July 2026 in numbers: IT's rebound and a calmer market

July at a glance

July 2026 was a steady month with one sector in the lead. The Nifty 50 rose 2.2% to 24,383.60 on 31 July, and Nifty IT rose 16.8%, its best month since July 2020, after losing almost a third of its value in the first half.

The market also got calmer. India VIX ended the month at 11.76, its lowest month-end reading of 2026. Foreign institutions sold just ₹5,779 crore of shares, a fraction of most earlier months, while domestic institutions bought ₹35,099 crore.

Figures compare 30 June with 31 July, the last trading days of the two months, unless another date is given.

Stocks

The Nifty 50 is now 7.4% below its 2 January record. The Midcap 150 set another record close, 23,170.50 on 21 July, and ended the month just 0.1% below it. The Smallcap 250 ended 3.8% below its September 2024 high; on 13 July it had closed at 18,171.85, within 2.4% of it, its closest this year.

For once the large companies led and the small ones trailed, though the spread between them was only about a point.

Nifty IT went from 26,299.05 to 30,708.90. In our record since 2012 only two months were better: July 2020 (+22.5%) and July 2013 (+17.4%). Its P/E rose from 17.26 to 19.61. Of the 136 NSE indices with a published P/E on both days, 109 rose.

The Nifty 50 dipped mid-month, to 23,767.45 on 24 July, before rising in the last week. India VIX moved between 11.65 and 14.68.

Funds

Median July return, Direct plan, Growth option, from 30 June NAV to 31 July NAV:

After April, when the order ran from small caps at the top to large caps at the bottom, July ran the other way round. The 12 technology funds gained a median 11.59%. Large-cap fund returns in July and small-cap fund returns in July cover the two ends.

Gold and silver

International spot prices converted to rupees, before import duty and GST. After June's falls of 12.9% and 22.4%, both metals were close to flat. Gold ended July 20.9% below its January peak.

Institutional flows

FIIs were net sellers on 13 of July's 23 sessions. Their ₹5,779 crore was the smallest monthly net sale of 2026, and the seventh month of net selling in a row. For the year so far FII net selling totals ₹3,51,523 crore and DII net buying ₹5,05,237 crore. FII vs DII in the first half has the half-year in detail.

The rupee

The dollar rose from about ₹94.79 on 30 June to ₹95.68 on 31 July, a rise of 0.9%. On 24 July it closed at ₹96.88, the rupee's weakest close in our series, which starts in 2016.

What this does not tell you

This best month followed a worst stretch. Nifty IT's July gain is measured from a level 30.6% below where it began the year, and it remains well below that starting point.

A calm VIX is a reading of expected volatility, not a forecast. It was lower still at the start of January, just before the year's fall began.

The flow figures are provisional, and metal prices exclude duty and GST. Nothing here is advice to buy or sell.

Where to go from here

The live numbers are on NSE index valuations, gold and silver prices and FII and DII data. Nifty IT's P/E in July puts the sector's valuation in context, and the first half is in the first half of 2026 in numbers.