NEW DELHI, July 18: The domestic equity market closed the week with modest gains, supported by upbeat corporate earnings and policy measures, even as investors remained cautious amid escalating geopolitical tensions in the Middle East and a sharp rally in crude oil prices.
For the week, the Nifty advanced 127.4 points, or 0.5 per cent, while the Sensex gained 582.06 points, or 0.8 per cent, reversing the losses seen in the previous week.
Investor sentiment remained guarded after the US Central Command (CENTCOM) said it had carried out a fresh wave of offensive strikes against Iran on July 12, targeting multiple locations to degrade Tehran’s ability to attack international shipping passing through the Strait of Hormuz.
The geopolitical tensions triggered a sharp rally in crude oil prices, with Brent crude climbing 15.91 per cent during the week to settle at $88.10 per barrel.
Despite the uncertainty, market sentiment received support from a strong start to the first-quarter earnings season and the Union Cabinet’s approval of two major manufacturing initiatives with a combined outlay of nearly Rs 1.9 lakh crore.
Several blue-chip companies announced their June quarter results during the week, including HCL Technologies, Tech Mahindra, Wipro, Reliance Industries and Jio Financial Services.
Technology stocks remained in focus after TCS shares rallied following its quarterly earnings, while Tech Mahindra gained after reporting an 8.2 per cent sequential rise in consolidated net profit to Rs 1,465 crore for the quarter ended June 30.
HCL Technologies also impressed investors after posting a 20.32 per cent year-on-year increase in consolidated net profit to Rs 4,624 crore in the first quarter of FY27.However, Dr. Reddy’s Laboratories remained under pressure for a second consecutive week after the pharmaceutical company said commercial supplies of its semaglutide product would be delayed due to an active pharmaceutical ingredient (API)-related quality issue.
Market volatility increased during the week, with India VIX rising 7.3 per cent as investors weighed geopolitical risks, elevated oil prices and the global interest rate outlook. (IANS)
