Indian Stock Markets End Week Higher On Strong Q1 Earnings Despite Global Uncertainties

Indian stock markets delivered modest gains over the week as strong corporate earnings and supportive government measures helped offset concerns arising from geopolitical developments overseas.

Although investors remained watchful of the situation in the Middle East and the sharp rise in oil prices, domestic equities recovered from the previous week’s decline.

The benchmark indices ended the week with positive returns. The Nifty rose by 127.4 points, or 0.5 per cent, while the Sensex added 582.06 points, or 0.8 per cent, reversing the losses recorded a week earlier.

Market participants remained cautious after the US Central Command (CENTCOM) launched another round of military strikes against Iran on 12 July.

The operation targeted several sites to reduce Tehran’s ability to threaten international shipping through the Strait of Hormuz.

The developments triggered a rally in global oil prices, with Brent crude advancing 15.91 per cent during the week to settle at $88.10 a barrel, raising fresh concerns about inflation and economic growth.

A robust start to the June quarter earnings season helped strengthen investor confidence despite global uncertainties.

Sentiment also improved after the Union Cabinet approved two large-scale manufacturing initiatives with a combined investment of nearly ₹1.9 lakh crore.

Corporate Earnings

Several major companies released their quarterly earnings during the week, including Reliance Industries, HCL Technologies, Tech Mahindra, Wipro and Jio Financial Services.

Technology shares attracted buying interest after TCS reported its financial results. Tech Mahindra also advanced after posting an 8.2 per cent sequential increase in consolidated net profit to ₹1,465 crore for the quarter ended 30 June.

HCL Technologies impressed investors by reporting a 20.32 per cent year-on-year rise in consolidated net profit to ₹4,624 crore in the first quarter of FY27.

Dr Reddy’s Laboratories remained under pressure for another week after announcing that quality issues related to an active pharmaceutical ingredient (API) would delay commercial supplies of its semaglutide product.

At the same time, investor nervousness pushed the India VIX up by 7.3 per cent, reflecting growing concerns over geopolitical risks, elevated energy prices and the future direction of global interest rates.

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