Market update – Thursday, July 2, 2026
Indian equity markets extended their winning streak on Thursday, July 2, with benchmark indices closing firmly higher. A strong rebound in information technology stocks after four consecutive sessions of selling, coupled with easing crude oil prices and improving global sentiment, helped propel the markets higher.
The Nifty 50 opened nearly 50 points higher and steadily advanced throughout the session, touching an intraday high of 24,194.55 before closing at 24,175.70, up 169.85 points (0.71%). The Sensex gained 579.48 points (0.75%) to finish at 77,502.12. The Bank Nifty ended largely unchanged, while the India VIX declined 7.21%, signalling a notable reduction in market volatility.
Global Cues Lift Sentiment
Investor confidence improved after reports of constructive progress in indirect U.S.-Iran talks held in Doha, Qatar. Discussions reportedly centred on ensuring safe passage through the Strait of Hormuz and the possible release of frozen Iranian funds. Markets interpreted the developments as a positive step towards easing geopolitical tensions in the Middle East.
Adding to the optimism, Brent crude oil slipped below USD 71 per barrel, easing concerns over global supply disruptions. For India, softer crude prices are a significant positive as they reduce import costs, support lower inflation, improve fiscal stability, and create a favourable environment for corporate earnings.
Sector Performance
Eight of the eleven major sectoral indices ended the session in positive territory.
The clear standout was the Nifty IT Index, which surged 4.75%, recording its strongest single-day gain in nearly a year after losing approximately 6.5% over the previous four trading sessions. Investors returned aggressively to quality technology names, viewing the recent correction as an attractive buying opportunity.
Leading the rally were:
- Infosys: +5%+
- HCLTech: Strong gains
- TCS: Solid advance
- Tech Mahindra: Positive momentum
- Wipro: Healthy recovery
The rebound was aided by improving domestic sentiment and expectations that moderating AI-related enthusiasm in parts of Asia could enhance the relative appeal of Indian IT companies.
On the other hand, the Nifty PSU Bank Index slipped 0.43%, making it the day’s weakest-performing sector.
The broader market also remained healthy, with the Nifty Midcap 100 rising 0.48% and the Nifty Smallcap 100 gaining 1.25%, reflecting continued participation beyond large-cap stocks.
Key Stock Movers
Among notable gainers:
- Dhanlaxmi Bank jumped 5.04% after reporting healthy June quarter advances.
- Tamilnad Mercantile Bank gained 2.16% following strong business updates.
- TVS Motor Company climbed 3.8% after announcing monthly sales figures and unveiling plans to invest ₹2,000 crore towards expanding the iconic Norton Motorcycles brand.
Top Contributors to Nifty
The biggest positive contributors to today’s rally were:
- Infosys: +42.61 points
- ICICI Bank: +31.64 points
- Tata Consultancy Services: +19.09 points
The major drags on the index included:
- Larsen & Toubro: -8.48 points
- Reliance Industries: -6.64 points
- Axis Bank: -3.83 points
Market Breadth & Internals
Market participation remained comfortably positive throughout the session.
NSE Market Breadth
- Advances: 2,226
- Declines: 1,145
- Unchanged: 81
52-Week Highs: 136
52-Week Lows: 34
Upper Circuits: 130
Lower Circuits: 83
Today’s Top Volume Gainers (NSE)
Stocks witnessing significant trading activity included:
- Infosys
- ICICI Bank
- Tata Consultancy Services
- Reliance Industries
- Larsen & Toubro
- HCLTech
- Wipro
- Tech Mahindra
This list is purely for educational purposes and should not be construed as investment advice.
Global Economic Calendar
July 3, 2026
- US Non-Farm Payrolls
- US Unemployment Rate
- US Average Hourly Earnings
- US ISM Services PMI
- Eurozone Producer Price Index (PPI)
These releases could influence global risk sentiment and provide direction to equity markets in the coming sessions.
What This Means for Investors
- The sharp rebound in IT suggests investors continue to accumulate quality stocks after meaningful corrections, reinforcing confidence in the sector’s long-term prospects.
- Falling crude oil prices remain a strong macroeconomic tailwind for India, benefiting inflation, corporate margins, and overall market sentiment.
- Broad-based participation from midcaps and smallcaps indicates improving market breadth, a healthy sign for the ongoing rally.
- With key US economic data due next, investors should remain selective and avoid chasing short-term momentum while staying focused on fundamentally strong businesses.
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