Equities End Flat as IT Rally Offsets Broad Weakness; Rupee Extends Recovery

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 Tresha Dias

July 28, 2026 at 12:18 PM IST

Indian equities ended almost flat on Tuesday as a sharp rally in information technology stocks offset broad-based weakness in other sectors. Benchmark indices were range-bound during the session ahead of the US Federal Reserve's monetary policy decision, and a packed week of corporate earnings. The Sensex fell 69.86 points, or 0.09%, to 76,765.92, while the Nifty50 slipped 10.60 points, or 0.04%, to 23,985.35, closing below the 24,000 mark.

The market failed to capitalise on the 3% decline in Brent crude oil prices to $85.60 a barrel, with gains remaining concentrated in select sectors rather than broadening across the market. The Nifty IT index jumped 3.32%, supported by buying in technology stocks, while the Realty and Consumer Durables indices rose 2.17% and 1.08%, respectively. In contrast, FMCG, PSU Bank and Metal stocks declined, keeping the benchmarks under pressure.

The broader market also lacked conviction. The BSE 150 MidCap Index was little changed, rising 0.01%, while the BSE 250 SmallCap Index fell 0.47%. Market breadth remained negative, although the India VIX eased 0.77% to 12.56, suggesting investors refrained from building aggressive hedges ahead of the Fed's policy decision and earnings from major US technology companies.

The Indian rupee strengthened to a two-week high today, extending its recovery from near-record lows as a sharp fall in oil prices and likely intervention by the Reserve Bank of India supported the currency. The rupee settled at 95.8525 per dollar, up 0.1% from previous close, while Brent crude fell 3% to $85.60 a barrel, its lowest level in more than a week. The local currency had hit a record low of 96.96 on May 20.

Yield on the 10-year benchmark 6.94%, 2036 government bond was at 6.7774%, compared with 6.7739% on Monday. Sales by state-owned banks to book profits offset buying sentiment from foreign portfolio investors. Seven states raised 192.8 billion rupees today through the auction of state government securities, against the 181 billion rupees notified.

Top Movers of the day

Coforge surged 10.16% to ₹1,683.70, gaining ₹155.30, after reporting a strong set of Q1 FY27 earnings. The IT services company posted 49% year-on-year revenue growth, a 110% jump in net profit, and a record $2.23 billion order book, prompting investors to re-rate the stock on expectations of sustained earnings growth.

Affle (India) rose 9.06% to ₹1,628, adding ₹139.00. The stock gained on continued buying interest in the digital advertising and technology space ahead of its quarterly earnings.

Lodha Developers advanced 9.37% to ₹1,311, up ₹112.30. The rally was driven by strong buying in real estate stocks amid optimism over resilient housing demand and expectations of healthy quarterly performance.

Kalyan Jewellers climbed 7.75% to ₹608.35, gaining ₹43.75. The stock extended its recent rally on sustained investor optimism over the company’s growth outlook and continued momentum in jewellery demand

City Union Bank gained 7.97% to ₹239.11, rising ₹17.66, and touched a fresh all-time high during the session. Investor sentiment improved ahead of the bank’s quarterly earnings, with expectations of stable asset quality and healthy loan growth supporting buying interest.

Hexaware Technologies rose 4.92% to ₹590.65, adding ₹27.70. The stock advanced after the company reported quarterly results that were viewed positively by the market, reinforcing confidence in its revenue growth and execution amid improving sentiment towards the IT sector.

Gallantt Ispat gained 5.00% to ₹574.60, rising ₹27.35, after announcing its Q1 FY27 results. While revenue increased 1.6% year-on-year to ₹11.46 billion, net profit declined 28.8% to ₹1.24 billion. The stock hit the upper circuit despite a decline in profit.

eClerx Services advanced 4.42% to ₹1,891.80, gaining ₹80.10. The stock was supported by continued buying in the IT services sector and expectations of resilient demand for digital transformation services.

Tata Consultancy Services rose 4.46% to ₹2,398, adding ₹102.40. The stock rebounded on broad-based buying in IT shares after recent weakness, supported by improving investor sentiment towards the sector.

Eternal gained 3.94% to ₹307.50, rising ₹11.65. The stock continued its upward momentum amid positive sentiment towards the consumer technology and quick commerce space.

Motilal Oswal Financial Services fell 1.81% to ₹853.55 despite reporting a 10% year-on-year rise in June-quarter consolidated net profit to ₹12.73 billion and a 31% increase in assets under management. The stock fell despite stronger quarterly earnings, suggesting investors focused on valuation after a recent rally.

Hindustan Unilever declined 7.11% to ₹2,020 after reporting weaker-than-expected June-quarter earnings, with lower profit and margin pressure disappointing investors, marking the stock's biggest single-day fall in more than six years.

Coal India fell 3.98% to ₹410.50 after missing June-quarter profit expectations, with the earnings miss weighing on investor sentiment despite the broader market remaining largely unchanged.

Futures & Options
Nifty August 2026 futures ended at 24,120.10 today, a premium of 134.75 points to the Nifty 50 cash index, which closed 10.60 points, or 0.04%, lower at 23,985.35. The premium indicates traders continued to price in a mildly positive near-term outlook despite the benchmark index ending marginally lower in the cash market.

Market volatility eased, with the NSE India VIX declining 0.77% to 12.56. In the derivatives segment, Infosys, Hindustan Unilever and Reliance Industries were the most actively traded individual stock futures contracts on the NSE. The August 2026 F&O series is scheduled to expire on 25 August 2026.

Bonds
The yield on the 10-year benchmark government bond 6.94%, 2036 bond was at 6.7774%, compared with 6.7739% on Monday. Sales by state-owned banks to book profits offset buying sentiment from foreign portfolio investors. Some traders also placed short bets on the benchmark 10-year gilt ahead of the 340 billion rupees supply of the bond which will hit the market on Friday, hoping to cover their bets at higher yields.

Seven states today raised 192.8 billion rupees through the auction of state government securities, against the 181 billion rupees notified. Maharashtra raised 62.5 billion rupees, including 30 billion rupees through the re-issue of the 7.91%, 2039 bond at 7.57%, against 24 billion rupees offered. Maharashtra also raised 20 billion rupees through the re-issue of the 8.07%, 2049 bond at 7.67%, against 16 billion rupees offered; and 12.5 billion rupees through the re-issue of the 7.35%, 2031 bond at 6.99%, against 10 billion rupees offered.

Forex
The Indian rupee strengthened to a two-week high today, extending its recovery from near-record lows as a sharp fall in oil prices and likely intervention by the Reserve Bank of India supported the currency. The rupee settled at 95.8525 per dollar, up 0.1% from the previous close, while Brent crude fell 3% to $85.60 a barrel, its lowest level in more than a week. The local currency had hit a record low of 96.96 on May 20.

Growing optimism over a resolution to the U.S.-Iran conflict has pulled Brent crude about 15% below last week's peak, easing pressure on the rupee. However, traders remain wary of another sharp reversal, with the conflict having swung repeatedly between signs of de-escalation and renewed escalation since late February.

Crypto
The cryptocurrency market traded lower today as broad-based selling weighed on major digital assets, with Bitcoin and Ethereum extending losses. Bitcoin traded at $63,497 today after falling sharply from almost $64,900 to around $63,200 during the early hours as heavy selling pressure weighed on the market. The cryptocurrency later recovered part of its losses after finding support near the day's lows. Bitcoin was down about 2.7%-3%, trading within a 24-hour range of roughly $63,000-$65,650. Its market capitalisation stood at about $1.27 trillion, while 24-hour trading volume reached nearly $27 billion.

Ethereum traded at $1,882.51 today after recovering from an earlier decline below the key $1,900 level. The rebound pointed to renewed buying interest, although the second-largest cryptocurrency remained below the $1,900 mark, leaving investors focused on whether it can reclaim that level in the near term.

US Stock Futures
US stock futures were mixed today as investors awaited a busy week of megacap earnings and the Federal Reserve's interest rate decision. S&P 500 futures slipped 0.1%, while Nasdaq-100 futures fell 0.73%. Dow futures rose 86 points, or 0.16%.

Investors are now turning their attention to earnings from major technology companies and the Fed's policy decision for clues on artificial intelligence spending, corporate outlooks and the path of interest rates.

US Treasury Notes
US Treasury note yields were little changed today, with the benchmark 10-year yield holding around 4.64% as investors awaited the Federal Reserve's policy decision later this week. The three-year and five-year note yields eased 4 basis points and 3 basis points to 4.33% and 4.38%, respectively, while markets continued to price in an over one-third chance of a rate hike at the meeting.

Expectations for tighter monetary policy remained in focus, with markets assigning around a 56% probability of a rate hike in September. Meanwhile, President Donald Trump's comments that the US was engaged in "good talks" with Iran weighed on oil prices, easing concerns over inflation and reducing upward pressure on Treasury yields.

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