Equities Gain as IT, Financials Surge; Rupee Slides as Oil Stays Elevated

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

iStock.com

By Dehuti Jani

July 17, 2026 at 11:54 AM IST

Indian equity benchmarks ended higher on Friday, led by information technology and financial stocks after upbeat quarterly results from Tech Mahindra and Jio Financial Services, helping the market post weekly gains despite trading in its narrowest range of 2026. The Nifty50 advanced 1.09% to 24,334.30, while the Sensex gained 1.25% to 78,151.45. The rally helped the Nifty and Sensex end the week 0.5% and 0.8% higher, respectively, with the Nifty trading within a 368-point range during the week, its narrowest weekly band this year.

Technology stocks led the gains, with the Nifty IT index rising 1.8% after Tech Mahindra reported stronger-than-expected quarterly revenue. The sector gained 4.3% for the week, supported by robust earnings from Tata Consultancy Services and HCL Technologies, as softer US inflation improved sentiment towards export-oriented IT companies. Financial stocks also advanced, led by Jio Financial Services, HDFC Bank and ICICI Bank ahead of their quarterly earnings, while Reliance Industries gained ahead of its results after the promoter group increased its stake in the company.

The Indian rupee ended little changed at 96.28 per US dollar but recorded its sharpest weekly decline since May, falling about 1% over the week. Elevated crude oil prices and persistent merchant dollar demand continued to pressure the currency as Brent crude rose nearly 2% on Friday to around $85.7 per barrel amid intensifying US-Iran hostilities.

Indian government bonds remained under pressure as traders reduced risk ahead of the weekend amid continued volatility in crude oil prices and US Treasury yields. The benchmark 6.94% GS 2036 yield rose to 6.7799% from 6.7478% at the previous close. Dealers said fresh short positions in the benchmark bond, along with the market's absorption of the newly issued 7.24% GS 2055 security, weighed on sentiment. Repo turnover in the benchmark 6.94% GS 2036 bond stood at 41.34 billion rupees, indicating elevated borrowing activity linked to short positioning.

Top Movers of the day

Federal Bank climbed 7.16% to ₹350, hitting a fresh all-time high as investors built positions ahead of the bank's quarterly earnings and maintained a positive view on the banking sector.

Kalyan Jewellers advanced 4.90% to ₹573.40, extending its recent rally on strong trading volumes and continued investor confidence in the jewellery retailer's growth outlook.

Bharat Forge gained 4.36% to ₹2,196.40, supported by investor optimism over its defence order pipeline and recent contract wins.

Tech Mahindra rose 3.82% to ₹1,568 as IT stocks rallied broadly, making the sector the best performer during the session.

Kotak Mahindra Bank advanced 3.63% to ₹390.85 after investors responded positively to the bank's quarterly earnings and outlook.

Exide Industries gained 3.35% to ₹435.40 as auto and auto-ancillary stocks attracted buying interest.

Sona BLW Precision Forgings rose 3.42% to ₹706.80, tracking gains across auto-component stocks as investors remained positive on the sector's growth outlook.

Prestige Estates Projects gained 3.30% to ₹1,695.90 as real estate stocks extended their recent rally on continued investor buying.

360 ONE WAM rose 3.03% to ₹1,114.10 after reporting strong first-quarter FY27 earnings, with consolidated net profit rising and assets under management reaching ₹7.77 trillion, while Jefferies and Citi retained bullish ratings and raised their price targets.

DLF advanced 2.96% to ₹667.30 as real estate stocks continued to gain on expectations of resilient residential demand.

Torrent Pharmaceuticals fell 4.50% to ₹4,763.00 after investors reacted negatively to its agreement to acquire a controlling stake in JB Chemicals & Pharmaceuticals, with concerns over the transaction's size, funding and integration risks weighing on the stock.

Hitachi Energy India declined 4.38% to ₹32,075.00 as investors assessed the potential impact of increased Chinese competition in India's power equipment market following a government decision allowing select Chinese manufacturers to bid for certain tenders.

GE Vernova T&D India Ltd dropped 4.29% to ₹4,387.40 as power equipment stocks weakened on concerns that the government's temporary exemption for select Chinese electrical equipment manufacturers could intensify competition for domestic supplies.

Futures & Options
Nifty July 2026 futures settled at 24,345.00, a 10.70-point premium to the Nifty 50 cash index, which jumped 261.55 points, or 1.09%, to close at 24,334.30 on Friday. The India VIX, the NSE's gauge of expected near-term market volatility, rose 2.07% to 13.15.

Infosys, Reliance Industries and Tata Consultancy Services were the most actively traded individual stock futures contracts on the NSE during the session. The July 2026 derivatives contracts will expire on 28 July 2026.

Bonds
Indian government bond prices stayed under pressure through the session as traders turned cautious heading into the weekend. The yield on the benchmark 6.94% 2036 bond ended at 6.7799%, extending losses from the previous close of 6.7478%. Shorting activity in the benchmark 6.94%, 2036 bond added to the pressure on bond prices. As traders digested the fresh supply of the 7.24%, 2055 bond, it placed fresh short bets in the benchmark 2036 paper.

Volumes also stayed thin as traders refrained from building fresh positions with geopolitical uncertainty in West Asia keeping risk appetite in check. The sell-off in the secondary market was triggered by weaker-than-expected auction results, while simmering geopolitical tensions kept sentiment subdued.

Forex
The Indian rupee closed at 96.28 per dollar on Friday, logging its sharpest weekly decline since May and falling about 1% over the week as a 13% surge in Brent crude prices and persistent merchant dollar demand weighed on the currency.

Brent rose as fighting between the United States and Iran intensified, disrupting energy supplies through the Strait of Hormuz. Dollar sales by state-run banks, on behalf of the Reserve Bank of India, helped limit losses.

Crypto
Cryptocurrencies traded lower today as investors adopted a risk-off stance ahead of the US House Financial Services Committee’s hearing on the CLARITY Act which is expected to influence the future regulatory framework for cryptocurrencies. Bitcoin traded near $63,437 on Friday, down almost 1.7% from the previous day.

Ethereum fell 3.6% to around $1,848. The decline reflected a broader risk-off sentiment across global financial markets, with investors reducing exposure to both equities and digital assets. Bitcoin remained range-bound as traders awaited the U.S. House Financial Services Committee hearing on the CLARITY Act. The rally has been supported by fresh institutional inflows, highlighting continued investor interest in the cryptocurrency despite short-term market volatility.

US Stock Futures
US stock futures fell sharply early Friday after the U.S. military carried out a sixth consecutive night of strikes against Iran, adding to pressure from a difficult session on Wall Street in which semiconductor stocks extended their losses. Dow Jones Industrial Average futures fell 301 points, or 0.6%, while S&P 500 futures declined 0.8% and Nasdaq-100 futures dropped 1.6%.

US Central Command said it had completed its sixth consecutive evening of strikes against Iran, targeting dozens of military sites, including logistics infrastructure and maritime capabilities. The escalation comes after a fragile truce reached last month fractured, disrupting energy flows through the Strait of Hormuz, a key shipping route that typically handles around 20% of global oil traffic.

US Treasury Notes
US Treasury note yields were largely steady, with the benchmark 10-year yield hovering around 4.53% and the two-year note yield near 4.12%, as investors weighed cooling inflation against geopolitical tensions and changing expectations for the Federal Reserve's rate path. The relatively narrow spread between shorter- and longer-dated maturities kept the focus on the outlook for inflation and monetary policy.

The five-year yield stood at around 4.26%, while the seven-year yield was near 4.41%. Treasury yields have fluctuated as markets assess whether easing price pressures could allow the Federal Reserve to adjust its policy stance, while geopolitical developments continue to add uncertainty to the inflation outlook.

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