Nifty, Sensex Post Weekly Gains as IT and Financials Rally; Nifty Records Tightest Weekly Range of 2026

Authored By HDFC SKY | Published at: Jul 18, 2026 02:07 PM IST

Mumbai, July 18: Indian equity benchmarks ended the week on a strong footing, propelled by robust buying in information technology and financial stocks following upbeat quarterly results from Tech Mahindra and Jio Financial Services. The BSE Sensex surged 964.58 points, or 1.25%, to settle at 78,151.45, while the Nifty 50 climbed 261.55 points, or 1.09%, to close at 24,334.30.

For the week, the Sensex added 582.06 points, or 0.75%, while the Nifty advanced 127.4 points, or 0.52%. The rally was driven largely by domestic institutional investors rotating out of expensive mid- and small-cap stocks into attractively valued large-caps, particularly in the IT and banking sectors, offering a better risk-reward profile.

Nifty Trades in Narrowest 368-Point Weekly Band of 2026 Amid Consolidation

The benchmark index traded within a 368-point range between 24,000 and 24,368 throughout the week, marking its tightest weekly trading band so far in 2026, underscoring a period of market consolidation. Despite renewed Middle East tensions and elevated crude oil prices, markets held firm, aided by modest June-quarter revenue gains at IT firms and softer US inflation data that eased rate-hike worries. Nine of the 16 major sectors logged weekly gains. The Nifty IT sector added 4.3% during the week, helped by revenue growth from Tata Consultancy Services (TCS) and HCLTech, as well as softer US inflation.

Sensex Jumps 965 Points on Friday as Reliance and Bank Stocks Rally Ahead of Q1 Earnings

Friday’s session saw the Sensex jump 964.58 points to 78,151.45, while the Nifty surged to 24,334.30, as investors piled into heavyweight stocks ahead of their June-quarter earnings announcements. Reliance Industries gained 2.4% ahead of its Q1 results scheduled after market hours. The oil-to-telecom conglomerate also informed exchanges that its promoter group raised its stake to 50.48% in the June quarter from 50% earlier.

The financial index gained 1.3%, with Jio Financial Services surging 3.1% after reporting quarterly profit above market expectations. HDFC Bank and ICICI Bank rose 1.4% and 1.8%, respectively, ahead of their earnings announcements over the weekend, supported by positive business updates.

Tech Mahindra Jumps 4.1% After 28.4% Profit Rise to ₹1,465 Crore in June Quarter.

Technology stocks led the charge on Friday, with the Nifty IT index rising 1.8%. Tech Mahindra emerged as the top performer on the Nifty, surging 3.91% after it reported a 28.4% rise in consolidated net profit for the June quarter to ₹1,465 crore and expressed confidence about the demand environment. The company also reported better-than-expected quarterly revenue, which boosted investor sentiment across the IT pack. Tata Consultancy Services gained 9.7% for the week, marking its strongest weekly performance in nearly six years. The IT sector’s weekly gains were also aided by softer US inflation data, which sparked bottom-fishing after the sector’s sharp 23% year-to-date slide.

Kotak Mahindra Bank, Axis Bank Lead Private Bank Rally as Nifty Private Bank Index Jumps 2.12%

Banking and financial stocks shone brightly on Friday. The Nifty Private Bank index soared 2.12%, while the Nifty Bank index jumped 1.63% to 58,521.40. Kotak Mahindra Bank surged 3.37%, while Axis Bank gained between 1.5% and 2.5%. The banking rally was fuelled by expectations of healthy quarterly earnings from index heavyweights, including HDFC Bank, ICICI Bank, Kotak Mahindra Bank and Axis Bank, all scheduled to announce results over the weekend. The Nifty Auto index rose 1.24%, the Nifty Financial Services index gained 1.31%, and the Nifty Oil & Gas index advanced 0.99%. The Nifty Realty index climbed 1.38%, while the Nifty FMCG index added 0.70%.

Pharma Sector Sheds 1.4% as Novo Nordisk’s Wegovy Approval Intensifies Competition for Local Drugmakers

Defensive sectors remained under pressure. The Nifty Pharma index fell 1.40%, while the Nifty Healthcare index declined 1.28%. The sell-off was triggered after Novo Nordisk received approval from India’s drug regulator for its obesity drug Wegovy, used for the treatment of metabolic dysfunction-associated steatohepatitis (MASH), creating significant competition for local drugmakers like Dr Reddy’s Laboratories and Sun Pharmaceuticals.

Sun Pharma declined 0.87%, while Dr Reddy’s Laboratories ended as one of the top laggards in the Nifty 50. The Nifty Metal index also ended lower by 0.4%, dragged down by Hindalco Industries, which fell 1.58% to emerge as the biggest loser on the Nifty.

Midcap and Smallcap Indices Underperform as Nifty Midcap 100 Sheds 0.4%, Smallcap 100 Drops 0.2%

The broader market significantly underperformed the benchmarks, indicating continued profit booking in mid- and small-cap segments. The Nifty Midcap 100 fell 0.41%, while the Nifty Smallcap 100 slipped 0.21% on Friday. For the week, broader small-caps and mid-caps fell 0.6% and 1%, respectively, snapping their weekly winning streaks. This divergence reflects a shift in market momentum, with domestic institutional investors rotating out of expensive mid- and small-cap stocks and into more attractively valued large-caps.

Earlier in the week, on Monday, the Nifty Midcap 50 and Nifty Smallcap 50 indices had hit their respective lifetime highs, with the Nifty Smallcap 50 index hitting a fresh closing high of 9,638.20 and the Nifty Midcap 50 ending at a new high of 18,089.55. However, profit booking later in the week erased those gains.

Bharti Airtel, UltraTech Cement Among Top Losers; InterGlobe Aviation Gains 1.8% on Thursday

Stock-specific action remained mixed throughout the week. On Tuesday, Bharti Airtel ended as the top Nifty 50 gainer, while HCLTech led the losers as IT stocks remained under pressure. On Wednesday, UltraTech Cement closed 2.91% higher, followed by Eternal (2.80%) and HDFC Life Insurance Company (2.16%). Eternal, Shriram Finance and UltraTech Cement ended as the Nifty 50’s top gainers, while Power Grid, Hindalco and Infosys led the losers.