Morning Session – Indian Financial Market (31 Jul 2026)

Indian Rupee
The Indian rupee opened with a gap-down at 95.3950 against the U.S. dollar on Friday, compared with its previous close of 95.68 on Thursday. The Indian rupee extended its winning streak to a fifth consecutive session on Friday, July 31, 2026, strengthening by 20 paise to open at 95.30 against the US dollar. This upward momentum was largely driven by sustained foreign capital inflows and a decline in global crude oil prices, offering some relief following a recent slump caused by geopolitical tensions in the Middle East. Although a stronger greenback and ongoing regional conflicts managed to cap more substantial gains, domestic indices showed positive movement as well, with the Sensex and Nifty opening higher while foreign institutional investors recorded notable net equity purchases.

Indian Equities
Indian stock markets are trading on a cautious note with the Nifty hovering around 24,300 and the Sensex moving near 77,800, as heavy selling pressure in IT stocks like TCS and Infosys weighs down the indices. Despite the broader market caution, individual stocks are reacting sharply to June-quarter earnings and corporate developments, highlighted by Bajaj Finance surging over 4 percent following an upgrade to a buy rating on strong asset quality, while Thermax slumped more than 14 percent on weak financial results. Meanwhile, key market participants are closely monitoring upcoming earnings reports from major heavyweights such as ITC, Maruti Suzuki, and Sun Pharma, alongside positive developments like Mahindra's electric three-wheeler division achieving unicorn status and various brokerage upgrades across the automotive and financial sectors.

Indian Government Bonds
Indian government bond traders are expected to lean bearish during early trading on Friday as the market braces for a fresh debt supply of 340 billion rupees through the benchmark note auction. This upcoming debt issuance coincides with a period of slower foreign buying, which is placing additional strain on domestic investor appetite. Consequently, the benchmark 6.94 per cent 2036 bond yield is projected to hover between 6.80 per cent and 6.84 per cent following its previous close at 6.8132 per cent, reflecting the inverse relationship where yields rise as bond prices face downward pressure.

The 10-year benchmark bond yield was trading at 6.803%.