Stock Market: IT Stocks Support the Rally; Market Gains on FII Buying and Other Positive Factors

Strong Q1 Business Updates Boost Investor Confidence

Several leading private sector banks have reported strong business updates for the first quarter (Q1), improving overall market sentiment. Major lenders such as HDFC Bank and Axis Bank have posted encouraging growth figures.

HDFC Bank reported that its gross advances (total loans) increased by 15.4% year-on-year to ₹30.61 lakh crore as of June 2026, compared to ₹26.53 lakh crore a year earlier. The bank's total deposits also rose by 14.7%, reaching nearly ₹31.7 lakh crore, up from ₹27.64 lakh crore in the previous year.

Following the strong update, HDFC Bank shares have gained more than 5% over the last three trading sessions.

Continuous Buying by Foreign Institutional Investors (FIIs)

Foreign Institutional Investors (FIIs) have returned as net buyers in the Indian equity market, providing additional support to market sentiment.

• On 6 July, FIIs purchased shares worth ₹243 crore.
• On 3 July, FIIs had invested ₹1,355 crore in Indian equities.

The return of foreign investment has strengthened investor confidence and contributed to the market's upward momentum.

Stable Crude Oil Prices Provide Relief

Crude oil prices remained relatively stable amid easing geopolitical tensions.

Brent Crude was trading around US$72.51 per barrel with marginal gains. Since India imports a significant portion of its crude oil requirements, stable oil prices are considered positive for the country's economy and corporate earnings.

IT Stocks Lead the Market Rally

The Information Technology (IT) sector emerged as the biggest contributor to today's market gains.

The Nifty IT Index surged 2.60% to 27,984.30, supported by strong buying in leading technology companies. While several other sectoral indices traded in the red, the strength in IT stocks helped both the Sensex and Nifty remain firmly in positive territory.

Market Outlook

Market experts believe that improving corporate earnings expectations, continued foreign investment, and stable global economic conditions are supporting the ongoing rally. Investors will continue to monitor upcoming quarterly earnings, macroeconomic data, and global market developments for further direction.

Disclaimer

The information provided above is for educational and informational purposes only and should not be considered investment advice. Investments in the stock market are subject to market risks. Investors should consult a qualified financial advisor before making any investment decisions.