Indian Market In July: ₹84,084-Crore Samudra Manthan Scheme Announced, India’s Gold Demand Fell 6% YoY & More! 

Indian markets saw sustained momentum in July, with both Nifty 50 and Sensex closing in the green for the second month in a row.

A robust corporate earnings season reignited market sentiment, sparking rallies. Globally, flare-ups in Middle East geopolitical tensions and volatile crude oil movements acted as a persistent check on broader market gains.

Let’s take a closer look at everything that shaped the markets in the month that went by:

Sector Radar

• Nifty IT: Stronger-than-expected Q1 earnings commentary, short-covering, and heavy sector rotation into large-cap tech heavyweights drove a massive relief rally.
• Nifty Consumer Durables: Easing input material costs alongside robust urban discretionary spending significantly boosted margin expectations for appliance and electronics makers.
• Nifty Media: Solid growth in digital ad spending and renewed optimism around industry consolidation spurred strong buying interest across the sector.

• Nifty Energy: Choppy global crude oil movements and shrinking gross refining margins (GRMs) triggered profit-taking in major oil and gas counters.
• Nifty PSU Bank: Rising cost of funds and slight compression in net interest margins (NIMs) prompted investors to lock in profits after previous strong rallies.
• Nifty Private Bank: Continued FII portfolio rebalancing and lingering concerns over elevated credit-to-deposit ratios kept private banking stocks range-bound with a negative bias.

Precious Metals

Corporate Moves

ITC₹286.95 -0.71%

The FMCG major’s revenue from operations in the June quarter came in at ₹29,523.30 crore, up 27.6% year-on-year from ₹23,129.35 crore. However, profit for the period fell 15.6% year-on-year to ₹4,508.79 crore, down from ₹5,343.41 crore, primarily impacted by a significant increase in total expenses and excise duty costs.

MARUTI₹14,190.00 +0.16%

Maruti Suzuki accounted for a record 55.5% of India’s passenger vehicle exports in Q1FY27, exporting 123,330 vehicles, up 28.2% YoY, and shipping more vehicles than all other domestic passenger vehicle makers combined.

ADANIENT₹3,050.00 0.00%

Adani Enterprises Ltd announced a joint venture with Abu Dhabi-based International Resources Holding (IRH), an IHC group company, to develop an $11.5-billion integrated aluminium plant in Odisha.

ONGC₹240.20 -0.74%

The state-owned oil & gas company has approved the expansion of India’s strategic oil reserves by adding 1.75 million tonnes of storage capacity in Mangaluru, Karnataka. India is a major importer of crude oil and the company aims to strengthen energy resilience.

DIXON₹14,310.00 +2.30%

The electronics manufacturing services firm posted a consolidated net profit of ₹663.42 crore in the first quarter ended June 30, 2026, about triple that of ₹224.97 crore posted about a year ago. Its consolidated revenue from operations stood at ₹15,547.66 crore, compared to ₹12,835.66 crore a year ago.

Macro View

Zooming out to key rates and trends driving India’s economic story

• As per a report by the World Gold Council, India’s gold demand fell 6% year-on-year to 131.4 tonnes in the April-June quarter, weighed down by seasonally subdued sales, higher customs duty and the Prime Minister’s appeal to reduce purchases of the precious metal.
• India’s crude oil import bill during Q1 FY27 rose to almost $50 billion, the highest on record for the period, as the West Asia conflict disrupted supplies sending prices of the geo-politically sensitive commodity soaring in April.
• The Union Cabinet approved a ₹84,084-crore Samudra Manthan scheme aimed at accelerating oil and gas exploration in India’s offshore basins and reducing dependence on energy imports. The government expects the initiative to help add more than 600 million metric tonnes of oil equivalent (MMTOE) to hydrocarbon reserves, increase domestic oil and gas output, generate employment and encourage investments across the exploration and production value chain.
• The Union Cabinet also approved the Pradhan Mantri Surya Sarovar Yojana (PM-SSY), a ₹5,070-crore scheme aimed at significantly expanding India’s floating solar power capacity with integrated battery energy storage systems.

Global Updates

Headlines and important updates from around the world

• Samsung Electronics reported a 19-fold jump in second-quarter operating profit, exceeding its combined earnings from the past three years, driven by the AI-led memory chip boom.
• Indonesia implemented its 50% biodiesel blending mandate (B50), raising the required palm oil-based diesel blend from 40% to 50% as part of its push for energy independence.
• India allowed four Chinese power equipment manufacturers with local manufacturing facilities TBEA Energy, Nanjing Electric India, New Northeast Electric India, and Taikai Electric (India)- to participate in government tenders for critical power projects, as per a Finance Ministry order dated June 24.
• Brent crude climbed above $88 per barrel towards the end of the month, with more than a 20% monthly gain, as escalating U.S.-Iran tensions renewed fears of disruptions to Middle Eastern oil supplies. Prices remained elevated despite an improvement in tanker traffic through the Strait of Hormuz.

FII vs DII Trends

Tracking India’s evolving market ownership trends

July witnessed a dramatic cooling of foreign capital outflows alongside sustained domestic accumulation, reinforcing the ongoing structural transition in market custody.

FII Activity: Foreign Institutional Investors remained net sellers for the seventh consecutive month, though selling momentum decelerated sharply sequentially by 88.2% to -₹5,778.99 crore.

DII Activity: Domestic Institutional Investors maintained their persistent buying streak, infusing 35,099.25 crore, a 59.1% MoM moderation following June’s peak deployment, reflecting disciplined capital allocation.

The DII-to-FII absorption ratio surged to a commanding 6.07x, yielding a net institutional surplus of 29,320.26 crore.

IPOs In The Spotlight

Reliance’s Telecom Bet Is About to Become India’s Biggest IPO

IPO Watch

Mainboard IPOs — Companies That Went Public (Market Cap > ₹1,000 Cr)

That’s a wrap for July!

From sector moves to macro trends and market risks, we’ve covered what mattered.

See you next month. Till then, stay informed and invest intelligently with Share.Market.