Indian stock market: The Indian stock market ended sharply higher on Friday, July 10, with broad-based buying lifting benchmark indices by over 1% each, while mid- and small-cap stocks outperformed amid supportive global cues.
The rally marked the second straight session of gains, with the Sensex surging 828 points, or 1.08%, to close at 77,569.39. The Nifty 50 also advanced 244 points, or 1.02%, to settle at 24,206.90.
Stock Market Outlook next week
According to Ponmudi R, CEO – Enrich Money, investor attention in the week ahead is expected to remain firmly focused on the ongoing negotiations between the United States and Iran, as markets closely monitor developments following the recent escalation in geopolitical tensions.
“Although diplomatic efforts continue, uncertainty remains elevated after the latest military strikes, keeping investors cautious. Any meaningful progress in the negotiations could improve global risk sentiment and support financial markets, while any further escalation or breakdown in talks could heighten volatility and weigh on investor confidence.
On the domestic front, investor focus will increasingly shift to the first-quarter earnings season, with the technology sector expected to remain in the spotlight following Tata Consultancy Services’ better-than-expected results. Attention will now turn to another IT heavyweight, HCL Technologies, which is scheduled to announce its quarterly earnings on Monday, July 13,” said Ponmudi.
Top 5 triggers for the Indian stock market
1] Q1 results FY27
The earnings season has officially begun, with Tata Consultancy Services (TCS) becoming one of the first companies to announce its June quarter earnings.
Nearly 100 companies are set to report their financial results for the quarter ended June 30, 2026. Major firms such as HCL Tech, Groww, Wipro, and Jio Financial Services are among the prominent names slated to announce their Q1 FY27 earnings next week.
“The Q1 FY27 earnings season will gather pace, with management commentary expected to play a pivotal role in shaping sectoral trends and earnings expectations,” said Ajit Mishra – SVP, Research, Religare Broking.
2] US-Iran war
The United States carried out its third round of strikes on Iran this week after Tehran announced the closure of the Strait of Hormuz “until further notice.”
According to the US Central Command, President Donald Trump authorised the latest strikes, which were aimed at curbing Iran’s capability to target commercial shipping, following an attack by Iranian forces on a Cyprus-flagged container vessel.
Iranian state media reported explosions across several locations along the country’s southern coastline, including the key energy and petrochemical centres of Bushehr and Asalouyeh. Explosions were also reported in the port cities of Bandar Abbas and Bandar-e Dayyer, as well as in the Sirik region near the Strait of Hormuz.
Iranian Foreign Minister Abbas Araghchi arrived in Oman on Saturday for discussions on the future of the Strait of Hormuz, though there were no indications that senior US officials would participate.
Earlier, Iran insisted that the United States fulfill key commitments under a recent agreement before any further negotiations, dismissing President Donald Trump’s claim that talks could proceed without a ceasefire. Tehran said Washington must satisfy its conditions for addressing transit through the Strait of Hormuz and restoring normal oil exports.
3] Crude oil prices
Oil prices declined after indications emerged that the US and Iran are likely to continue diplomatic talks despite renewed attacks that tested their ceasefire and disrupted tanker movement through the Strait of Hormuz.
US benchmark West Texas Intermediate (WTI) crude dropped 0.9% to settle at around $71 per barrel, though it still posted a weekly gain of about 4%. Brent crude also ended lower, settling near $76 per barrel.
“Globally, developments surrounding the Iran–US conflict and their impact on crude oil prices will remain key monitorables,” said Mishra.
Crude briefly recovered some losses before turning lower again after US President Donald Trump said in a social media post that “in no uncertain terms… the Cease Fire is OVER!” He, however, also confirmed that discussions between the two sides would continue.
The sharp swings in oil prices this week were mirrored in WTI’s prompt spread, which measures the price difference between its two nearest futures contracts. The spread shifted from contango, indicating ample supply, to backwardation, a market structure that signals tighter supply.
4] FII activity
Foreign Institutional Investors (FIIs) stayed net buyers during most trading sessions, with total net inflows of around ₹4,670 crore for the week. The sustained foreign buying signalled improving investor sentiment as crude oil prices eased from recent peaks and global risk appetite improved despite ongoing geopolitical concerns.
Domestic Institutional Investors (DIIs) also remained strong supporters of the market, registering net inflows of nearly ₹8,275 crore during the week. Consistent domestic buying helped offset periodic profit booking and provided stability to benchmark indices amid elevated market volatility.
“Foreign investors have gradually turned constructive amid improving global conditions, continued domestic institutional support remains a key pillar underpinning market stability and is likely to provide support to equities in the near term,” Ponmudi of Enrich Money added.
5] Rupee vs Dollar
The Indian rupee appreciated by 9 paise to close at 95.38 against the US dollar on Friday, supported by a weaker greenback and softer crude oil prices, even as uncertainty over peace in West Asia persisted.
Forex traders said upbeat sentiment in domestic equity markets also lent support to the local currency.
In the interbank foreign exchange market, the rupee opened at 95.27 against the US dollar and moved between 95.22 and 95.42 during the session before ending at 95.38, marking a gain of 9 paise over its previous close.
“The Indian rupee weakened during the week, extending its losses beyond the ₹95 mark to settle near ₹95.37 against the U.S. dollar, reversing its recent recovery as renewed geopolitical tensions and safe-haven demand for the greenback weighed on the domestic currency. Technically, the rupee has come under fresh pressure after the USD/INR pair rebounded from the key long-term support zone around ₹94.3,” said Ponmudi.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
