Benchmark indices opened nearly flat on Thursday morning, with the Sensex starting at 77,998.66 against its previous close of 77,928.15, trading at 77,956.67, up 28.52 points or 0.04 per cent, while the Nifty50 opened at 24,361.45 against its previous close of 24,317.15, trading at 24,347.45, up 30.30 points or 0.12 per cent, as of 9.21 am on July 31, 2026.Financial stocks led the morning's gains on the Nifty50. Bajaj Finance was the top gainer, opening at ₹1,095 and trading at ₹1,097.90, up 4.21 per cent from its previous close of ₹1,053.50, on volumes of over 74.99 lakh shares. Bajaj Finserv rose 3.08 per cent, trading at ₹1,968.20 against a previous close of ₹1,909.40, after opening at ₹1,932. Shriram Finance added 1.78 per cent, trading at ₹1,045.50 from a previous close of ₹1,027.20.On the sectoral front, Mahindra & Mahindra advanced 1.78 per cent, trading at ₹3,342 against a previous close of ₹3,283.70, while Grasim Industries rose 0.91 per cent to ₹3,133.20 from ₹3,104.80.IT stocks plungeInformation technology stocks were the session's worst performers. TCS dropped 3.62 per cent to ₹2,343.70 from a previous close of ₹2,431.80 on volumes of 5.71 lakh shares, while Infosys fell 3.61 per cent to ₹1,113.40 from ₹1,155.10 on heavy volumes of 14.20 lakh shares. HCL Technologies declined 3.28 per cent to ₹1,308.30 from ₹1,352.70, Wipro shed 2.80 per cent to ₹181.11 from ₹186.33, and Tech Mahindra lost 2.28 per cent to ₹1,631 from ₹1,669.The selling in IT counters came even as Wall Street closed sharply higher overnight — the Nasdaq gaining 2.8 per cent, the S&P 500 rising 1.7 per cent, and the Dow Jones up 1.2 per cent — driven by robust earnings from major US technology companies, particularly Microsoft, which lifted sentiment around artificial intelligence-led growth. "A significant feature of recent stock market trends in countries like the US and South Korea has been the unusually huge volatility in stock price movements," said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. "Tech stocks are witnessing huge volatility in response to quarterly results, expectations and unprecedented speculative trading."Asian marketsThe chip rally extended into Asian markets on Thursday morning. South Korea's Kospi surged over 15 per cent, driven by a 25 per cent spike in Samsung and a 21 per cent spike in SK Hynix, which together account for 52 per cent of Kospi's market capitalisation. Japan's Nikkei 225 gained over 5 per cent, while the Taiwan index was up 8 per cent. The Hang Seng, however, traded lower."Double digit up moves and down moves at the index level are very rare. But this is happening now in South Korea, that too frequently," said Vijayakumar. "Institutional investors don't like this kind of huge volatility which might impact their performance. This may be one reason why FIIs have turned buyers in India in recent days."Foreign Portfolio Investors turned net buyers of domestic equities in the previous session, purchasing over ₹3,600 crore despite uncertain geopolitical conditions. Over the last three days, FIIs have cumulatively purchased equities worth ₹7,360 crore. "India is a stable market and the down risks are limited now, particularly in largecaps where the valuations are fair and growth prospects good," Vijayakumar added. "Q1 results released so far indicate revival of earnings growth momentum."Positive sentimentGIFT Nifty futures were hovering near the 24,420 mark before the open, up 57 points, pointing to a firm start. "Global market sentiment remained upbeat after a strong rally on Wall Street, driven by robust earnings from major US technology companies, particularly Microsoft, which boosted confidence in AI-led growth," said Hitesh Tailor, Technical Research Analyst at Choice Broking. "Stable global cues and easing crude oil prices are also expected to support investor sentiment in the early part of the session."On the previous session, the Nifty closed at 24,317.15, up 66.95 points or 0.28 per cent, after opening flat and recovering in the latter half. The Sensex gained 274 points. The Auto index was the top sectoral performer, advancing over 1.76 per cent, while the Realty index underperformed, declining nearly 2 per cent. The broader market, however, underperformed with an adverse advance-decline ratio of 1:3."Despite a muted opening, the market remained comfortably above the 20-day Simple Moving Average throughout the session," noted Shrikant Chouhan, Head of Equity Research at Kotak Securities. "The formation of a bullish candlestick on the daily chart, coupled with an uptrend continuation pattern on the intraday charts, suggests that the ongoing positive momentum is likely to persist."Tensions remainGeopolitical tensions remain a key risk. The United States and Iran have exchanged fresh strikes, with Tehran warning that the US will "pay the price" for its actions, keeping market participants watchful. Crude oil has surged more than 20 per cent over the past month, with WTI crude trading near $84 per barrel, raising concerns about India's import bill, rupee pressure, and inflation trajectory.Ponmudi R, CEO of Enrich Money, a SEBI-registered wealth-tech firm, flagged oil as the most critical external variable. "For India, persistently elevated oil prices remain the most significant external risk, given their potential to widen the import bill, pressure the rupee and complicate the inflation outlook, even as broader market sentiment improves," he said.TechnicalsTechnically, the Nifty faces immediate resistance in the 24,300–24,400 zone, which also coincides with the 200-day Exponential Moving Average. A sustained breakout above this band could open a move toward 24,500–24,600. Immediate support lies at 24,200, with the psychologically significant 24,000 mark below that. The Daily RSI stands near 58, having generated a bullish crossover.For the Bank Nifty, which closed at 57,147.50 on Wednesday, down 58.40 points or 0.10 per cent, immediate resistance is seen at 57,300–57,400, with support at 56,700–56,800. Chouhan advises traders to use the current pullback to reduce weak long positions in the 24,500–24,550 zone on the Nifty, and consider fresh buying selectively on declines toward the 24,200–24,100 support area.Published on July 31, 2026