The Indian equity market had a positive close on Friday, July 31. However, the above headline doesn’t explain the whole picture. There was a sharp rise in financial and automobile companies whereas there was a fall in important IT companies. The Sensex Index rose by 166.49 points or 0.21 percent to close at 78,094.64. On the other hand, Nifty 50 Index increased by 66.45 points or 0.27 percent to close at 24,383.60. Nifty 50 traded within a small range during the trading day.
Bajaj Finance leads the rally
Bajaj Finance was the biggest driver of the Nifty’s gains. The stock jumped 8.32 percent to ₹1,141.20. It also touched a record high during the session. The sharp rise came after a strong June quarter performance. Bajaj Finance reported a 27.4 percent year-on-year rise in net profit to ₹5,986 crore for the first quarter of FY27.
The asset under management of the bank also increased sharply. The asset under management increased by 24 percent year on year to reach around ₹5.47 lakh crore. There has been improvement in the asset quality too. The gross non-performing asset was 0.96 percent while the net NPA was 0.39 percent. The good performance of the bank increased the confidence of the investors in the bank.
Bajaj Finserv also gains
Bajaj Finance was not alone. Bajaj Finserv rose 6.37 percent to ₹2,031. The company reported a 12 percent year-on-year rise in consolidated net profit to ₹3,132 crore for Q1 FY27. Its net interest income also grew 20 percent during the quarter. The company also said its board had approved plans to pursue a reinsurance business.
Jio Financial Services gained 3.71 percent. Mahindra & Mahindra rose 3.33 percent. Shriram Finance added 1.85 percent. This gave financial and auto stocks a strong role in supporting the benchmarks.
IT stocks move in the opposite direction
The IT sector was the biggest drag on the market. TCS fell 2.71 percent. Infosys declined 2.18 percent. Wipro dropped 1.38 percent, while Tech Mahindra lost 0.90 percent. Eternal also fell 2.58 percent. The weakness in IT is notable because global technology stocks had a stronger backdrop. This means today’s decline cannot simply be explained by a broad global tech sell-off.
Indian IT stocks have already been under pressure in 2026. Concerns around slower outsourcing demand and the impact of artificial intelligence on traditional IT services have weighed on the sector. That broader concern remains a key overhang for the sector.
Market breadth stays positive
However, despite poor performances by many large cap stocks, the general performance of the markets was bullish. At the NSE, 2,068 stocks gained whereas 1,255 others fell. Moreover, 112 other stocks closed flat.
This is significant since it demonstrates that Friday’s rally was not solely a function of the big index heavyweights. At the BSE, there were 2,566 gains against 1,657 losses.
Rupee gains against dollar
The Indian rupee strengthened against the US dollar. The NSE reference rate stood at ₹95.3706 per dollar on Friday. It was ₹95.7327 on the previous trading day.
A stronger rupee can be a mixed factor for the market. It can reduce the cost of imports, but it can also affect the earnings outlook of export-heavy sectors such as IT.
What does this mean for investors?
Friday’s session showed a clear divergence across sectors. Financial stocks got a boost from strong earnings. Auto stocks also performed well. IT stocks, meanwhile, remained under pressure.
The result was a modest rise in the benchmark indices, but a more active shift underneath the surface. The Nifty now enters August above the 24,300 mark. Investors will be watching the next batch of corporate earnings, foreign fund flows, global markets and the rupee for fresh cues. For now, the message from Friday’s session is simple: domestic financial strength helped the market absorb weakness in IT.
(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)
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