Weekly Market Wrap: NIFTY50, SENSEX end in red; SMIDs outperform, Trent biggest loser

Despite a strong rally in the last two trading sessions, the Indian stock market ended the week of July 10 on a negative note, as investor sentiment remained cautious amid persistent geopolitical concerns.

Furthermore, investors’ sentiment was dampened as the crude oil prices in the global market surged over 5% during the week and closed near $77 per barrel (bbl).

However, the indices recouped Wednesday’s losses over the last two trading sessions, supported by encouraging quarterly business updates and earnings. Fresh foreign fund inflows, along with buying in heavyweight stocks and a rally in PSU banks, IT, and realty shares, further lifted market sentiment.

India VIX rose 3.8% during the week, indicating a pickup in market volatility amid lingering geopolitical concerns and cautious investor sentiment.

Shares of Trent Ltd, the retail arm of the Tata Group, plunged despite the company reported around 19% year-on-year (YoY) increase in standalone revenue for the June quarter (Q1FY27). The stocks came under selling pressure as analysts believe the company's 19% year-on-year revenue growth fell short of market expectations, which were pegged in the low-to-mid-twenties.

Dr Reddy's Laboratories shares declined after the drugmaker said commercial supplies of its semaglutide product would be delayed due to an active pharmaceutical ingredient (API)-related quality issue.

How the broader market performed this week

During the week, broader markets fared better than the benchmark indices, with the NIFTY Midcap 100 and NIFTY Smallcap 100 rising 1.4% and 1.3%, respectively.

On Friday, the NIFTY Midcap 100 surged up to 1.46% to hit a record high of 63,076.50, while the NIFTY Smallcap 100 advanced as much as 1.7% to a fresh 52-week high of 19,444.35. The sharp rally in midcap and smallcap stocks was driven by optimism around a recovery in Q1 earnings.

Kalyan Jewellers India shares witnessed a surge in stock after the company said that the recently concluded quarter was a satisfying one with consolidated revenue growth of around 38% in the first quarter of the current financial year compared with the same period last year.

The jewellery firm said it has witnessed a revenue growth of 38% for India operations during Q1 FY27 as compared to the same quarter in the previous fiscal year. The increase was led by robust operating momentum on the ground with healthy same-store-sales growth (SSSG) across all the key markets in the country.

Furthermore, Info Edge India shares jumped after the firm posted its Q1 FY27 business updates. The operator of job portal naukri.com and matrimonial website Jeevansathi saw a 14.4% increase in its standalone billings at ₹737 crore in Q1 FY27 as compared to ₹644.2 crore in the same quarter of the previous fiscal year.

Sectoral watch this week

On the sectoral front, realty stocks led the gains during the week, with the NIFTY Realty index surging 5.4%. This was followed by the NIFTY Consumer Durables index, which rose 3.7%, and the NIFTY IT index, up 2.1%. The NIFTY Metal and NIFTY PSU Bank indices also ended in positive territory, advancing 0.7% and 0.5%, respectively.

The real estate sector has been quietly rewarding investors despite volatility in the broader market.  According to industry reports, studies, and sector experts, the sharp rally in real estate stocks has been driven by a combination of favourable macroeconomic and sector-specific factors rather than a single trigger.

Strong Q1 sales figures, continued demand, and strong institutional investments, along with rate cut expectations and improving macros, have been supporting the sector.

On the flip side, media stocks were among the top laggards, with the NIFTY Media index declining 1.9% during the week. The NIFTY FMCG index fell 1.6%, while the NIFTY India Defence index dropped 0.9%. The NIFTY Auto and NIFTY Private Bank indices also ended lower, each slipping 0.5%.