Closing Bell: Nifty Reclaims 24,250 as IT Rallies for Third Straight Day and FIIs Turn Net Buyers

29 Jul 2026 , 06:14 PM

Indian benchmark indices surged on July 29, 2026, with Nifty jumping 264.85 points to 24,250.20 and Sensex soaring 888.68 points to 77,654.60, as IT stocks extended their rally for a third consecutive session ahead of the Fed’s rate decision. Infosys gained over 4% after Jefferies upgraded the Indian IT sector, while broad-based buying across Metals, FMCG, and Pharma lifted sentiment further. Renewed FII inflows of ₹755 crore and a falling India VIX added to the upbeat mood, even as Adani Ports and M&M saw profit booking after strong earnings and restructuring news.

Market Overview: Nifty, Sensex, and Bank Nifty Performance

• Nifty 50 closed at 24,250.20 up 264.85 points (1.10%)
• Sensex ended at 77,654.60, up 888.68 points (1.16%)
• Nifty Bank settled at 57,205.90, up 450.30 points (0.79%)

Top Gainers Today

1. Jio Financial Services Limited – closing at 248.75 up by 4.92%

2. Hindustan Unilever Limited – closing at 2,120.00 up by 4.81%

3. Hindalco Industries Limited – closing at 964.00 up by 2.95%

4. Tata Steel Limited – closing at 187.50 up by 2.67%

Top Losers Today

1. Power Grid Corporation of India Limited – closing at 283.40 down by 0.67%

2. Eicher Motors Limited – closing at 7,796.00 down by 0.51%

 

Trending stocks Today

1. Infosys Limited –

• Closed at ₹1,153.50, up 4.32%

⮚ Jefferies’ Upgrade Boosted Investor Confidence: Global brokerage Jefferies upgraded the Indian IT sector to ‘Neutral’ from ‘Underweight’ and added Infosys to its India Model Portfolio, improving sentiment towards the stock.

⮚ Rotation into Indian IT Stocks Supported Buying: Investors shifted funds into Indian IT services companies amid a sharp selloff in Asian semiconductor stocks, viewing Infosys as a relatively safer play with limited direct exposure to chip manufacturing.

⮚ Improving AI Sentiment Favoured IT Services: Easing concerns over the AI-driven technology trade and expectations of sustained global technology spending supported demand for Indian IT companies, benefiting Infosys.

⮚ Broad-Based Rally in the IT Sector Lifted the Stock: Strong buying across the Nifty IT index, backed by positive brokerage commentary and improving sector sentiment, helped Infosys emerge as one of the top gainers during the session.

2. Adani Ports and Special Economic Zone –

• Closed at ₹1,721.00, down 3.03%

⮚ Profit Booking Despite Strong Q1 FY27 Results: Although total income rose 23.9% YoY to ₹11,673.71 crore and net profit increased 10.2% YoY to ₹3,649.50 crore, investors booked profits after the results, as the strong performance was largely priced into the stock.

⮚ Market Focused on Valuation After Recent Rally: APSEZ had witnessed a strong run-up ahead of its earnings announcement, prompting investors to lock in gains despite healthy operational performance and earnings growth.

⮚ Mixed Impact from Domestic Logistics Business: While international ports and marine operations delivered strong growth, the company highlighted that Middle East geopolitical tensions continued to affect domestic container rail volumes, limiting overall investor enthusiasm.

⮚ Long-Term Growth Outlook Remained Positive: The company’s expanding global port operations, strategic investments in Vizhinjam Port and warehousing infrastructure, along with S&P’s credit rating upgrade to ‘BBB’ with a Stable outlook, reinforced confidence in its long-term growth prospects despite the day’s decline.

3. Mahindra & Mahindra Limited –

• Closed at ₹3,228.00, down 1.32%

⮚ Business Restructuring Triggered Investor Caution: M&M announced the sale of its Truck and Bus Division to SML Mahindra for ₹525 crore, prompting investors to assess the near-term impact of the restructuring despite its strategic rationale.

⮚ Profit Booking Followed the Announcement: The stock witnessed selling as investors booked profits after the restructuring announcement, even though the move is aimed at simplifying the group’s commercial vehicle business.

⮚ Near-Term Earnings Impact Remained in Focus: The transferred Truck and Bus Division generated ₹2,989 crore in revenue during FY26, leading some investors to remain cautious about the short-term financial impact while awaiting benefits from the new structure.

⮚ Long-Term Strategic Benefits Remained Intact: Management stated that consolidating truck and bus operations under SML Mahindra is expected to create a stronger commercial vehicle business through better scale, broader market reach, operational efficiencies, and an enhanced product portfolio, supporting long-term growth despite the stock’s decline.

Sectoral Performance Index

Indices	Change
Nifty IT	2.32%
Nifty Metal	2.31%
Nifty FMCG	1.66%
Nifty Pharma	1.44%
Nifty Media	1.43%
Nifty Consumer Durables	1.43%
Nifty Private Bank	1.03%
Nifty Financial Services Ex-Bank	1.01%
Nifty Chemical	0.98%
Nifty Infrastructure	0.67%
Nifty Cement	0.60%

 

Sectoral Performance & Key Reasons

Sectoral performance remained broadly positive on 29 July 2026, driven by strong buying across sectors as investors cheered expectations that the US Federal Reserve would keep interest rates unchanged, improving FII inflows, and easing market volatility. Nifty IT (+2.32%) led the gains for the third consecutive session, supported by continued buying in Infosys, TCS, HCL Tech, Tech Mahindra, Coforge, and Persistent Systems, as investors rotated into Indian IT companies amid the global AI and semiconductor selloff. Metal (+2.31%), FMCG (+1.66%), Pharma (+1.44%), Media (+1.43%), and Consumer Durables (+1.43%) also witnessed strong buying on improving market sentiment, healthy corporate earnings, and broad-based participation. Meanwhile, Private Banks (+1.03%), Financial Services Ex-Bank (+1.01%), Chemical (+0.98%), Infrastructure (+0.67%), and Cement (+0.60%) advanced as the return of FII buying, lower India VIX, and expectations of stable global interest rates boosted investor confidence across domestic equities.

Main Reasons for Stock Market Down Today

1. Strong Rally in IT Stocks Lifted the Benchmark Indices

The Nifty IT index extended its three-day rally, led by gains in Infosys, TCS, HCL Tech, Tech Mahindra, Coforge, and Persistent Systems. Investors continued rotating into Indian IT companies as they are viewed as relatively insulated from the global AI-driven semiconductor selloff, providing significant support to the Sensex and Nifty.

2. Expectations of a Status Quo by the US Federal Reserve Boosted Sentiment

Investor confidence improved as markets widely expected the US Federal Reserve to keep interest rates unchanged. Stable rate expectations reduced concerns over tighter global financial conditions and encouraged buying in equities ahead of the Fed’s policy announcement.

3. Return of FII Buying Improved Market Confidence

Foreign Institutional Investors (FIIs) turned net buyers, purchasing Indian equities worth ₹755 crore after several sessions of selling. The return of foreign inflows strengthened market sentiment and supported broad-based buying across sectors.

4. Decline in India VIX Indicated Lower Market Volatility

The India VIX, the market’s fear gauge, declined by over 3%, signalling easing volatility and improving investor confidence. Lower volatility encouraged investors to increase exposure to equities, supporting the market rally.

5. Broad-Based Buying Across Sectors Offset Global Concerns

Apart from IT, buying was seen in FMCG, Metals, Auto, Financial Services, and Consumer Durables, while the mid-cap and small-cap indices also advanced, indicating broad market participation. Despite higher crude oil prices and ongoing geopolitical tensions, investors remained focused on corporate earnings, improving domestic sentiment, and expectations of stable global interest rates.

 

Summary–

Indian benchmark indices rallied sharply on 29 July 2026, with the Sensex surging nearly 900 points and the Nifty 50 reclaiming the 24,250 marks, supported by sustained buying in IT stocks, renewed FII inflows, easing market volatility, and expectations that the US Federal Reserve would keep interest rates unchanged. Broad-based buying across sectors further strengthened market sentiment.

• IT emerged as the top-performing sector for the third consecutive session, led by Infosys, TCS, HCL Tech, and Tech Mahindra, as investors rotated into Indian IT companies amid the global AI and semiconductor selloff. Metals, FMCG, Pharma, Media, Consumer Durables, and Financials also witnessed healthy buying, reflecting broad-based participation.

• Positive domestic sentiment was further supported by ₹755 crore of FII buying, a decline in the India VIX, and optimism over stable global interest rates. Despite higher crude oil prices and geopolitical uncertainties, investors remained focused on strong corporate earnings and improving risk appetite.

With the Nifty 50 closing at 24,250.20, up 264.85 points (1.10%), the Sensex ending at 77,654.60, up 888.68 points (1.16%), and the Nifty Bank settling at 57,205.90, up 450.30 points (0.79%), the day’s trade reflected broad-based optimism as strong IT buying, foreign inflows, and expectations of a stable Fed policy drove the market higher.