Market Commentary End Session News Details

Sensex jumps 579 points; Nifty tops 24,150 on IT, auto rally

(02-Jul-26   16:52)

Benchmark indices extended their gains for a second straight session on Thursday, supported by broad-based buying in IT and auto stocks. Sentiment was also buoyed by easing crude oil prices amid ongoing US-Iran peace talks. The Nifty closed above the 24,150 mark, while the Nifty IT index rebounded nearly 5% after four consecutive sessions of losses. Broader markets outperformed, led by small-cap stocks, although PSU bank shares bucked the trend and ended lower.

The S&P BSE Sensex surged 579.48 points, or 0.75%, to 77,502.12, while the Nifty 50 advanced 169.85 points, or 0.71%, to 24,175.70. Over the two trading sessions, the Sensex has gained 1.33% and the Nifty has risen 1.29%.

Infosys (up 5.82%), TCS (up 4.45%) and ICICI Bank (up 1.54%) boosted the Nifty higher today.

In the broader market, the BSE 150 MidCap Index climbed 0.65%, while the BSE 250 SmallCap Index outperformed with a gain of 0.98%.

Market breadth remained positive. On the BSE, 2,536 shares advanced, 1,740 declined and 191 remained unchanged.

The NSE's India VIX, which measures expected market volatility, fell 7.21% to 12.29.

Economy:

India's fiscal deficit reached Rs 1.62 lakh crore in the first two months of FY27 (through May), accounting for 9.6% of the full-year budget target, up sharply from 0.8% a year earlier. Total receipts stood at Rs 7.19 lakh crore, while expenditure was Rs 8.81 lakh crore. Revenue receipts came in at Rs 6.99 lakh crore, including Rs 3.48 lakh crore in tax revenue and Rs 3.51 lakh crore in non-tax revenue.

Numbers to Track:

The yield on India's 10-year benchmark federal paper was down 0.58% to 6.721 as compared with previous close 6.760.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 95.3950 compared with its close of 95.1650 during the previous trading session.

MCX Gold futures for 5 August 2026 settlement rose 0.04% to Rs 144,488.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.33% to 101.10.

The United States 10-year bond yield grew 0.42% to 4.494.

In the commodities market, Brent crude for September 2026 settlement lost $1.06 or 1.48% to $70.51 a barrel.

Global Markets:

US Dow Jones futures rose 81 points, indicating a positive start for Wall Street later on Thursday.

European indices traded higher as investors weighed hawkish comments from global central bankers against regional economic data, while awaiting the closely watched US jobs report due later this week.

Most Asian indices ended higher as investors remained cautious ahead of key US employment data, which could offer fresh clues on the Federal Reserve's interest rate path. Sentiment, however, remained subdued following overnight weakness on Wall Street.

South Korea's Kospi bucked the regional trend, plunging 7.36% and triggering a five-minute trading halt after the benchmark breached the Korea Exchange's circuit-breaker threshold amid heightened market volatility.

Overnight, Wall Street ended mixed. The Dow Jones Industrial Average briefly touched a record high before slipping 13.96 points, or 0.03%, to close at 52,305.24. The S&P 500 fell 0.22% to 7,483.23, while the Nasdaq Composite declined 0.66% to 26,040.03.

Technology stocks came under pressure as investors booked profits in semiconductor shares after their strong rally in the first half of 2026. Micron and Sandisk dropped more than 10%, while Nvidia and Broadcom also ended lower.

Investors are now awaiting the June US non-farm payrolls report. According to media reports, the US economy is expected to have added about 115,000 jobs during the month.

New Listing:

Shares of CSM Technologies were at Rs 107.35 on the BSE, a discount of 5% compared with the issue price of Rs 113.

The scrip was listed at 113, matching the initial public offer (IPO) price. The stock hit a high of Rs 113 and a low of Rs 107.35. On the BSE, 47,000 shares of the company were traded in the counter.

Auto Sales:

TVS Motor Company rallied 3.72% after the company recorded monthly sales growth of 47%, with sales of 590,003 units in June 2026 as against 402,001 units in June 2025.

Force Motors jumped 5.66% after reporting a 23.50% increase in total sales to 3,568 units in June 2026, compared with 2,889 units in June 2025.

Bajaj Auto shed 0.05%. The company reported a 28% increase in total auto sales to 4,63,202 units in June 2026, compared with 3,60,806 units sold in June 2025.

Maruti Suzuki India slipped 0.46%. The company reported a 19.28% jump in total sales to 2,00,390 units in June 2026 compared with 1,67,993 units in June 2025.

Stocks in Spotlight:

The Nifty IT index climbed 4.64% to 26,965.05 on Thursday, snapping a four-session losing streak as investors returned to beaten-down technology stocks after the recent sharp correction. The sectoral index had fallen 6.52% over the previous four trading sessions.

The rally was broad-based, led by Persistent Systems, which surged 5.93%. Infosys gained 5.82%, followed by Mphasis (up 5.68%), Coforge (up 5.20%), Tech Mahindra (up 4.57%), HCLTech (up 4.56%), Tata Consultancy Services (up 4.45%), LTIMindtree (up 3.54%), Wipro (up 2.27%) and Oracle Financial Services Software (up 0.91%).

Bank of Baroda fell 4.34% after the lender announced an out-of-court settlement with the joint administrators of NMC Health PLC, NMC Healthcare and NMC Holding, resolving litigation related to the collapse of the UAE-based healthcare group. Under the agreement, the bank will pay $600 million (about Rs 5,700 crore) through its Abu Dhabi branch. The bank said the settlement was reached without any admission of liability or wrongdoing and is expected to eliminate a long-running legal overhang by avoiding prolonged litigation and related costs.

Bank of India rose 2.65%. The bank reported 16.58% rise in global business, which stood at Rs 17,55,915 crore as on 30 June 2026 as against Rs 15,06,142 crore as on 30 June 2025.

Dhanlaxmi Bank jumped 5.20% after the bank's gross advances increased 26.47% year-on-year (YoY) to Rs 15,785 crore as of 30 June 2026 from Rs 12,481 crore as of 30 June 2025.

Punjab & Sind Bank rose 1.63% after the bank reported a 19.50% year-on-year increase in gross advances to Rs 1,19,440 crore as of 30 June 2026, from Rs 99,950 crore a year earlier.

Capital Small Finance Bank added 1.67% after the bank's total deposits increased by 16.3% to Rs 10,596 crore as of 30 June 2026 from Rs 9,110 crore as of 30 June 2025.

Tamilnad Mercantile Bank advanced 2.29% after the private sector lender reported healthy business growth for the quarter ended 30 June 2026.

United Drilling Tools rallied 2.07% after the company secured a repeat domestic order worth Rs 3.88 crore from Vedanta for the supply of tubings, pup joints and crossovers in the ordinary course of business.

NMDC rose 1.72% after the company reported a 44.26% year-on-year (YoY) increase in iron ore production to 5.15 million tonnes (MT) in June 2026, compared with 3.57 MT in June 2025.

Baazar Style Retail hit the 5% upper circuit at Rs 307.80 after the value fashion retailer reported a strong business update for the quarter ended 30 June 2026. Standalone revenue from operations rose 29% year-on-year to Rs 486 crore in Q1 FY27 from Rs 377.8 crore in the corresponding quarter last year. Same-store sales growth (SSSG) stood at 7% during the quarter, while sales per square foot increased 2% year-on-year to Rs 679 per month.

Vedanta Aluminium Metal rose 2.15% to Rs 461.65 on Thursday after a domestic brokerage initiated coverage on the stock with a 'Buy' rating and a target price of Rs 550.

GK Energy added 2.43% after the company said it had secured a 10 MW rooftop solar project order worth Rs 48.02 crore.

Coal India rose 0.87% after the company announced that it has received a letter of award worth Rs 2,831.11 crore from Bundelkhand Saur Urja for setting up a 600 MW solar power project at Jalaun Solar Park in Uttar Pradesh.

Crompton Greaves Consumer Electricals advanced 1.73% after securing a domestic order worth Rs 29.77 crore from Maharashtra State Electricity Distribution Company (MSEDCL) for supply of 1,397 solar photovoltaic water pumping systems.

Initial Public Offer (IPO):

Knack Packaging received bids for 13,52,83,104 shares as against 1,89,64,018 shares on offer, according to stock exchange data at 16:42 IST on 2 July 2026. The issue was subscribed 7.13 times.

The issue opened for bidding on 1 July 2026 and it will close on 3 July 2026. The price band of the IPO is fixed between Rs 161 and 170 per share.

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