Dear Policyholder,
Indian equities ended July 2026 with modest gains of 2.2% for Nifty after a volatile month marked by sharp swings in crude oil prices, US-Iran geopolitical tensions and 1QFY27 results. The Mid-cap Index gained 1.8%, while the Small-cap 250 Index gained 1.1%. Among sectoral indices, the Nifty IT Index gained 16.8%, led by better-than-expected 1QFY27 results and improving deal momentum, followed by the real estate and auto sectors, which gained 8.7% and 8.6%. The Nifty outperformed both the MSCI World Index (+0.1%) and the MSCI Emerging Markets Index (-9.3%). Global markets ended mixed. Hong Kong (+13%), Indonesia (+11%) and Singapore (+9%) were the top gainers, whereas South Korea emerged as the top loser, declining 22% due to a global semiconductor/AI sell-off, amid concerns over Chinese competition, followed by Japan, Taiwan and Shanghai, which declined 8%, 6.5% and 6.4%. FPIs bought US$1.1 bn (until July 30) of Indian equities in the secondary market, whereas DIIs bought US$3.7 bn (until July 31).