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Key gauges end in green amid foreign fund inflows
Jul-31-2026

Indian equity benchmarks ended in green on Friday, supported by gains in Auto, Capital Goods and Industrials stocks. The positive undertone was supported by a sharp rally in global markets, robust domestic quarterly earnings and sustained foreign institutional investor (FII) inflows. However, profit-taking in IT stocks along with the uncertain situation in the Middle East limited the gains in the market.

Some of the important factors in trade: 

India-EU FTA includes comprehensive plan to address EU carbon tax concerns: Additional Secretary in the Department of Commerce, Darpan Jain has said the India-European Union (EU) Free Trade Agreement (FTA) includes a comprehensive work plan to address concerns surrounding the EU's Carbon Border Adjustment Mechanism (CBAM), commonly referred to as the carbon tax. 

Growth in Asia-Pacific region likely to moderate to 4.1% in 2026: Moody's in its latest report has said that the growth in the Asia-Pacific (APAC) region is likely to moderate to 4.1 per cent in 2026 from 4.3 per cent in 2025 and further to slow down to 3.6 per cent in 2027, amid high commodity prices, tighter policy settings, and unusually hot and dry weather.

India, Bhutan review progress of India-supported projects, ink Rs 4,000 crore line of credit: Deeping bilateral ties, India and Bhutan have reviewed the progress and implementation of India-supported projects across diverse sectors in Bhutan. Further, they inked pact for a concessional line of credit of Rs 4,000 crore (Nu 40 billion) to support development initiatives in Bhutan.

India accelerates investments in ports, waterways, shipbuilding to achieve Viksit Bharat 2047 goals: Union Minister for Ports, Shipping & Waterways Sarbananda Sonowal said India is stepping up investments in ports, inland waterways and shipbuilding as the Ministry of Ports, Shipping and Waterways (MoPSW) advances its roadmap towards Viksit Bharat 2047. 

Global front: European markets were trading higher even as flash data from Eurostat showed Eurozone inflation increased in July on energy and services costs. Inflation edged up to 2.9 percent in July from 2.8 percent in June. Asian markets settled mostly higher with South Korean and Japanese markets skyrocketing as investors returned to AI stocks.

Finally, the BSE Sensex rose 166.49 points or 0.21% to 78,094.64 and the CNX Nifty was up by 66.45 points or 0.27% to 24,383.60.   

The BSE Sensex touched high and low of 78,272.25 and 77,809.93, respectively. There were 16 stocks advancing against 14 stocks declining on the index.      

The top gaining sectoral indices on the BSE were Auto up by 1.99%, Capital Goods up by 1.78%, Industrials up by 1.31%, Power up by 1.26% and Oil & Gas up by 1.01%, while IT down by 1.39%, FMCG down by 0.90%, TECK down by 0.73% and Consumer Durables down by 0.16% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 8.04%, Bajaj Finserv up by 6.60%, Mahindra & Mahindra up by 3.58%, Tata Steel up by 1.63% and Adani Ports &SEZ up by 1.56%. On the flip side, TCS down by 2.71%, Eternal down by 2.67%, Infosys down by 2.26%, ITC down by 1.51% and Tech Mahindra down by 1.13% were the top losers.

Meanwhile, Moody's in its latest report has said that the growth in the Asia-Pacific (APAC) region is likely to moderate to 4.1 per cent in 2026 from 4.3 per cent in 2025 and further to slow down to 3.6 per cent in 2027, amid high commodity prices, tighter policy settings, and unusually hot and dry weather. However, it is expecting India to remain one of the fastest-growing major economies in the Asia-Pacific region, even as higher oil prices, fresh US tariffs and slowing global growth pose risks to the outlook.

As per the report, the Asia-Pacific economy has dodged the sharp slowdown that many feared the West Asia conflict would provoke. Further, the artificial intelligence boom has driven robust export and investment growth, accelerating overall GDP growth across much of the region. It said the West Asia conflict remains on a knife-edge and the Strait of Hormuz's full reopening looks set to be a long process, punctuated by setbacks.

Moody's said the West Asia conflict has driven up inflation across Asia in the past few months and the resurgence in inflation has put central banks in the hot seat. It further said that another key risk is the developing El Nino weather pattern, which looks set to bring hotter and drier conditions to much of the region in the second half of the year. Lower rainfall could reduce crop yields and hurt food supplies, particularly if conditions prove more severe than anticipated and countries are underprepared. The report noted that El Nino poses a dual risk of food and energy vulnerability for India.

CNX Nifty touched high and low of 24,429.40 and 24,299.70, respectively. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 8.32%, Bajaj Finserv up by 6.37%, JIO Financial Services up by 3.71%, Mahindra & Mahindra up by 3.33% and Shriram Finance up by 1.85%. On the flip side, TCS down by 2.71%, Eternal down by 2.58%, Infosys down by 2.18%, Max Healthcare down by 2.08% and ITC down by 1.42% were the top losers. 

European markets were trading higher; UK’s FTSE 100 increased 38.51 points or 0.35% to 10,935.78, France’s CAC rose 78.06 points or 0.92% to 8,563.70 and Germany’s DAX gained 176.27 points or 0.69% to 25,788.30. 

Asian markets settled mostly higher on Friday, led by the South Korean, Taiwanese and Japanese markets, tracking a strong global rebound in technology and semiconductor stocks after upbeat earnings from Microsoft eased earlier investor fears regarding heavy artificial intelligence spending. Meanwhile, Wall Street’s gains overnight after the Fed's interest-rate decision also helped to support market sentiments. Japanese shares gained after the Bank of Japan left its short-term policy rate steady at 1%, in line with expectations, keeping borrowing costs at their highest level since September 1995 following a 25-basis-point rate hike in June. However, some gains were limited as Middle East tensions persisted, China manufacturing data disappointed and uncertainty prevailed over the US interest-rate outlook. The National Bureau of Statistics has stated that the manufacturing sector in China slipped into contraction territory in July, with a manufacturing PMI score of 49.2. That missed forecasts for a score of 50.1 and was down from 50.3 in June. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,832.26

27.57

0.72

Hang Seng

25,884.43

25.55

0.10

Jakarta Composite

6,236.13

49.77

0.80

KLSE Composite

1,724.90

4.50

0.26

Nikkei 225

64,362.02

2,494.59

4.03

Straits Times

5,628.50

-45.08

-0.79

KOSPI Composite

6,595.45

1,001.89

17.91

Taiwan Weighted

43,119.75

3,186.45

7.98
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