Market Update | 10th July 2026

Indian benchmark equity indices ended the week on a strong note, extending gains for the second consecutive session as robust quarterly earnings from TCS, easing crude oil prices, and a sharp decline in market volatility boosted investor confidence. Broad-based buying across sectors helped the Nifty 50 reclaim the crucial 24,200 mark, while the Sensex gained over 800 points.

The Nifty 50 opened with a gap-up of more than 150 points and maintained its positive momentum throughout the trading session, closing at 24,206.90, up 244.10 points (+1.02%). The BSE Sensex surged 827.57 points (+1.08%) to settle at 77,569.39. The Bank Nifty outperformed, advancing 1.39% to finish above the 58,000 mark. Meanwhile, India VIX declined nearly 8%, slipping below 13, signalling easing market volatility and improving investor sentiment.

Mutual fund inflows remained robust during June. Equity-oriented mutual fund schemes attracted ₹28,973 crore, a 26.5% increase over May’s ₹22,908 crore, with investors continuing to favour Mid-Cap, Small-Cap, and Flexi-Cap funds. Sectoral and thematic fund inflows more than doubled during the month. However, the overall mutual fund industry recorded net outflows of ₹52,949 crore, primarily due to withdrawals exceeding ₹1 lakh crore from debt-oriented schemes. Other categories, including Index Funds, Gold ETFs, ETFs, and Overseas Fund-of-Funds, witnessed a sharp recovery, attracting ₹16,724 crore.

Sectoral Performance

Market participation remained broad-based, with 10 out of 11 sectoral indices ending in positive territory. The broader markets also outperformed, as the Nifty Midcap 100 gained 1.40% and the Nifty Smallcap 100 advanced 1.55%.

The Nifty Realty index emerged as the top performer, rallying 3.49% as all its constituents ended higher. The index touched an eight-month high and has gained nearly 13% so far in July.

The Nifty IT index climbed 1.96%, supported by stronger-than-expected quarterly results from TCS, with LTIMindtree jumping around 3.5% on optimism surrounding improved technology spending and a favourable currency environment.

The Nifty Metal and Nifty Consumer Durables indices also posted healthy gains. The only sector ending in the red was Nifty FMCG, which slipped 0.08% due to weakness in Marico. Pharma and Healthcare lagged the broader market despite ending with modest gains.

Stocks in Focus

Among individual stocks, Dr. Reddy’s Laboratories declined another 2%, extending the previous session’s losses after the company announced continued supply disruptions of generic semaglutide due to API quality issues.

Dixon Technologies initially gained nearly 3% after the government approved its joint venture with Vivo Mobile to manufacture smartphones in India. However, the stock erased intraday gains and eventually closed 0.5% lower.

The biggest contributors to the Nifty’s rally were:

• Reliance Industries (+41.31 points)
• ICICI Bank (+32.05 points)
• HDFC Bank (+24.73 points)

The key drags on the index were:

• Bharti Airtel
• Eternal
• Dr. Reddy’s Laboratories

Market Breadth

Market breadth remained decisively positive, reflecting strong buying across the broader market.

• Advancing Stocks: 2,339
• Declining Stocks: 976
• Unchanged: 95

52-Week Highs: 110 stocks
52-Week Lows: 36 stocks

Upper Circuits: 113 stocks
Lower Circuits: 71 stocks

Technical Outlook

The Nifty’s strong close above 24,200 reinforces the ongoing bullish momentum and indicates renewed buying interest after the recent correction. A sustained move above this level could pave the way towards the 24,350–24,500 zone in the coming sessions, while 24,000 is expected to act as the immediate support. With volatility cooling and earnings season underway, stock-specific action is likely to dominate the market in the near term.

Happy Investing!