Sensex, Nifty rise for 3rd straight session on auto, financial stocks
Synopsis
Indian equities logged a third straight session of gains on 31 July, with auto and financial stocks driving the advance even as IT shares faced profit booking. With the earnings season outperforming forecasts and key Nifty support at 24,200, the market's next move hinges on whether corporate results can confirm a broad-based recovery.
Key Takeaways
Sensex rose 166.49 points to close at 78,094.64 on 31 July — its third straight session of gains.
Nifty50 advanced 66.45 points to settle at 24,383.60 .
Bajaj Finance , Bajaj Finserv , and Jio Financial Services led Nifty gainers; auto and FMCG sectors outperformed.
Nifty IT index snapped a five-session winning streak on profit booking despite global chip stock strength.
Nifty MidCap and Nifty SmallCap each rose 0.44% , reflecting broad market participation.
Key Nifty support levels: 24,300 (immediate) and 24,200 (critical floor).
Indian benchmark equity indices closed higher for a third consecutive session on Friday, 31 July, as sustained buying in auto and financial services stocks lifted sentiment. The rally came even as information technology shares faced profit booking, snapping a five-session winning streak in the IT index.
The BSE Sensex gained 166.49 points, or 0.21%, to settle at 78,094.64, while the Nifty50 advanced 66.45 points, or 0.27%, to close at 24,383.60.
Top Performers and Sector Trends
Among the standout gainers on the Nifty were Bajaj Finance, Bajaj Finserv, and Jio Financial Services, which led the charge amid sustained buying interest in financial counters. Auto stocks outperformed the broader market, lending significant support to headline indices. FMCG stocks also held firm as stronger performers during the session.
In contrast, the Nifty IT index underperformed and ended its five-session winning streak as investors booked profits, despite continued strength in global semiconductor stocks.
Broader Market Also Gains
The broader market mirrored the positive tone, with both the Nifty MidCap and Nifty SmallCap indices each rising 0.44%. The breadth of the advance suggests the recovery is not confined to large-cap heavyweights alone, though analysts caution that confirmation of a broad-based move remains pending.
Key Support Levels to Watch
'On the downside, the 24,300 level now acts as immediate support, followed by the 24,200 zone. Holding above these levels will be important to preserve the ongoing recovery structure, while a close below 24,200 could trigger fresh profit booking toward lower support levels,' an analyst noted.
Experts added that while positive momentum continued, some caution persisted at higher levels amid elevated yields and potential rate-hike concerns globally.
Earnings Season in Focus
'The sustainability of the recovery will depend largely on the ongoing earnings season, which is currently outperforming forecasts, and on a reduction in global risks,' according to a market analyst. Another market expert noted that 'as the earnings season gathers pace, markets will seek confirmation that the recent improvement in earnings is broad-based rather than concentrated in a few sectors.'
This marks the third consecutive session of gains for Indian equities, and the direction of the next leg will likely be dictated by earnings results and global macro cues in the days ahead.
Point of View
But the headline move — 0.21% on Sensex — is modest at best. The real story is the rotation: IT, which had been the market's engine for five sessions, gave way to auto and financials, suggesting selective profit booking rather than broad conviction. Elevated global yields and unresolved rate-hike uncertainty remain a ceiling on upside. The earnings season is the swing factor — if results stay ahead of forecasts and broaden beyond a handful of sectors, the 24,200 floor holds and the rally has legs. If earnings disappoint, the support levels analysts are flagging could be tested sooner than the market expects.
NationPress
31 Jul 2026
Frequently Asked Questions
Why did Sensex and Nifty rise on 31 July?
The Sensex and Nifty rose on 31 July, driven by sustained buying in auto and financial services stocks. Bajaj Finance, Bajaj Finserv, and Jio Financial Services were among the top gainers, while auto stocks outperformed the broader market.
What are the key support levels for Nifty to watch?
Analysts have identified 24,300 as the immediate support level for the Nifty, followed by the 24,200 zone. A close below 24,200 could trigger fresh profit booking toward lower support levels.
Why did Nifty IT stocks fall despite the broader market rising?
The Nifty IT index snapped its five-session winning streak as investors booked profits at higher levels. This occurred despite continued strength in global semiconductor stocks, indicating the selling was driven by valuation caution rather than sector-specific bad news.
How did the broader market perform on 31 July?
The broader market also ended on a positive note, with both the Nifty MidCap and Nifty SmallCap indices each rising 0.44%, suggesting the gains were not limited to large-cap stocks alone.
What will determine the market's direction going forward?
Analysts say the sustainability of the current recovery depends on the ongoing earnings season, which is currently outperforming forecasts, and on a reduction in global risks including elevated yields and rate-hike concerns.
