Why did Nifty jump 8.6% in July?

Stock market India: July Summary

The Indian stock market posted its best month for 2022, with the Nifty jumping 8.6% in July.
Metal, Realty, FMCG and banking stocks drove the markets higher during the month

Bajaj twins on a roll: Nifty heavyweights Bajaj Finance and Bajaj Finserv soared upto 38% in the month. Robust loan growth, stellar earnings and buzz around stock-split fueled a rally in the shares.
Banks, Consumer companies see good earnings: Amid rising inflation & high interest rate environment, banks and consumer companies have reported good numbers, while IT and Metal have been the worst hit so far.
Foreign investors turn bullish: After 6 consecutive months of outflows in June, FII flows turned positive in July. Resilient economic outlook as compared to other markets, better risk sentiments brought back FII flows in July.
Nifty IT index worst performer: The IT index came under pressure due to fall in margins, higher attrition, rising sub-contractor and travel costs, rise in interest rate in the US, and concerns around recession.

What happened in the Indian stock market in July?
India's equity markets soared in July with Sensex and Nifty gaining more than 8% each in July, their biggest gain in 11 months.
What led to the gains?
Spike in banking, auto and consumer sectors with the hope of global central banks going slow on rate hikes aided the rally. Softening of commodity prices also helped improve the investor sentiment.
What happened in various sectors in July?
The Nifty Auto index gained 7.3%. Nifty Consumer Durables and Nifty FMCG indices surged 13% each. Nifty MidCap and SmallCap added over 11% and 8%, respectively, during the month.