The ceasefire that ended June on a hopeful note didn't hold. Conflict in the Middle East resumed in July, oil prices climbed back sharply, touching $94 a barrel at their peak, and for a while it looked like May all over again.

But markets had other ideas. A global shift away from US-based AI and technology stocks pushed foreign money toward Indian software companies, which offer stable, long-term earnings. That one shift changed the entire mood of the month. Foreign investors returned to India after months of selling, IT stocks had one of their best months in years, and the broader market held up well. July turned out to be a steady, encouraging month, the kind that rewards investors who stayed the course.

The Nifty closed at 24,383 and the Sensex at 78,094. With the Sensex touching a monthly high of 78,664. Indian markets outperformed most Asian peers as well as the US for the month.

If you had ₹1 lakh invested at the start of July, it was worth roughly ₹1,02,360 by month end. A quiet, steady gain.

IT led everything. The Nifty IT index surged 17%, its best month since July 2020. HCL Technologies rose 26% after signing a $1.14 billion AI deal with a major global client. TCS, Tech Mahindra, and Infosys all had strong months. Since IT is a large part of the Nifty, it pulled the whole index upward.

Banking took a breather. After leading June's rally, banking stocks paused in July. If your portfolio is heavier on banking funds, July was a quieter month for you.

Equity mutual funds received net inflows of ₹24,697 crore in July. That's lower than June's ₹28,973 crore, but still the 65th consecutive month of positive equity inflows. Indian investors haven't pulled money out of equity funds in over five years.

Where did the money go within equity funds?

• Small Cap funds led with ₹7,767 crore, investors saw an opportunity in smaller companies
• Mid Cap funds attracted ₹6,192 crore, steady demand continued
• Flexi Cap funds pulled in ₹4,709 crore, the preferred choice for investors who want flexibility
• Large Cap funds saw a net outflow of ₹1,321 crore, some profit-booking after the market rally

Total industry AUM rose to ₹85,75,656 crore, roughly ₹85.75 lakh crore. A new record, driven by both market gains and fresh inflows.

Debt funds had a very strong month with net inflows of ₹1,87,511 crore. This is largely institutional money (companies, banks) moving in and out of short-term funds for their own treasury needs, not retail investors. It's a big number but not a signal of anything dramatic for most investors reading this.

For the first time since February, foreign investors turned net buyers of Indian stocks, putting in ₹15,412 crore in July. Domestic institutions added another ₹32,839 crore alongside them.

Both buying at the same time is a healthy signal. It means the market wasn't being propped up by one side alone.

For the first time ever, Indian domestic investors now own more of India's listed companies, 18.9% than foreign investors, who hold 14.7%. For decades, foreign money set the tone for Indian markets. That dynamic has quietly shifted. Your SIP is part of why.

On July 15, a major trade agreement between India and the UK came into effect, making 99% of Indian goods duty-free in the UK. IT companies stand to save an estimated $500 million a year. Pharma and textiles also benefit significantly. This is a long-term structural positive that will play out over the years ahead.

Gold ETFs attracted ₹1,558 crore in fresh inflows in July, demand held up despite oil dominating the headlines. Gold closed at ₹1,42,295 per 10 grams, up about 1% for the month. Despite crude spiking above $90, gold's gains were measured, a sign that investors were cautious, not panicked.

Silver had the stronger month of the two. Silver gained over 3% in July, closing at ₹2,17,990 per kg. Silver tends to respond to both safe-haven demand and expectations of industrial activity picking up, its outperformance over gold suggests some quiet optimism about the global economy beyond the near-term uncertainty.

If you hold gold or silver as part of your portfolio, both did their job in July, adding stability and modest returns while equities recovered.

• If your portfolio gained this month: Two consecutive positive months after a rough stretch, this is exactly what long-term investing looks like. Staying put through May and June paid off.
• If you hold IT funds: July was your month. The kind of sharp recovery that makes you glad you didn't exit when things looked quiet.
• If you're on a SIP: 65 consecutive months of positive equity inflows. Through oil shocks, geopolitical tensions, FII selling, and market corrections, Indian SIP investors have not blinked. You are part of that story.
• What to watch in August: The RBI meets to decide on interest rates. Crude oil and the Middle East situation remain unpredictable. Company earnings results through August will tell us how India's businesses are actually holding up after a turbulent few months.