Hello Readers,
Here’s the week in a recap…
Despite a strong rebound on Friday led by TCS and IT stocks, Indian benchmark indices ended the week marginally lower, snapping their four-week winning streak. Investors will now look to Q1 earnings, inflation data, crude oil prices, and geopolitical developments for the market’s next direction.
Weekly Overview
Although Indian markets saw a rally on Friday, 10 July, they snapped their weekly winning streak after four weeks of consecutive gains. The renewed tension between the US and Iran made the markets volatile again, with crude prices losing their cool and volatility surging.
The equity market benchmark indices BSE Sensex and Nifty 50 rallied 1.08% and 1.02% on Friday; however, they declined marginally on a weekly basis. Both the indices dropped by around 0.25% at the end of the week, with BSE Sensex closing at 77,569.39, and Nifty 50 closing at 24,206.9.
Broader markets also witnessed a heavy sell-off mid-week due to the heightened geopolitical crisis but ended in the green with marginal gains. Nifty 500 gained 0.2% during the week, closing at 23,348.9. The index rallied 1.16% on Friday, which offset the mid-week declines.
Similarly, Nifty Midcap 150 and Nifty Smallcap 250 rallied 1.36% each on Friday, and extended an overall weekly gain of 1.23% and 0.68% respectively.
The volatility index Indian VIX closed at 12.25 on 10 July, rising 3.81% during the week.
Weekly Performance of Key Indices
| Index | CURRENT | %CHNG | PREV. CLOSE | 1W AGO 03-Jul-2026 | Weekly Change (%) |
| BSE Sensex | 77,569.39 | 1.08 | 76,741.82 | 77,763.91 | -0.25 |
| NIFTY 50 | 24,206.90 | 1.02 | 23,962.80 | 24,270.85 | -0.26 |
| NIFTY NEXT 50 | 72,391.80 | 1.27 | 71,485.85 | 72,268.95 | 0.17 |
| NIFTY BANK | 58,045.90 | 1.39 | 57,252.45 | 57,938.50 | 0.19 |
| NIFTY 500 | 23,348.40 | 1.16 | 23,081.15 | 23,301.15 | 0.20 |
| NIFTY MIDCAP 150 | 23,166.50 | 1.36 | 22,855.75 | 22,884.35 | 1.23 |
| NIFTY SMALLCAP 250 | 18,118.90 | 1.36 | 17,875.70 | 17,996.25 | 0.68 |
| INDIA VIX | 12.25 | -8.3 | 13.36 | 11.8 | 3.81 |
Source: NSE, BSE
Key Market Triggers
Indian markets were recovering steadily in the past month until mid-week this week when fresh tension erupted between the US and Iran. The markets again came under pressure with the US threatening Iran with more strikes, and Iran retaliating by attacking the vessels in the Strait of Hormuz.
The renewed tension soon pushed the crude prices up; however, on Friday, Brent Crude closed at $76 per barrel, easing after touching higher levels earlier this week.
Having said that, FIIs steadily bought Indian equities during the week amidst this West Asia crisis, which has helped the market to quite an extent. FIIs bought domestic equities worth $1516.96 million (net) during the week, offsetting the negative market sentiment due to the ongoing crisis.
Another positive trigger for the Indian markets during the week was better-than-expected Q1 results of TCS, which kick-started this earnings season, boosting the market sentiments, especially within the IT sector.
Coming to the Indian currency, Rupee ended almost flat on Friday at 95.325 per US dollar but declined around 0.1% over the week. This is again driven by cautiousness of the investors as Rupee is highly sensitive to oil prices.
The Fed keeping the rates unchanged also offered support to the domestic equity, but it indicated towards rate hikes in the coming session, which triggered a sell-off, especially across IT stocks.
Weekly Sectoral Performance
The realty sector won the sectoral rally for the second week in a row, with Nifty Realty Index gaining over 5.4% during the week.
Consumer durables sector was next in line with Nifty consumer durable index gaining 3.74%.
Interestingly enough, Indian IT and Telecom sectors were amongst the top sectoral performers during the week. Nifty IT index closed with 2.08% gains on Friday even after a heavy sell-off noticed earlier in the week, driven by geopolitical crisis as well as US rate cut indications. However, TCS’s earnings for the June quarter uplifted investors’ sentiments.
Amongst the poor performers during the week, Nifty Media index lost the most. It declined over 1.8%.
FMCG sector followed, along with the Nifty FMCG index losing 1.57 during the week.
Source: NSE
Wrapping Up
Indian markets ended the week on a cautious note as geopolitical tensions and elevated crude oil prices weighed on investor sentiment, despite a strong recovery on Friday. Going ahead, the Q1 earnings season, June inflation data, FII flows, and global developments will be the key factors shaping market direction.
