Equities Rebound as Oil Slumps; Rupee, Bonds Rally on West Asia Relief

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

Tresha Dias

Dehuti Jani

July 27, 2026 at 12:06 PM IST

Indian equity benchmarks rebounded on Monday after five consecutive sessions of losses as a sharp fall in crude oil prices and easing tensions in West Asia improved risk sentiment across markets.

The Nifty50 rose 228.50 points or 0.96% to 23,995.95, while the Sensex gained 776.01 points or 1.02% to 76,835.78, recovering part of the 2.3%-2.7% losses recorded over the previous five sessions.

Market sentiment strengthened after the US and Iran paused military action over the weekend, easing fears of an immediate disruption to oil supplies. Brent crude tumbled nearly 7% to around $90 per barrel, providing relief to oil-importing economies such as India. All 16 major sectoral indices ended higher, led by IT, media and realty stocks, which gained more than 2% each. Broader markets also advanced, with the Nifty MidCap 100 and Nifty SmallCap 100 rising 1.1% and 1.3%, respectively. The India VIX declined 9.7% to 12.66, reflecting easing near-term market uncertainty.

The Indian rupee posted its strongest single-session gain in more than six weeks, supported by the sharp decline in crude oil prices and likely intervention by the Reserve Bank of India. The currency strengthened from the previous close of 96.5625 per US dollar to touch an intraday high of 95.7950, with traders also citing stop-losses on long dollar positions after geopolitical risks eased.

Indian government bonds also rallied as lower crude oil prices and softer US Treasury yields boosted demand across the curve. The benchmark 6.94% GS 2036 yield fell to 6.7739% from the previous close of 6.8253%. Dealers said foreign portfolio investors were active buyers across the five- to 15-year segment, purchasing government securities worth 7.68 billion rupees through the Fully Accessible Route by 1445 IST, adding further support to the market.

Top Movers of the Day

Eternal gained 5.61% to ₹295.70, leading the Nifty gainers as platform stocks rallied on easing crude oil prices and improving risk appetite, with strong buying in food delivery and quick commerce names.

InterGlobe Aviation rose 5% to around ₹5,240, supported by lower crude oil prices following the pause in US-Iran strikes, improving the earnings outlook for airline companies.

Infosys advanced 3.59% to around ₹1,078, as the Nifty IT index gained about 2.3% on value buying amid easing concerns over crude oil prices and global bond yields.

Bajaj Finance climbed about 3% to ₹1,049, tracking broad-based gains in financial stocks as expectations of stable interest rates and softer bond yields boosted sentiment towards NBFCs.

Shriram Finance added nearly 3% to ₹1,038, as investors remained optimistic about sustained credit growth and easing funding costs following the decline in bond yields.

IDFC First Bank surged 5% to around ₹85 after reporting a record quarterly profit, with Q1 net profit rising 132% year-on-year to ₹1,075 crore, supported by strong net interest income, margins and asset quality.

DCB Bank gained 2.7% to ₹191.40, as investors welcomed its June-quarter business update and accumulated smaller private banking stocks.

Canara Bank rose about 1.08% to around ₹127.01 after reporting a 2% year-on-year rise in Q1 net profit to ₹4,856 crore, while net interest income increased 13%.

KFin Technologies jumped about 11% to ₹949 despite a decline in quarterly profit, as investors focused on robust revenue growth and improving business momentum.

Dr Lal PathLabs gained 3.47%, trading around ₹1,820, after June-quarter earnings exceeded estimates, prompting multiple brokerages to raise their target prices.

ONGC declined 4.17% to ₹238.39, emerging as the biggest Nifty loser as lower crude oil prices weighed on the earnings outlook for upstream oil producers and triggered profit booking.

Futures & Options
The Nifty July 2026 futures contract closed at 24,040, a premium of 44.05 points to the Nifty 50's cash-market close of 23,995.95. The Nifty 50 surged 228.50 points, or 0.96%, on the day, while the NSE's India VIX fell 9.76% to 12.66, indicating a sharp easing in near-term volatility expectations.

Infosys, HDFC Bank and Reliance Industries were the most-traded individual stock futures contracts in the NSE's F&O segment. The July 2026 F&O contracts expire on Jul 28, 2026.

Bonds
The yield on the benchmark government bond 6.94%, 2036 ended at 6.7739%, compared to the previous close of 6.8253%. Foreign portfolio investors were seen buying gilts maturing across five to 15 years. As of 14.45 IST, FPIs have bought gilts worth 7.68 billion rupees today through the fully accessible route. Mutual funds and foreign banks were also seen buying gilts as Brent crude oil prices fell to $85.60 per barrel. Meanwhile, state-owned banks likely booked profits on the 10- and 15-year bonds, capping the rise in prices.

Forex
The Indian rupee posted its strongest session in more than six weeks today, rising 0.7% as a plunge in oil prices and likely Reserve Bank of India intervention triggered stop-losses on long-dollar positions. The rupee opened at 96.1475 per dollar and climbed to an intraday high of 95.7950, its biggest single-session gain since June 12, after closing at 96.5625 on Friday.

The rally gathered pace after the dollar-rupee pair broke below the 96.14-96.16 range and fell to around 95.80 within minutes, traders said. Falling oil prices after a pause in US-Iran attacks, a break above near-term technical resistance and RBI dollar sales all contributed to the rupee's gains.

Crypto
The cryptocurrency market traded mixed today, with Bitcoin holding above $65,000 while Ethereum recovered from a recent decline below the $1,900 level.

Bitcoin traded near $65,478 today after touching an intraday high of $65,511 and a low of $65,454 on the five-minute Bitstamp chart. The cryptocurrency remained above the key $65,000 level after pulling back slightly from the day's high. The price also held above the middle Bollinger Band, while the 20-period moving average continued to rise, keeping the short-term uptrend intact.

Ethereum traded near $1,950 after recovering from a recent decline below the $1,900 support level. The rebound indicated renewed demand, although the cryptocurrency remained below the $2,000 level, which continues to act as an important resistance area.

US Stock Futures
US stock futures rallied early Monday as oil prices fell sharply after fighting between the United States and Iran paused over the weekend, easing pressure on risk sentiment. Dow Jones Industrial Average futures rose 550 points, or 1.1%, while S&P 500 futures gained 1% and Nasdaq-100 futures advanced 1.7%.

Brent crude futures for September delivery fell 9.2% to around $87.89 a barrel, while U.S. West Texas Intermediate crude futures dropped more than 7% to $82.46. Investors were also looking ahead to a busy week of megacap earnings from Amazon, Apple, Meta Platforms and Microsoft, as well as a potentially consequential Federal Reserve meeting, with the results likely to shape expectations for artificial intelligence spending and influence semiconductor stocks.

US Treasury Notes
US Treasury note yields fell today, with the benchmark 10-year yield easing to around 4.64% from recent six-month highs as crude oil prices declined after a pause in hostilities between the US and Iran over the weekend. The two-year yield stood near 4.31%, while the five-year yield also moved lower to 4.40%, as the easing in immediate supply disruption concerns reduced pressure on the inflation outlook.

Investors turned their focus to the Federal Reserve's policy meeting this week, where interest rates are widely expected to remain unchanged. Markets are also awaiting advance second-quarter GDP data, PCE inflation figures and earnings from major US companies for further clues on the strength of the economy.

Top News