Daily Market Update - 31st July 2026 by Ventura Securities Ltd
Market Outlook:
Indian equity markets are expected to open on a positive note, with Gift Nifty indicating a gain of 0.26% (64 points), supported by strong global cues. Overnight, US markets rallied sharply, with the S&P 500 gaining 1.67%, the Dow Jones rising 1.19%, and the Nasdaq surging 3.36%, reflecting improved global risk appetite. However, domestic market breadth remained weak, with the NSE advance-decline ratio at 1,326:1,973 and the BSE at 1,601:2,630, indicating that declines continued to outnumber advances. Investors are likely to remain focused on earnings, institutional flows, and global market trends, with stock-specific action expected to remain important.
FII and DII Activity:
Institutional flows turned supportive, with Foreign Institutional Investors (FIIs) emerging as net buyers of approximately ?3,624 crore, indicating a meaningful return of foreign buying interest. In contrast, Domestic Institutional Investors (DIIs) were net sellers with outflows of around ?1,864 crore. The sharp FII buying provides a positive signal for market sentiment, although the reversal in DII flows warrants monitoring to assess whether the trend sustains over the coming sessions.
Sector Activity:
Sectoral performance remained mixed, with Nifty Energy (+0.4%), Nifty Oil & Gas (+0.5%), Nifty Consumer Durables (+0.3%), and Nifty IT (+0.2%) showing resilience. However, Nifty Realty declined 2.1%, Nifty Auto fell 1.6%, and Nifty Chemicals declined 1.2%, reflecting continued weakness in select cyclical segments. At the stock level, Whirlpool (+2.55%) and Coforge (+1.87%) supported Consumer Durables and IT, while Prestige (-4.90%), Sona Comstar (-1.32%), and PCBL (-10.61%) weighed on Realty, Auto, and Chemicals respectively.
Long, Short, Long Unwinding & Short Covering:
Derivative positioning indicates selective bullish activity alongside stock-specific caution. Fresh long build-up was seen in Sona Comstar, Swiggy, Oil India, GVT&D, and Alkem Laboratories, suggesting increased buying interest in these counters. Fresh short positions emerged in KPIT Technologies, Waaree Energies, Prestige Estates, Premier Energies, and Colgate-Palmolive, indicating bearish positioning in these stocks. Long unwinding was visible in Glenmark, GMR Airports, Motilal Oswal Financial Services, Godrej Properties, and PNB Housing Finance, while short covering emerged in Hero MotoCorp, TVS Motor, Godfrey Phillips, and Force Motors, pointing to selective recovery in these counters.
Top 5 News Highlights:
Swiggy reported a strong Q1FY27 operating performance, with revenue increasing 37% YoY and Instamart gross order value growing around 40%.
Global Health – Medanta posted a 34% YoY rise in Q1FY27 net profit to ?67 crore, with revenue growing 23.5%.
Pricol reported Q1FY27 revenue growth of 26.5% YoY, while EBITDA increased 26.3%, maintaining margins around 22%.
Aarti Industries delivered a strong Q1FY27 performance, with net profit surging 260.5% YoY and revenue rising 42.4%, supported by significant operating leverage.
Bajaj Finance reported a 28% YoY increase in consolidated Q1FY27 net profit to ?6,081 crore, supported by strong loan growth and higher net interest income.
Overall, strong global cues and the return of FII buying provide a constructive setup for Indian equities, although weak domestic breadth and pressure in Realty, Auto, and Chemicals suggest that the market may remain selective. Investors should monitor whether FII buying sustains and focus on companies delivering strong earnings and improving operating performance.
SMS subject to Disclosures and Disclaimer goo.gl/8bCMyQ
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