India’s equity market surged sharply on Friday with benchmark indices - BSE Sensex and NSE Nifty50 - gaining over 1% each on the back of improved investor sentiment, which was aided by easing geopolitical tensions and a continued decline in crude oil prices. At close, the Nifty 50 gained 1.02% to settle at 24,206, while the Sensex advanced 1.08% to close at 77,569.
As per the latest development, missile exchanges in the West Asia region have come to a halt amid reports that efforts are being made to get diplomacy between Iran and the US back on track after the exchange of heavy fire earlier this week. The global equity market took a beating on Wednesday after US President Donald Trump said that the interim agreement with Iran is over.
“Globally, easing oil prices and a recovery in the technology sector have further improved sentiment toward India, supporting a rebound in FII inflows. Importantly, the hawkish tone of the FOMC meeting has not weighed on global markets, as recent data suggests inflationary pressures are likely to moderate,” said Vinod Nair, Head of Research, Geojit Investments Limited. Brent crude oil prices were trading at a minor cut at $76 a barrel on Friday.
He added that Positive business updates from banks, along with a constructive outlook for the IT sector driven by in-line estimates, a potential rebound in global spending, and AI-related opportunities, have set the stage for an optimistic start to the Q1 earnings season.
Shares of Tata Consultancy Services rose about 4% intraday on Friday after the company reported a 5% increase in consolidated net profit to Rs 13,349 crore for Q1FY27. The stock settled 1% higher at Rs 2,068 apiece. Other IT stocks such as Infosys and Wipro also advanced on Friday.
The broader market outperformed the benchmark indices on Friday and continued its strong momentum. The Nifty Midcap 100 index gained 1.40% to close at a record high, while the Nifty Smallcap 100 index advanced 1.49%. Among individual stocks, Kalyan Jewellers extended its strong rally for a third consecutive session on Friday, climbing more than 8% to emerge as the top gainer on the BSE Midcap index. Shares of Anand Rathi Wealth hit a fresh record high on Friday after the company's assets under management (AUM) crossed Rs 1 lakh crore at the end of the June quarter.
Vinit Bolinjkar- Head of Research- Ventura said that markets remain sensitive to developments in India–U.S. trade negotiations and geopolitical risks. He added that while the near-term trend appears constructive, we expect continued volatility with Nifty finding support around 23,700–23,800 and resistance near 24,200–24,300.
Meanwhile, Foreign Institutional Investors (FIIs) have turned net buyers in the first week of July 2026, recording cumulative inflows of over Rz 3,421 crore in the cash market, reversing the cautious stance seen in late June. This shift reflects improving sentiment amid stabilising global cues, expectations of a constructive Q1 earnings season, and selective buying in financials and autos, said Bolinjkar.
