Equities End Flat as IT Gains Offset Financial Weakness; Bond Yields Ease

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

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By Dehuti Jani

July 16, 2026 at 12:11 PM IST

Indian equity benchmarks ended little changed on Thursday as gains in information technology stocks offset weakness in financial shares following quarterly earnings, while renewed geopolitical tensions in West Asia kept investors cautious. The Nifty50 slipped 5.75 points or 0.02% to 24,072.75, while the Sensex ended virtually unchanged at 77,186.87.

Market sentiment remained mixed after HSBC upgraded Indian equities to "neutral" from "underweight", citing lower crude oil prices and measures to stabilise the rupee that have helped revive foreign portfolio inflows. However, concerns over renewed US-Iran hostilities continued to cap risk appetite despite Brent crude remaining well below its April peak.

The IT index rose 0.7%, recovering from recent losses, while heavyweight financial stocks declined after earnings. ICICI Lombard Insurance dropped sharply after its quarterly results, while ICICI Prudential Life also ended lower. Realty, banking and financial services stocks underperformed, whereas chemical and consumer durable stocks led sectoral gains. Among Nifty50 constituents, Eternal, SBI Life Insurance Company and Bajaj Finserv were the top losers. Broader markets also weakened, with the Nifty MidCap and Nifty SmallCap indices declining 0.4% and 0.1%, respectively.

The Indian rupee weakened 0.1% to 96.3450 per US dollar, remaining close to its weakest level in nearly two months as dollar demand linked to maturing non-deliverable forward contracts outweighed support from softer crude oil prices and stronger regional currencies.

Indian government bonds extended gains as the absence of fresh negative triggers kept sentiment stable ahead of Friday's 320-billion-rupee gilt auction. The benchmark 6.94% GS 2036 yield eased to 6.7478% from 6.7738% at the previous close. Dealers said foreign portfolio investors continued buying longer-dated government securities amid expectations of India's inclusion in the Bloomberg Global Aggregate Index, although profit booking at the shorter end limited further gains.

Top Movers of the day

MRPL surged 10.07% to ₹173.33 after the refinery operator reported a sharp improvement in quarterly performance, including a turnaround in profitability and a near doubling in revenue.

Emmvee Photovoltaic Power jumped 8.16% to ₹365.35, with investor interest building ahead of the company's first-quarter FY27 earnings conference call scheduled for Thursday.

ABB India advanced 6.43% to ₹7,667.50 after its parent reported an 81% year-on-year increase in India order inflows in the second quarter, well above market expectations.

Dixon Technologies climbed 6.27% to ₹14,507 after the government approved a ₹1.27 trillion second phase of the India Semiconductor Mission and a ₹625 billion mobile-phone manufacturing scheme.

Himadri Speciality Chemical rose 5.99% to ₹722.35 ahead of its first-quarter FY27 earnings conference call.

Indian Energy Exchange gained 4.92% to ₹124.74 after its subsidiary Indian Gas Exchange filed for an IPO, with IEX planning to reduce its stake to meet regulatory requirements.

R R Kabel gained 4.91% to ₹2,403.90 after the company reported a better-than-expected fourth-quarter performance, with profit rising 30% year on year.

Jindal Saw advanced 4.89% to ₹268.05 on strong buying interest, with no confirmed company-specific catalyst immediately evident.

Graphite India climbed 4.80% to ₹655.10 as investors continued to assess the company's decision to shut its German operations amid weak demand and the impact of the Russia-Ukraine war.

UPL rose 4.78% to ₹625.85, supported by expectations of improved farmer cash flows and 5%-10% growth in agrochemical consumption in the first quarter of FY27, while the company's ₹6 dividend declaration, with a July 17 record date, also supported investor sentiment.

Ramkrishna Forgings gained 4.65% to ₹589.70, supported by investor optimism over its diversification into aluminium forgings, electric vehicles and railway components, alongside strong volume growth, promoter capital infusions and positive brokerage coverage.

ICICI Lombard General Insurance fell 10.51% to ₹1,623.80, recording the sharpest decline among the stocks shown and hitting a 52-week low during the session.

Signature Global (India) declined 5.77% to ₹793.15, extending losses as sustained selling pressure weighed on the stock.

Nuvoco Vistas Corporation slipped 5.12% to ₹357.95, reversing recent gains amid selling pressure in the cement stock.

Futures & Options
Nifty July 2026 futures settled at 24,103.70, a premium of 30.95 points over the spot Nifty 50 close of 24,072.75, indicating a mildly positive undertone in the derivatives market. In the cash market, the Nifty 50 slipped 5.75 points or 0.02% as investors remained cautious amid mixed corporate earnings and geopolitical uncertainty.

Meanwhile, India VIX declined 2.92% to 12.88, reflecting easing near-term volatility expectations. Among stock futures, Bharat Electronics, Dixon Technologies and TCS were the most actively traded contracts in the NSE F&O segment. The July 2026 derivatives series will expire on 28 July 2026.

Bonds
Indian government bonds held onto gains through the session as the absence of fresh negative triggers kept sentiment broadly stable, though selling emerged ahead of the Reserve Bank of India's 320-billion-rupee gilt auction on Friday. The yield on the benchmark 6.94%, 2036 bond was at 6.7478%, compared with the previous close of 6.7738%.With no fresh cues to drive the market, bond prices held their ground through the session despite a modest uptick in US Treasury yields. Foreign portfolio investors actively bought at the longer end of the curve, continuing to support gilts amid expectations of inclusion in Bloomberg Global Aggregate Index, with the timeline now shifting to end-July.

Profit booking emerged at the shorter end, with traders locking in gains after the recent rally in shorter-tenure papers. Some selling was also visible ahead of the RBI's 320-billion-rupee government securities auction scheduled for Friday, as traders lightened positions ahead of fresh supply.

Forex
The Indian rupee ended modestly weaker on Thursday, unable to benefit from lower oil prices and broad gains in regional currencies as dollar demand linked to maturing non-deliverable forward contracts weighed on the currency. The rupee settled at 96.3450 per dollar, down 0.1% from the previous close and near its weakest level in almost two months.

The rupee has fallen back to levels seen before policymakers announced a series of measures to boost dollar inflows, including incentives for overseas dollar deposits and the removal of taxes on foreign investments in government debt. Traders said persistent dollar demand from merchants, along with intermittent NDF maturities, has continued to pressure the currency, as seen on Thursday.

Crypto
The cryptocurrency market traded largely steady. Bitcoin held near $64,636.95 on Thursday, extending its recovery after softer-than-expected US inflation data eased concerns over further Federal Reserve tightening. Lower Treasury yields supported broader demand for risk assets. The cryptocurrency rose 0.001% over the past 24 hours, with a market capitalization of $1.29 trillion and 24-hour trading volume of $27.19 billion.

Ethereum traded at $1,917.79 on Thursday, remaining the standout large-cap performer after rising more than 10% over the week. The cryptocurrency gained 0.025% over the past 24 hours, with a market capitalization of $231.44 billion and 24-hour trading volume of $12.58 billion, while markets turned their attention to upcoming producer price data and fresh Federal Reserve commentary.

US Stock Futures
US stock futures turned lower early Thursday after a rally in the previous session fuelled by cooler inflation, lower Treasury yields and upbeat earnings reports. Dow Jones Industrial Average futures fell 29 points, or 0.08%, while S&P 500 futures slipped 0.04% and Nasdaq-100 futures declined 0.27%, reversing earlier gains.

US technology stocks were set to open lower as semiconductor shares continued to retreat in Asia and Europe. Nvidia fell 1.18% in pre-market trading, while Advanced Micro Devices declined 2.27%, Micron dropped 2.65% and Broadcom shed 1.14%. In regular trading on Wednesday, the Dow rose 0.3% to 52,659.18, the S&P 500 gained 0.4% to 7,572.43 and the Nasdaq Composite advanced 0.6% to 26,269.23.

US Treasury
US Treasury note yields edged lower, with the benchmark 10-year yield at 4.56%, as softer-than-expected inflation data reduced expectations of a near-term Federal Reserve rate hike. The two-year note yield stood at 4.14%, while the three-year and five-year yields were around 4.12%-4.15% and 4.35%, respectively.

Yields retreated over the week after softer US Consumer Price Index and Producer Price Index data shifted investor focus back towards the Federal Reserve's monetary policy path, while geopolitical tensions remained a key market consideration.

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