Indian Equities Gain ₹6 Lakh Crore on Strong Earnings, Geopolitical Calm
Indian benchmarks rallied over 1% as early Q1 earnings reports and easing US-Iran tensions offset broader weekly losses, adding ₹6 lakh crore to market capitalisation.
Indian equities posted a second consecutive session of strong gains on 10 July, with the Sensex rising 828 points to 77,569.39 and the Nifty 50 climbing 1.02% to 24,206.90. The broad-based rally added nearly ₹6 lakh crore to the BSE's total market capitalisation, bringing it to approximately ₹482 lakh crore.
The advance was underpinned by cooling geopolitical tensions and favourable domestic macroeconomic indicators. Reports that the US and Iran would continue technical talks despite recent clashes boosted global risk appetite. Lower oil prices, with Brent crude dipping below $76 per barrel, combined with a stronger rupee to support the mood. The Indian currency appreciated 16 paise to close at 95.31 against the dollar.
Corporate earnings provided the fundamental catalyst for the rally. In-line first-quarter results from Tata Consultancy Services lifted the IT sector, while positive business updates from lenders buoyed bank stocks. "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," said Vinod Nair, Head of Research at Geojit Investments Limited.
The sectoral landscape reflected this optimism. The Nifty Realty index led gains with a 3.49% jump, followed by PSU Banks at 3.03% and IT at 1.96%. Financials also performed well, with the Nifty Bank and Financial Services indices rising 1.39% and 1.32% respectively. Among individual Nifty 50 constituents, Jio Financial Services, HDFC Life Insurance Company, and Adani Enterprises were the top performers, while Dr. Reddy's Laboratories, Eternal, and Bharti Airtel lagged.
Derivatives and technical indicators suggest the uptick has room to run. The India VIX fell 8% to 12.25, signalling subdued expectations for near-term volatility. Rupak De, Senior Technical Analyst at LKP Securities, noted that the Nifty has moved back above its falling trendline. "Momentum indicators also support the bullish outlook, with the RSI re-entering a bullish crossover on the hourly chart," De said, pointing to immediate resistance at 24,500 and strong support at 24,000. SBI Securities' Sudeep Shah pegged immediate resistance slightly lower in the 24,350-24,400 zone.
Despite the two-day surge of 1.4% for both main indices, the broader weekly picture remains less rosy. The Sensex and Nifty each slipped 0.25% over the week, snapping a four-week winning streak. Market breadth showed a stark divergence, as 141 BSE-listed stocks hit 52-week highs while 73 registered 52-week lows, highlighting a fragmented market underneath the benchmark rally.
