Market update – Wednesday, 1 July 2026
Indian equity markets staged a healthy recovery on Wednesday, 1 July 2026, snapping a two-day losing streak as investors returned to buying, led by the automobile sector. Robust June auto sales, encouraging GST collection figures, and easing volatility helped lift sentiment, allowing the Nifty 50 to reclaim the psychologically important 24,000 mark. However, persistent weakness in IT stocks and lingering global geopolitical concerns prevented a sharper rally.
The Nifty 50 settled at 24,005.85, gaining 0.59%, while the Sensex advanced 140.10 points (0.58%) to close at 76,922.64. The Bank Nifty outperformed with a gain of 0.85%, while India VIX declined 2.6%, reflecting easing market anxiety. After opening nearly 30 points higher, the Nifty climbed steadily to an intraday high of 24,049.90 before ending the session firmly in positive territory.
Market Breadth & Internals
The broader market continued to show resilience despite selective sectoral weakness.
- Advances: 1,852
- Declines: 1,473
- Unchanged: 100
- Total Stocks Traded (NSE): 3,425
- 52-Week Highs: 137
- 52-Week Lows: 54
- Upper Circuits: 119
- Lower Circuits: 84
The positive market breadth indicates buying interest remained healthy beyond just the benchmark heavyweights.
Sectoral Performance
The Auto sector stole the spotlight, with the Nifty Auto Index soaring 3.58% after impressive June sales numbers across major automobile manufacturers.
Highlights included:
- Maruti Suzuki reported 19.3% growth in total sales.
- Tata Motors’ passenger vehicle sales surged 69%.
- Mahindra & Mahindra recorded an impressive 37% increase in total sales.
- JSW MG Motor India posted 30% growth.
- Å koda Auto India reported its strongest-ever first-half performance in India.
- Hyundai Motor India remained an exception, reporting lower sales due to temporary supplier disruptions.
On the other hand, Nifty IT declined 2.01%, emerging as the biggest laggard of the day as investors remained cautious over the possibility of higher U.S. interest rates affecting global technology spending.
Overall, 8 out of 11 major sectoral indices ended the day in positive territory.
GST Collections Continue to Impress
Another major positive for markets came from India’s tax collections.
June 2026 GST collections rose 13.9% YoY to ₹1.95 lakh crore, moving closer to the historic ₹2 lakh crore mark.
Key highlights:
- Gross domestic GST: ₹1.34 lakh crore (+6.5%)
- Import GST: ₹60,038 crore (+34.6%)
- Net GST collections: ₹1.62 lakh crore (+11.2%)
- GST refunds: ₹32,436 crore (+29.1%)
For Q1 FY27, total GST collections stood at ₹6.32 lakh crore, reflecting 8.4% growth, reinforcing confidence that domestic economic activity remains healthy despite global uncertainties.
Global Cues
Brent crude oil traded near USD 73 per barrel, remaining well below the sharp highs seen earlier this year. Prices found some support from renewed uncertainty surrounding U.S.–Iran negotiations, although expectations of adequate global supply kept gains contained.
Global investors also remained cautious ahead of further developments on U.S. monetary policy, particularly after fresh concerns about possible interest rate actions that weighed heavily on technology stocks worldwide.
Top Movers
Major Contributors to Gains
- Eternal
- Reliance Industries
- State Bank of India
Major Drags
- Larsen & Toubro
- Infosys
- Tata Consultancy Services
Among individual stocks:
- KPIT Technologies plunged 15.2% after issuing a profit warning and indicating weaker dollar revenue expectations.
- Ola Electric Mobility rallied strongly following nearly doubled vehicle registrations during Q1, signalling improving demand momentum.
What This Means for Investors
The market continues to demonstrate remarkable resilience despite multiple global headwinds. Strong domestic fundamentals are increasingly offsetting external uncertainties.
Key takeaways:
- Strong GST collections reinforce confidence in India’s economic momentum.
- Auto stocks remain one of the strongest earnings-driven sectors to watch this quarter.
- IT may continue to witness near-term volatility amid global rate concerns.
- Broad market participation remains healthy, suggesting investors are selectively accumulating quality stocks instead of chasing momentum.
Today’s Top Volume Gainers (NSE)
The most actively traded stocks by volume included:
- Vodafone Idea
- Reliance Industries
- Eternal
- State Bank of India
- Tata Steel
- Suzlon Energy
- YES Bank
- Tata Motors
- Hindustan Construction Company
- Indian Overseas Bank
Volume data is provided purely for educational purposes and should not be considered as investment advice.
Global Economic Calendar
2 July 2026
- US Initial Jobless Claims
- US Non-Farm Payrolls
- US Unemployment Rate
- US Average Hourly Earnings
- US Factory Orders
- ECB Meeting Minutes
Indian markets began the second half of 2026 on an encouraging note, with domestic strength once again taking centre stage. Strong tax collections, robust automobile demand, and improving market breadth indicate that investor confidence remains intact. While global uncertainties and IT sector weakness continue to create pockets of volatility, the broader trend still favours selective accumulation in fundamentally strong businesses.
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