Indian Stocks Close Higher Despite US-Iran Tensions

Indian equity benchmarks closed with modest gains on July 30, 2026, despite early volatility and global headwinds. The Sensex rose 273.55 points (0.35%) to 77,928.15, and the Nifty 50 increased 66.95 points (0.28%) to 24,317.15. Gains were led by the auto and IT sectors, with companies such as Mahindra & Mahindra, Eicher Motors, and Infosys performing strongly.

Market sentiment was pressured throughout the day by escalating geopolitical tensions. Donald Trump vowed to retaliate after an Iranian attack on a military base in Jordan, leading to a wave of US strikes on Iranian military targets. These conflicts, alongside a tanker explosion in the southern Red Sea and a strike in Iran's West Azerbaijan province, kept Brent crude prices volatile, trading between $89 and $93 per barrel.

Investors also reacted to a split decision by the United States Federal Reserve to maintain interest rates at 3.50%–3.75%. While the board voted 9-3 to hold the rate, three members dissented in favor of a hike to combat inflation. The Reserve Bank of India intervened to stabilize the rupee, which closed nearly flat. Despite the volatility, the markets were supported by foreign institutional investors who purchased equities worth Rs 2,981.87 crore on Wednesday.