Equity markets ended higher on Friday, with the Sensex gaining 166 points and the Nifty50 closing above the 24,350 mark. Strong buying in financial and automobile stocks, led by Bajaj Finance, Bajaj Finserv and Mahindra & Mahindra, helped the benchmarks overcome selling pressure in information technology stocks.
The BSE Sensex rose 166.49 points, or 0.21%, to close at 78,094.64, while the NSE Nifty50 advanced 66.45 points, or 0.27%, to settle at 24,383.60. The gains extended the market’s winning streak to a third session and helped both indices post their second consecutive monthly advance.
Bajaj Finance emerged as the biggest gainer on the Sensex, jumping 8.11% after the company reported strong June-quarter earnings. Bajaj Finserv followed with a 6.60% rise, while Mahindra & Mahindra climbed 3.58%. Adani Ports gained 2.12%, Tata Steel advanced 1.52% and Reliance Industries added 1%.
Bajaj Finance was the key driver of Friday’s rally after investors responded positively to its quarterly performance. The strong showing from the Bajaj companies also lifted the broader financial services space, which remained one of the strongest parts of the market.
Mahindra & Mahindra was another major contributor. The stock gained 3.58% as investors continued to respond to its quarterly performance and the broader strength in automobile stocks. The Nifty Auto index rose 1.64%, making it the best-performing major sectoral index during the session.
However, gains remained limited because of heavy selling in IT stocks. TCS was the biggest loser among the major benchmark constituents, falling 2.73%. Eternal declined 2.72%, while Infosys dropped 2.26%. Tech Mahindra fell 1.03% and HCLTech slipped 0.50%.
The weakness in technology shares came after a strong run earlier in July. The Nifty IT index fell 1.56% on Friday, although it remained the standout sector for the month, rising 16.8% in July. HCLTech was among the strongest monthly performers, gaining 25.7%, while Infosys, TCS and Tech Mahindra also posted double-digit monthly gains.
Other sectors performed better. The Financial Services Ex-Bank index jumped 2.91%, while Media rose 2.09%. Financial Services gained 1.17%, Oil & Gas advanced 1.08% and Pharma added 0.72%. FMCG, however, declined 1.05% alongside IT.
The broader market also remained positive. The Nifty 100, Nifty 200 and Nifty 500 gained around 0.46% each, while the Midcap and Smallcap indices also moved higher. India VIX, a measure of market volatility, fell 3.29% to 11.76, indicating relatively calmer trading conditions.
Friday’s performance also marked the end of a positive month for Indian equities. The Sensex gained about 2.1% in July, while the Nifty50 rose 2.2%. This followed gains of 2.3% and 1.4%, respectively, in June, giving both benchmarks two consecutive months of gains for the first time this year.
Foreign investor activity also improved during July. Foreign institutional investors, which had sold nearly $29.3 billion worth of Indian equities in the first six months of the year, turned net buyers in July with investments of around $1.6 billion. Improved domestic earnings and measures to support the rupee also helped sentiment.
The rupee strengthened to 95.38 against the US dollar on Friday, gaining 0.3% during the session. It recorded its strongest weekly performance since March. However, the currency still ended July around 0.7% lower as elevated crude oil prices continued to weigh on India’s import bill and market sentiment.
Crude remained a key concern for investors. Brent crude was trading around $88.16 a barrel, putting it on course for a monthly gain of about 21%. WTI crude was around $82.24 and was headed for an approximately 18% monthly increase.
The mixed performance of the top gainers and losers showed that investors remained selective. Financial and auto stocks attracted fresh buying on the back of earnings, while IT stocks saw profit booking after their strong July rally.