Markets end higher as auto stocks lift market despite Fed jitters

Benchmark indices ended higher on Thursday after a volatile session, with gains in automobile stocks, supported by upbeat quarterly earnings, helping the market overcome global uncertainty following the US Federal Reserve's hawkish pause on interest rates.The BSE Sensex climbed 273.55 points, or 0.35%, to settle at 77,928.15, while the NSE Nifty50 gained 66.95 points, or 0.28%, to close at 24,317.15.Markets witnessed sharp intraday swings as investors balanced concerns over rising US bond yields, geopolitical tensions in West Asia and crude oil volatility against improving domestic fundamentals, healthy corporate earnings and continued foreign investor buying.Auto stocks emerged as the biggest gainers of the day after encouraging quarterly earnings, with the Nifty Auto index rising 1.63%. Mahindra & Mahindra led the rally, climbing 1.73%, while Maruti Suzuki gained 1.77%. The strength in auto shares helped lift the broader market despite weakness in several heavyweight stocks. Among Sensex constituents, Maruti Suzuki was the top gainer, followed by Mahindra & Mahindra, Reliance Industries, SBI, HDFC Bank and Power Grid. Tech Mahindra, Sun Pharma, and HCLTech also ended in the green.On the flip side, Adani Ports dropped 3.26% to emerge as the biggest loser on the Sensex, while Indigo fell 0.87%, Bajaj Finserv slipped 0.83%, BEL declined 0.74% and Axis Bank lost 0.57%. TCS, which had led the IT rally in recent sessions, also ended 0.56% lower. Sectoral trends were mixed. Besides Auto, the Nifty Media index gained 0.29%, IT advanced 0.23%, Oil & Gas rose 0.46% and Consumer Durables added 0.33%. However, Realty declined 2.06% to emerge as the worst-performing sector, while Chemicals fell 1.17%. Financial Services, Private Bank and FMCG indices also ended marginally lower.Broader markets underperformed the benchmarks. While the Nifty 100 gained 0.24% and the Nifty 200 rose 0.12%, the Nifty Midcap 50 fell 0.33%, the Midcap 100 declined 0.35% and the Smallcap 100 slipped 0.56%, indicating profit booking in the broader market after the recent rally. India VIX rose 1.22% to 12.16.Crude oil prices remained volatile after Wednesday's sharp rally amid tensions in West Asia. Brent crude was up 0.30% at $91.01 a barrel, while WTI crude edged 0.05% lower to $84.42.Vinod Nair, Head of Research at Geojit Investments Limited, said the market remained range-bound despite domestic support factors."The Fed's decision to maintain the status quo on rates was largely anticipated, but hawkishness remained due to continued emphasis on inflation control. A sharp uptick in US bond yields signalled growing pressure for a possible rate hike in the near future, keeping global investors on edge, while renewed crude oil volatility amid West Asian tensions added to external uncertainty," he said."As a result, domestic equities stayed range-bound with sharp intraday swings, as investors weighed global headwinds against resilient domestic fundamentals. Nonetheless, strengthening FII inflows, a firmer rupee, and encouraging Q1FY27 supported sentiment, prompting investors to treat dips as selective buying opportunities," Nair added.Meanwhile, the rupee ended little changed at 95.6775 against the US dollar, compared with its previous close of 95.6475, as gains from sustained foreign inflows were offset by elevated crude oil prices.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- EndsPublished On: Jul 30, 2026 16:07 IST