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Key gauges end higher despite escalating US-Iran tensions
Jul-29-2026

Indian equity benchmarks rebounded sharply and ended over a per cent higher on Wednesday, led by TECK, IT and Metal stocks and fresh foreign fund inflows. Foreign Institutional Investors (FIIs) turned buyers, purchasing equities worth Rs 755.33 crore on Tuesday. Sentiments remained up-beat throughout the day even as crude oil prices jumped following escalating tension between the US and Iran.

Some of the important factors in trade: 

Indian corporates to clock 9% aggregate revenue in FY27: Fitch Ratings has projected aggregate revenue for rated corporates to rise by 9 per cent in the current fiscal, stronger than the 5 per cent estimated for FY26, which would keep credit metrics of Indian companies stable.

India’s macroeconomic fundamentals remain strong despite global headwinds: Union Minister Pankaj Chaudhary has said that macroeconomic fundamentals of the Indian economy remain strong, supported by robust domestic demand, healthy corporate balance sheets and sustained fiscal discipline amid global challenges.

India's net FDI recovers to $6.95 billion in FY26: Minister of State for Finance Pankaj Chaudhary said India's net foreign direct investment (FDI) recovered to $6.95 billion in FY26 from $0.96 billion in FY25, though it remained well below $27.99 billion in FY23 and $10.13 billion in FY24. 

India’s merchandise trade deficit shows development, investment requirements: Amid rising merchandise trade deficit, Minister of State for Commerce and Industry Jitin Prasada has suggested that the deficit should be viewed as a by-product of India's stage of development, investment requirements and dependence on energy imports. 

Global front: European markets were trading mostly in green despite fresh U.S.-Iran tensions. Asian markets ended mixed as joint strikes in Iraq by the United States and Saudi Arabia raised concerns about a prolonged war in the Middle East. Caution ahead of big tech earnings and the Federal Reserve's interest-rate decision later in the day also kept investors on edge. 

Finally, the BSE Sensex rose 888.68 points or 1.16% to 77,654.60 and the CNX Nifty was up by 264.85 points or 1.10% to 24,250.20.   

The BSE Sensex touched high and low of 77,765.49 and 77,333.24, respectively. There were 25 stocks advancing against 5 stocks declining on the index.     

The top gaining sectoral indices on the BSE were TECK up by 2.47%, IT up by 2.40%, Metal up by 2.26%, Telecom up by 1.70% and FMCG up by 1.50%, while Realty down by 0.31%, Oil & Gas down by 0.17%, Power down by 0.17% and Auto down by 0.10% were the losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 4.70%, Infosys up by 4.50%, Trent up by 2.56%, Larsen & Toubro up by 2.55% and Bharti Airtel up by 2.52%. On the flip side, Adani Ports &SEZ down by 3.19%, Mahindra & Mahindra down by 1.51%, Power Grid down by 0.89%, Bharat Electronics down by 0.39% and NTPC down by 0.09% were the top losers.

Meanwhile, highlighting India’s strong macroeconomic fundamentals, Union Minister Pankaj Chaudhary has said the Indian economy remains resilient with real GDP expanding at over 7 per cent annually over the past three years, supported by robust domestic demand, healthy corporate balance sheets, and sustained fiscal discipline despite global headwinds. He also cited the RBI’s Financial Stability Report (June 2026), which noted that the domestic financial system continues to remain resilient, underpinned by strong balance sheets across banks and non-banking financial institutions.

Referring to the impact of global developments on the Indian currency, Chaudhary said “As a major player in global markets, India’s economy is closely linked with international trends, which influence exchange rate movements. Since the onset of the West Asia conflict, the Indian Rupee (INR) has depreciated by 5.8 per cent against the US Dollar (USD) in FY27 (from February 27 to July 22, 2026).” 

He further noted that high-frequency indicators for the first quarter of FY 2026-27 point to sustained momentum in economic activity and domestic demand, reflecting the continued resilience of the Indian economy. The Index of Industrial Production (IIP) registered year-on-year growth of 4.9 per cent in April 2026 and 5.1 per cent in May 2026, indicating that investment-led industrial growth has remained on track despite elevated global uncertainty.

He said “Industries dependent on imported inputs may face cost pressures. To support stability, the Government is mitigating import-led inflation through duty adjustments, expanding credit access for MSMEs, ensuring affordable financing, attracting long-term foreign direct investment (FDI), promoting trade facilitation and digital platforms, and advancing free trade agreements.”

He also reiterated that the value of the Indian Rupee is market-determined and is not managed within any target, specific level, or trading band. He said the Reserve Bank of India (RBI) continuously monitors developments in the foreign exchange market and intervenes whenever required to address excessive volatility. In addition, the RBI closely tracks global developments that could have an impact on the USD-INR exchange rate.

CNX Nifty touched high and low of 24,283.55 and 24,136.75, respectively. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were JIO Financial Services up by 4.92%, Hindustan Unilever up by 4.81%, Infosys up by 4.32%, Hindalco Industries up by 2.95% and Tata Steel up by 2.67%. On the flip side, Adani Ports &SEZ down by 3.03%, Mahindra & Mahindra down by 1.32%, Power Grid down by 0.67%, Eicher Motors down by 0.51% and Bajaj Auto down by 0.43% were the top losers.

European markets were trading mostly in green; Germany’s DAX gained 14.49 points or 0.06% to 25,478.50  and UK’s FTSE 100 increased 29.21 points or 0.27% to 10,900.23, while France’s CAC fell 44.08 points or 0.52% to 8,414.70.

Asian markets ended mixed on Wednesday ahead of the Federal Reserve's interest-rate decision later in the day, while concerns over artificial intelligence (AI) valuations and a prolonged war in the Middle East also kept investors on edge. The US Central Command reported that multiple ballistic missiles launched by Iran at US forces in the Middle East were successfully intercepted, which reignited regional tensions and drove oil prices higher. Japanese shares fell ahead of major US big tech earnings and an upcoming Bank of Japan policy rate decision. South Horea’s Kospi index slumped as heavyweight chipmaker SK Hynix’s earnings failed to impress the market. Meanwhile, Chinese shares gained as a rebound in technology shares helped benchmarks recover from recent losses.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,828.47

15.15

0.40

Hang Seng

25,807.92

497.07

1.96

Jakarta Composite

6,091.39

-39.20

-0.64

KLSE Composite

1,715.56

3.08

0.18

Nikkei 225

61,434.19

-930.73

-1.49

Straits Times

5,713.19

97.08

1.73

KOSPI Composite

5,663.24

-360.42

-5.98

Taiwan Weighted

40,039.18

-1,564.18

-3.76
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