Sectoral Performance Today, July 31, 2026: Financials, Autos Lead Gains; IT Stocks Drag 

Mumbai, July 31: Indian equity benchmarks ended higher on Friday, extending their gains for a third consecutive session, as buying in financial, auto and select heavyweight stocks helped offset pressure from information technology and FMCG shares. The broader market also outperformed the frontline indices, with investors favouring domestic-facing sectors and stocks backed by strong quarterly earnings. 

The Nifty 50 gained 66.45 points, or 0.27%, to close at 24,383.60, while the Sensex rose 166.49 points, or 0.21%, to end at 78,094.64. Market breadth remained positive, with 2,444 shares advancing against 1,607 declining, while 185 stocks remained unchanged. 

Financials Gain As Bajaj Finance Surges 

Financial stocks were among the biggest contributors to the market’s advance, with the Nifty Financial Services index gaining around 1%. 

Bajaj Finance emerged as one of the day’s standout performers, with the stock gaining around 8% after the non-bank lender reported a strong June-quarter performance. The company’s quarterly profit came in above market expectations, while healthy loan growth and improving asset quality boosted investor confidence. 

The stock also received a lift from positive brokerage commentary following the results. Analysts highlighted the lender’s improving asset quality and expectations of sustained growth. The positive reaction to Bajaj Finance also supported sentiment across the broader financial services space. 

Bajaj Finserv and Jio Financial Services were among the other financial stocks that gained, while banking and financial names broadly benefited from continued optimism around domestic credit demand and corporate earnings. Bajaj Finserv rose over 6% after reporting a rise in June quarter profit and the board approving a plant to enter re-insurance business.  

Auto Stocks Extend Rally 

The Nifty Auto index advanced around 1.6%, making it one of the better-performing sectoral indices of the session. 

Mahindra & Mahindra gained around 3%, extending its rally into a second session after announcing that it aims to double EV capacity and reporting a rise in profit. The stock had also risen around 2% in the previous session, reflecting sustained buying interest following its earnings.  

Shares of Hyundai Motor India surged 8% as investors looked beyond a weak June-quarter performance and focused on the automaker’s new product pipeline, export recovery and FY27 outlook. 

The broader auto sector remained supported by expectations of healthy domestic demand and improving operating performance. Investors continued to focus on volume growth, margins and the outlook for passenger vehicles, utility vehicles and tractors as the earnings season progresses. 

Media, Energy Stocks Outperform 

The Nifty Media index emerged as the top sectoral gainer, rising around 2%, amid buying interest in media and entertainment stocks. 

The energy complex also performed well, with the Nifty Oil & Gas and Nifty Energy indices gaining around 1% each. The sector remained in focus amid movements in global crude prices and continued geopolitical uncertainty in the Middle East. 

The Nifty Pharma index advanced around 0.7%, while the Nifty Infrastructure index also gained 0.7%. The Nifty PSU Bank index rose around 0.5%, adding to the broad-based nature of the market advance. 

IT Stocks Retreat After Recent Rally 

Information technology stocks were the biggest drag on the market, with the Nifty IT index falling around 1.6%. 

TCS, Infosys and Wipro were among the major losers on the Nifty, while TCS and Infosys weighed on the benchmark due to their significant index weight. The sector’s decline came after a strong recent rally, prompting some investors to book profits. 

Indian IT stocks had benefited from shifting global investor preferences and optimism around technology earnings. However, the sector remained vulnerable to profit-taking after its recent gains, particularly as investors assessed global technology valuations and the broader outlook for artificial intelligence spending. 

The IT sector’s performance also continued to be influenced by developments in global technology markets, with investors watching U.S. technology earnings and the potential impact of AI-driven disruption on traditional IT services. 

FMCG Stocks Also Under Pressure 

The Nifty FMCG index declined around 1%, making it the second major sectoral drag after IT. 

Weakness in FMCG stocks came as investors continued to assess the outlook for rural demand, input costs and margins across consumer companies as the earnings season progresses. Varun Beverages declined almost 2% while Marico fell 1.7%. ITC declined 1.4%. 

Broader Markets Outperform 

The broader market outperformed the frontline indices, reflecting strong appetite for mid- and small-cap stocks. 

The Nifty Midcap 100 gained around 0.4%, while the Nifty Smallcap 100 rose around 0.4%. The positive performance of broader-market indices came alongside strong overall market breadth, with advancing stocks significantly outnumbering decliners. 

The divergence between the sectoral performance of IT and FMCG on one side and financials, autos and energy on the other highlighted the stock-specific nature of the market’s current rally. 

Overall, domestic equities ended higher for the third consecutive session, with financials and autos emerging as the key drivers of gains. The strong performance of broader markets and positive breadth indicated healthy risk appetite, while weakness in IT and FMCG stocks limited the upside in the benchmark indices. Investors will now track the ongoing earnings season, global market cues, foreign fund flows and sector-specific corporate developments for further direction. 

Source

• NSE