Sectoral Watch, July 9, 2026: Realty Jumps 3.5%, PSU Banks Rally, IT Slips as TCS Earnings Loom 

Mumbai, July 9: Sectoral indices ended mostly higher on Thursday as investors returned to beaten-down stocks following the previous session’s sharp sell-off, with real estate, banking and media shares leading the recovery. The rebound came despite elevated crude oil prices and lingering geopolitical tensions in the Middle East, while information technology stocks remained under pressure ahead of the June-quarter earnings season.

Buying was broad-based across the market, with 14 of the 16 major sectoral indices ending in positive territory. The strength in domestic-facing sectors helped benchmark indices recover part of Wednesday’s losses, while broader markets outperformed the frontline gauges. Bargain hunting and continued foreign institutional buying helped cushion sentiment even as investors remained cautious about geopolitical risks and rising oil prices.

Realty Stocks Spearhead Partial Rebound

The Nifty Realty index emerged as the biggest sectoral gainer, soaring 3.5% as investors lapped up property stocks after Wednesday’s correction. The rally was led by Lodha Developers, Brigade Enterprises, Anant Raj, and Aditya Birla Real Estate.

The sector benefited from bargain hunting after recent weakness, with investors betting that healthy residential demand and robust project launches could continue to support earnings despite a volatile global backdrop.

PSU Banks, Financials Attract Buying

Banking shares also contributed to the market’s recovery, with the Nifty PSU Bank index rising 1.6%. Public sector lenders including State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda, Canara Bank and Union Bank of India witnessed broad-based buying.

Private-sector lenders also lent support to the benchmarks. HDFC Bank and Kotak Mahindra Bank ended higher as investors returned to large-cap financials following Wednesday’s sharp correction.

Foreign institutional investors remained net buyers of Indian equities, helping support financial stocks despite uncertainty over rising crude oil prices and geopolitical tensions.

Media, Consumer Durables Outperform

The Nifty Media index climbed 2%, making it the second-best performing sector of the day.

Stocks such as PVR INOX, Saregama India, Sun TV Network and Tips Music witnessed healthy buying interest as investors rotated into domestic consumption themes.

The Nifty Consumer Durables index also gained 1.6%, supported by advances in Kalyan Jewellers India, Voltas, Blue Star and Dixon Technologies. The gains reflected optimism over resilient urban demand.

Pharma resilient despite Dr Reddy’s slide

Healthcare stocks remained relatively strong as investors sought defensive sectors amid persistent geopolitical uncertainty.

Sun Pharmaceutical Industries emerged as the top gainer on the Nifty50, rising 2.6%, while Cipla, Lupin, Torrent Pharmaceuticals and Aurobindo Pharma also traded higher.

However, Dr Reddy’s Laboratories bucked the trend, tumbling 5.9% after the company delayed commercial supplies of its semaglutide product because of quality concerns related to its active pharmaceutical ingredient (API).

The sharp fall in Dr Reddy’s shares weighed on the broader pharmaceutical pack, though gains in other healthcare names limited the impact.

IT under pressure ahead of TCS results

Information technology was a major weak pocket of the market.

The Nifty IT index declined 0.47%, with heavyweight Tata Consultancy Services (TCS) slipping ahead of its June-quarter earnings announcement later in the day.

Other frontline IT stocks, including Infosys, Tech Mahindra, also traded lower as investors awaited management commentary on demand trends, discretionary spending and deal wins.

Concerns over global economic uncertainty and slowing enterprise technology spending continued to keep investors cautious on the sector.

Broader Markets Outperform

The rally extended beyond benchmark stocks, with the Nifty Midcap 100 climbing 1.4% and the Nifty Smallcap 100advancing 1.8%, reflecting renewed appetite for risk after Wednesday’s sell-off.

Positive market breadth underscored the strength of the recovery, with 2,793 stocks advancing, 1,263 declining and 167 remaining unchanged on the NSE.

While Thursday’s rebound improved sentiment, investors are expected to remain focused on three key triggers in the coming sessions: the June-quarter earnings season led by TCS, movements in global crude oil prices and developments in the Middle East. Those factors are likely to determine whether leadership remains with domestic cyclical sectors such as realty and banking or shifts back to defensives if geopolitical risks intensify.

Source:

• NSE