Monthly Market Review: July 2026
    Topic Index
    Month at a glanceEquity and sectorsDebt and ratesMutual fund flows (AMFI, July 2026)Gold, silver and globalWhat investors may noteThe month ahead (August 2026)
    MarketsText

    Monthly Market Review: July 2026

    SERNET Research Desk1 August 20262 min read

    Why did IT shares surge 16% in July 2026? Foreign buying returned, Nifty rose 2.4% and mutual fund AUM jumped 4.3% to ₹85.76 lakh crore.

    *This review was published retrospectively in November 2026 and is dated to the start of the following month. Some figures, such as AMFI flows, were released after month end and are included for completeness. Index returns are as reported in HSBC Mutual Fund's monthly Equity Market Review unless stated otherwise.*


    Month at a glance


    IndicatorJuly 2026
    BSE Sensex+2.3%
    Nifty 50+2.4%
    Best sectorsIT (~+16%), Consumer Durables (~+9%), Realty (~+8%), Auto (~+6%)
    Weakest sectorsCapital Goods (~−7%), Power (~−6%)
    Foreign investorsNet buyers, about ₹40,031 crore
    SIP contributions₹31,961 crore
    Industry AUM₹85.76 lakh crore

    Equity and sectors


    July saw a broad rally led by large caps. IT staged a sharp rebound, gaining about 16% after its steep fall in June. Consumer Durables, Realty and Autos also rose. Capital Goods and Power gave back some of their earlier gains.


    Foreign investors turned net buyers for the month, investing about ₹40,000 crore. Domestic institutions kept buying too. First-quarter company results started well, which supported sentiment.


    Even so, about half of the stocks in the BSE 500 underperformed the index. The rally was led by a few sectors.


    Debt and rates


    There was no RBI policy meeting in July. Bond markets focused on oil prices, the rupee and US interest-rate expectations. The rupee was broadly stable during the month.


    Mutual fund flows (AMFI, July 2026)


    MetricJuly 2026June 2026
    SIP contributions₹31,961 crore₹31,781 crore
    Net equity fund inflows₹24,697 crore₹28,973 crore
    Industry AUM₹85.76 lakh crore₹82.22 lakh crore
    Passive fund AUM₹15.61 lakh crore₹15.30 lakh crore

    Gold, silver and global


    • Crude oil rose sharply again, ending the month at about $85 a barrel. The reopening had eased supply fears only partly.
    • Gold was flat in dollar terms, at about $4,026 an ounce.
    • US equities were broadly flat.

    What investors may note


    • Sectors that lose heavily can recover quickly, as IT did. Exiting after a sharp fall can lock in losses.
    • More money flowing into multi-asset and arbitrage funds suggests investors want lower-volatility options. Match these to your time horizon.
    • Foreign investor flows can reverse quickly. Steady domestic SIP flows have been a stabilising force.

    The month ahead (August 2026)


    • RBI policy decision: 5 August
    • Q1 FY27 results continue
    • CPI inflation for July: mid-August
    • AMFI July data: around 10 August

    *Sources: HSBC Mutual Fund Equity Market Review (July 2026), Business Standard, Motilal Oswal MF Global Dashboard (July 2026), AMFI monthly data and notes (July 2026). Figures are rounded.*

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