Indian equities rally 1% as TCS earnings and easing oil prices lift sentiment
Indian benchmark indices surged more than 1% on Friday, recouping recent losses as strong quarterly updates from TCS and Indian Bank combined with falling crude oil prices to trigger broad-based buying.
Indian equities posted solid gains on July 10, with the Nifty 50 and Sensex both rising more than 1%. The rally recovered much of the ground lost in prior sessions, though both benchmarks still ended the week marginally lower. Broader markets significantly outperformed, as the Nifty Midcap 100 added 1.4% and the Nifty Smallcap 100 climbed 1.55%.
The risk-on tone was underpinned by a favorable shift in macroeconomic headwinds. Crude oil prices declined and the Indian rupee recovered, providing relief to domestic markets. Furthermore, geopolitical risks eased following reports that the US and Iran would proceed with peace negotiations, dialing back fears of sustained disruptions to energy shipments through the Strait of Hormuz.
Corporate earnings provided the primary catalyst for the session. Tata Consultancy Services reported June-quarter revenue that exceeded expectations, citing stronger spending from banking clients and the benefits of a weaker rupee. The results fueled a broad rally across the sector, lifting the Nifty IT index 2% for the week—its steepest weekly climb in nearly two months. Mid- and small-cap IT peers including Newgen Software Technologies, Firstsource Solutions, and Persistent Systems advanced between 3.4% and 9.3%.
State-owned banks staged a parallel recovery. An upbeat June-quarter business update from Indian Bank ignited buying across the public sector banking space, pushing the Nifty PSU Bank index into positive territory for the week and snapping a two-week losing streak. Major state lenders including Union Bank of India, Bank of India, and Canara Bank gained between 2.5% and 4.6%.
Individual stock moves were pronounced. Godrej Industries surged 15% to ₹1,399, while Zensar Technologies rebounded 13.6% to ₹508 after four straight losing sessions. Kalyan Jewellers rose 7.48%, capping a 27% weekly gain that marked its largest rally since listing. Capital market stocks also benefited from the broader buying, with CDSL gaining 6.3%. On the downside, Schneider Electric fell 5% to ₹1,414 and Dr. Reddy's Laboratories dropped another 2% to ₹1,244, extending its previous session's 6% plunge to hit a mid-May low.
Almost all major sectoral indices closed higher, with Nifty Realty surging 3.5% to lead the pack. Only Nifty FMCG ended in negative territory. For market participants, the session demonstrated how quickly domestic sentiment can shift when external macro pressures ease and bellwether earnings validate underlying demand in key sectors like IT and banking.
