Sectoral View, July 17, 2026: IT, Private Banks Power Market Rally as Earnings Drive Stock Moves; Pharma Slips

Mumbai, July 17: Indian equities ended sharply higher on Friday, with gains led by information technology, private banks, automobiles and oil & gas stocks, as investors looked past weak global cues and focused on a busy June-quarter earnings season. Buying in heavyweight financial and technology names helped the benchmarks outperform most Asian markets despite elevated crude oil prices and geopolitical tensions in the Middle East.  

IT rises despite Wipro weakness 

The Nifty IT index climbed around 1.7%, emerging among the day’s best-performing sectoral indices as investors rewarded companies that delivered strong quarterly execution. 

Tech Mahindra was among the biggest gainers on the Nifty after reporting better-than-expected quarterly revenue, helped by robust deal wins. The upbeat results reinforced optimism that select IT companies continue to execute well despite a challenging demand environment.  

Heavyweights Tata Consultancy Services (TCS) and Infosys also advanced, lending further support to the sector. 

Wipro proved a drag, falling after missing June-quarter earnings estimates and issuing weaker-than-expected revenue guidance for the September quarter. Multiple brokerages trimmed their target prices. Even so, gains in larger peers outweighed the weakness, allowing the IT index to end firmly in the green.  

Financials surge ahead of heavyweight earnings 

Financial stocks were another major pillar of Friday’s rally. 

The Nifty Private Bank index rose about 2%, while the Nifty Bank index gained 1.6%, supported by optimism ahead of quarterly earnings from HDFC Bank and ICICI Bank, scheduled over the weekend. Investors were encouraged by the lenders’ business updates, which pointed to healthy loan and deposit growth.  

Kotak Mahindra Bank emerged among the top Nifty gainers, while HDFC Bank and ICICI Bank also advanced as investors positioned themselves ahead of the earnings announcements. 

Jio Financial Services rallied after the Reliance Group-backed NBFC reported a more than two-fold jump in June-quarter profit, driven by broad-based growth across lending, payments, insurance and asset management businesses. The stock was among the strongest performers in the financial space.  

Federal Bank also jumped after reporting robust quarterly earnings, with strong growth in net profit and net interest income, lower provisions and improving asset quality boosting investor confidence. 

Auto stocks gain despite pressure on tyre makers 

The Nifty Auto index advanced around 1.3%, supported by buying in leading passenger vehicle and two-wheeler manufacturers. 

However, tyre stocks remained under pressure following disappointing earnings. 

CEAT plunged after reporting a 96% year-on-year decline in June-quarter profit, as surging input prices squeezed margins despite healthy revenue growth. The sharp fall in profitability overshadowed the company’s strong revenue performance and weighed on sentiment.  

Oil & gas supported by Reliance 

The Nifty Oil & Gas index gained about 1%, aided primarily by Reliance Industries, which climbed ahead of its June-quarter earnings announcement after market hours. 

The stock also found support after the company disclosed that its promoter group’s holding had increased to 50.48% during the June quarter from 50% in the previous quarter. Investors are now awaiting management commentary on refining margins, telecom, retail and new energy businesses.  

Realty, FMCG extend gains 

The Nifty Realty index rose around 1.3%, reflecting optimism surrounding the domestic property market and borrowing costs. 

The Nifty FMCG index also edged higher by about 0.7%, supported by selective buying in large consumer staples companies as investors sought defensive exposure alongside cyclical sectors. 

Pharma, metals end in the red 

Not all sectors participated in the rally. 

The Nifty Pharma index fell 1.4%, making it the biggest sectoral loser of the day. Dr Reddy’s Laboratories and Sun Pharmaceutical Industries were among the major drags, while healthcare stock Max Healthcare also figured among the benchmark’s top losers. 

The Nifty Metal index slipped 0.4%, with Hindalco Industries leading losses. 

Earnings remain the key market trigger 

Friday’s session reinforced that the June-quarter earnings season remains the dominant driver of sectoral rotation. Strong results from Tech Mahindra, Jio Financial Services and Federal Bank lifted investor sentiment, while disappointing updates from Wipro and CEAT triggered stock-specific selling. 

Going into next week, investors will closely monitor earnings from Reliance Industries, HDFC Bank and ICICI Bank, with management commentary expected to shape sentiment across the IT, banking, energy and broader market sectors. 

Source

•  NSE