltd, Infosys Ltd, Tata Consultancy Services Ltd, Bajaj Finserv Ltd and ITC Ltd were the major gainers.
Sun Pharmaceutical Industries Ltd, Bharti Airtel Ltd, Apollo Hospitals Enterprise Ltd, Maruti Suzuki India Ltd, Tech Mahindra Ltd and Oil and Natural Gas Corporation Ltd were the biggest laggards.
Vinod Nair, Head of Research, Geojit Investments Limited, said, “The decline in crude oil prices, driven by expectations of renewed dialogue between the US and Iran, provided relief to markets by easing concerns over inflation and corporate earnings.
Market sentiment was further supported by a rebound in FII inflows and a strengthening rupee, although elevated US bond yields remain a key risk to the sustainability of foreign flows into emerging markets. Most sectors ended in positive territory, led by IT and FMCG, while pharma witnessed profit booking following its recent gains and the latest Q1 results outcomes.
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The Q1FY27 earnings season continues to progress ahead of expectations, with small-cap companies emerging as the strongest performers relative to large- and mid-cap peers. Investors will closely watch the upcoming RBI policy meeting for commentary on inflation risks, liquidity conditions, and the future policy trajectory, although interest rates are widely expected to remain unchanged.”
