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Below the Quote on Daily Market Commentary for July 31st 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities are expected to trade with a positive bias as healthy domestic macros, and a strong Q1FY27 earnings season continue to support investor confidence. Market participants will closely monitor RBI's monetary policy decision, India's Manufacturing and Services Purchasing Managers' Index (PMI) data, along with developments in crude oil prices and geopolitical tensions in West Asia next week. The ongoing Q1FY27 earnings season is expected to continue driving stock-specific action. Key earnings over the weekend include Divi's Laboratories, APL Apollo Tubes, CDSL, AU Small Finance Bank, Persistent Systems, among others. Domestic markets extended its winning streak for the third consecutive session. Nifty 50 advanced 1.9% this week and closed at 24,384 on Friday with 0.3% gains. The rally was driven by strong quarterly earnings, easing crude oil prices and firm global cues. High-weight financial stocks led the gains, with Bajaj Finance surging 8.3% after reporting June-quarter earnings ahead of expectations, including a 28% year-on-year increase in consolidated profit after tax. Domestic sentiment was further supported by a stronger rupee, which appreciated to around Rs 95.4/US$ amid foreign capital inflows and lower crude oil prices. The India VIX declined more than 3%, indicating easing volatility expectations. Broader markets also participated in the rally, with the Nifty Midcap 100 and Nifty Smallcap 100 gaining 0.4% each. Sectorally, Media, Auto and Pharma outperformed. The Auto index gained around 1.6%, led by Mahindra & Mahindra after its quarterly earnings. In contrast, IT, FMCG and Cement were among the laggards. The Information Technology sector witnessed profit booking following a five-session rally, as investors locked in gains in large-cap. Despite the correction, the Nifty IT index remains on track for its strongest monthly performance in nearly six years, advancing over 16% in July. Primary market activity is expected to remain robust, with Manipal Health Enterprises, Juniper Green Energy and MV Electrosystems scheduled to debut in the coming week. The combined issue size of approximately ?11,365 crore is expected to keep investor interest in the primary market elevated.

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