Last Updated on July 13, 2026 11:36 pm by BIZNAMA NEWS
AMN / BIZ DESK
Domestic equity benchmarks staged a resilient recovery on Monday, shaking off early morning jitters to close marginally higher. Despite escalating geopolitical tensions in the Middle East and a record-widening trade deficit, robust buying interest in Information Technology (IT) stocks provided the necessary ballast to steer the market into positive territory.
The Nifty 50 index, which had slipped to an intraday low of 24,000.20, mounted a spirited comeback to settle at 24,211, securing a gain of 4.10 points or 0.02%. Similarly, the S&P BSE Sensex advanced 47.04 points or 0.06%, ending the session at 77,616.40. While the headline indices managed to close in the green, market breadth remained balanced with 2,335 shares advancing against 2,068 declines on the BSE.
The IT Engine
The day’s standout performer was undeniably the IT sector, which served as the primary catalyst for the recovery. The Nifty IT index rallied 3.59%, marking its second consecutive session of significant gains. The surge was led by bellwether Tata Consultancy Services (TCS), which jumped 5.51%, followed closely by HCL Technologies (up 5.15%) and Infosys (up 3.24%).
Investor optimism in the sector appeared bolstered by strong earnings announcements, including LTM (formerly LTIMindtree), which reported a 5.86% quarter-on-quarter increase in consolidated net profit.
Conversely, heavyweights acted as a drag on the broader market. Reliance Industries, HDFC Bank, and Bharti Airtel each ended in the red, weighing on the indices and preventing a more significant rally. Meanwhile, the India VIX—a key indicator of market anxiety—surged 8.38% to 13.28, reflecting heightened caution as participants digested global headlines.
Macro Headwinds and Geopolitical Tensions
Beyond corporate earnings, investors had to contend with sobering macroeconomic data. India’s merchandise trade deficit hit a record $30.43 billion for the month of June 2026. This widening gap was driven by a 31% surge in imports, fueled by rising crude oil prices and additional costs related to US tariffs on Russian oil. Exports, while positive, grew at a more modest pace of 15.5%.
The geopolitical landscape remains fraught with uncertainty. Over the weekend, exchanges of airstrikes between Iran and the US rattled global nerves, specifically regarding the potential impact on the Strait of Hormuz. While US officials have maintained that commercial shipping routes remain open, Brent crude oil prices reacted sharply, climbing 3.07% to $78.34 a barrel. This, combined with a weakening rupee (which hovered at 95.67 against the dollar), prompted a cautious stance in the debt markets, with the 10-year benchmark yield rising to 6.735%.
Broader Market Action and Earnings
The earnings season remained a focal point, driving sharp stock-specific movements. Just Dial stole the spotlight by hitting its 20% upper circuit after reporting a 66.2% jump in net profit, while Fino Payments Bank surged 19.64% on the back of healthy deposit growth. Additionally, L&T Finance and 63 Moons Technologies saw positive investor responses following robust quarterly performance updates.
In the small-cap segment, the Laser Power & Infra IPO continued to attract strong interest, subscribed 38.76 times on its final day of bidding.
Global Outlook
The domestic mood stood in contrast to most Asian markets, which ended lower as investors assessed the fallout of the weekend’s geopolitical developments. However, European markets opened on a firmer note, and Wall Street’s positive close on Friday provided a degree of comfort. Looking ahead, global investors are shifting their focus to the United States, where a slew of major banking giants—including JPMorgan Chase and Goldman Sachs—are slated to report earnings this week. These results are expected to serve as a bellwether for the health of the US economy and set the tone for global risk appetite.
As the week progresses, market participants are expected to remain hyper-focused on quarterly scorecards and further developments in the Middle East, balancing the optimism of growth with the reality of persistent macroeconomic and geopolitical pressures.