Summary
Markets bounce back after Wednesday’s 2.15% crash — Kalyan Jewellers soars ~19%, Dr Reddy’s tanks 6% on semaglutide setback, and TCS kicks off Q1 earnings season with a ₹12 dividend. Is the worst of the geopolitical selloff behind us?
The Sensex ended 238.22 points or 0.31% up at 76,741.82, and the Nifty50 gained 80.75 points or 0.34% to close at 23,962.80. The indices staged a partial recovery after Wednesday’s worst session in over three months.
• Nifty MidCap 100 up 1.38%
• Nifty SmallCap 100 up 1.80%
Impact on the stock market
Indian markets opened with a gap-up on Thursday, buoyed by value buying after Wednesday’s sharp 2.15% crash triggered by the US-Iran ceasefire collapse. However, late-session profit booking trimmed gains. Broader markets outperformed the frontline indices, signalling renewed risk appetite among domestic investors.
FIIs turned net buyers, picking up ₹1,962.80 crore worth of shares. Except IT and Auto, all sectoral indices ended in the green.
Sectoral performance showed a broad-based recovery:
Relative outperformers: Nifty Realty, Nifty Consumer Durables, Nifty Pharma
Lagging sectors: Nifty IT, Nifty Auto
| Sector/Index | Performance |
| IT & BPM sector | -0.30% |
| Healthcare sector | 1.00% |
| Oil & Gas sector | 0.31% |
| Real estate sector | 3.54% |
| PSU Bank in India | 1.62% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| Sun Pharma | 1,938.70 | 2.67 |
| Bharti Airtel | 1,931.10 | 2.28 |
| Bajaj Finserv | 1,895.00 | 2.16 |
| Interglobe Aviation | 5,229.50 | 2.06 |
| Eternal | 292.45 | 2.01 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| Dr Reddys Labs | 1,269.50 | -5.89 |
| Infosys | 1,050.80 | -1.73 |
| Maruti Suzuki | 13,728.00 | -1.60 |
| NTPC | 343.70 | -1.43 |
| ONGC | 243.65 | -1.36 |
Market aftermath: Impact on stocks
Dr Reddy’s crashes ~6% as semaglutide quality issue delays commercial supply
Dr Reddy’s Laboratories was the biggest loser on the Nifty50, tumbling nearly 6% to ₹1,267.95 after the company disclosed a manufacturing setback with its blockbuster weight-loss drug.
- Dr Reddy’s informed stock exchanges that certain batches of semaglutide were found to be “out of specification” due to an issue with the active pharmaceutical ingredient (API). Commercial supplies of the drug will be delayed while the company investigates.
- Semaglutide is one of the fastest-growing drug categories globally, with GLP-1 therapies expected to grow at 20% CAGR through 2030. Dr Reddy’s was the first company to secure market authorisation for generic semaglutide in India and Canada through its brand “Obeda.”
- Multiple domestic rivals — Sun Pharma, Zydus Lifesciences, Glenmark, Torrent Pharma, and Alkem — have already launched or announced their own generic semaglutide products. Any delay could cost Dr Reddy’s crucial market share.
- No impact on patient safety or existing regulatory filings. A management conference call was scheduled for Thursday evening. The stock has corrected 11% from its 52-week high of Rs 1,414.40 (June 29).
Kalyan Jewellers soars ~19% — rallies 25% in two sessions on blockbuster Q1 update & Citi upgrade
Kalyan Jewellers was the standout performer of the session, surging 18.75% to close at ₹444.55. Over two trading sessions, the stock has rallied 25.26%.
- The Thrissur-based jewellery retailer reported consolidated revenue growth of approximately 38% YoY for April–June. India revenue grew over 38%, and same-store sales surged around 28% — despite the entire 28-day Adhik Maas period falling within the quarter.
- Overseas revenue grew 35% YoY. Middle East business expanded 30% despite regional geopolitical tensions. Digital platform Candere’s revenue more than doubled — up 112% YoY.
- Citi raised its rating to ‘Buy’ with a target price of ₹750 — implying nearly 97% upside. The thesis rests on continued store expansion via the franchise model, gradual deleveraging, and improving return on capital employed.
- Kalyan opened 12 new showrooms and 5 Candere stores in Q1, taking total network to 524 outlets across India, the Middle East, the US, and the UK.
TCS kicks off Q1 earnings season — profit rises 4.6%, declares ₹12 dividend, AI revenue at $2.6B run rate
Tata Consultancy Services reported its Q1 FY27 results after market hours, officially kicking off India’s quarterly earnings season.
- Net profit of ₹13,349 crore, up 4.6% YoY. Revenue up 13.9% YoY in rupee terms. Operating margins at 24%. Interim dividend of ₹12 per share declared (record date: July 15, 2026).
- AI revenue hit a $2.6 billion annualised run rate, up 13.6% QoQ. Won marquee AI-led transformation deal with SKF. Signed strategic partnerships with Anthropic and Mistral to expand AI ecosystem.
- Strong order book of $9.5 billion for the quarter. Filed 207 new patent applications, of which 163 were AI-related inventions.
- Headcount at 593,798 with net addition of 9,279 employees. LTM attrition at 13.6%. CEO K Krithivasan noted “continued growth momentum despite geopolitical and macro headwinds.” India led growth at +22.9% YoY.
Crude oil and commodity trends
Crude oil prices remained elevated but showed signs of stabilisation after Wednesday’s sharp 6%+ surge:
Brent crude: ~$78.59 per barrel (+0.7% from Wednesday’s close)
US WTI crude: ~$74–75 per barrel
- Oil steadied on Thursday as markets assessed the impact of fresh US strikes on Iran and the revoking of a waiver that had allowed Iran to sell crude. The Strait of Hormuz disruption risks remain elevated:
- Crude prices had surged over 6% on Wednesday after Trump declared the Iran ceasefire “over” and threatened additional strikes.
- Tehran said it had targeted 85 US military sites in Bahrain and Kuwait in response to what it described as US violations of the ceasefire.
- The renewed conflict has disrupted shipping near the Strait of Hormuz, with attacks on vessels including a Qatari LNG carrier and a Saudi oil tanker.
For India, any sustained increase in oil prices directly worsens the trade deficit, pushes up inflation and complicates the Reserve Bank of India’s path towards interest rate cuts.
Conclusion
Thursday’s session was a relief rally after Wednesday’s heavy selloff, though gains were capped by late profit booking:
- Benchmarks: Nifty50 up 0.34%, Sensex up 0.31% — partial recovery after worst session in three months
- Sectoral leaders: Nifty Realty (+3.54%), Consumer Durables (+1.68%), Pharma (+0.89%)
- Underperformers: Nifty IT (-0.30%), Nifty Auto (-0.21%)
- Stock catalysts: Kalyan Jewellers (+18.75%), Dr Reddy’s (-5.99%), Sun Pharma (+2.53%)
- Macro factors: Brent crude ~$79, FIIs net buyers at ₹1,963 crore, TCS Q1 results after hours, US-Iran tensions persist.
