Last Updated on June 30, 2026 10:57 pm by BIZNAMA NEWS
By Our Business Correspondent
Indian equity benchmarks closed lower on Tuesday as heavy selling in information technology and select banking stocks outweighed gains in pharmaceuticals, consumer durables and several mid- and small-cap counters. The decline came during a volatile session marked by the monthly derivatives expiry, with selling intensifying in the final hour of trade.
The BSE Sensex fell 249.70 points, or 0.33%, to 76,478.67, while the Nifty 50 declined 80.50 points, or 0.34%, to close at 23,865.75, slipping below the psychologically important 23,900 level. Over the past two trading sessions, the Sensex has lost 0.8% and the Nifty nearly 0.79%, reflecting cautious investor sentiment despite improving domestic macroeconomic indicators.
Market participants attributed the weakness primarily to profit-taking in large-cap technology stocks after recent gains, alongside expiry-related volatility. Investors also remained selective ahead of upcoming corporate earnings and global economic data releases.
IT Stocks Lead Decline
Technology shares were among the biggest drags on the benchmark indices.
Tata Consultancy Services (TCS) fell 3.09%, Infosys declined 2.96%, while ICICI Bank lost 0.55%, together accounting for a significant portion of the day’s decline in the Nifty.
Despite the weakness in frontline indices, the broader market displayed resilience. The BSE MidCap Index advanced 0.45%, while the BSE SmallCap Index gained 0.51%, indicating continued investor interest in domestic growth-oriented sectors.
Market breadth also remained positive, with 2,349 stocks advancing, 1,884 declining, and 195 remaining unchanged on the BSE.
Industrial Output Strengthens
Fresh macroeconomic data offered support to the broader market.
India’s Index of Industrial Production (IIP) expanded 5.1% in May, up from 4.9% in April, driven by stronger manufacturing activity and robust electricity generation.
Manufacturing—the largest component of industrial output—grew 5.5%, while electricity and gas supply recorded the strongest expansion at 9.9%. Mining and quarrying, however, contracted 1.6% during the month.
Among use-based industries, capital goods posted the fastest growth at around 13%, signalling continued investment activity. Consumer durables expanded 7.2%, infrastructure and construction goods grew 5.9%, while intermediate goods rose 5.8%. Growth in primary goods and consumer non-durables remained relatively subdued.
The latest data reinforced expectations that domestic economic activity continues to remain resilient despite global uncertainties.
Bond Yield Eases, Rupee Firms
In the debt market, the yield on India’s benchmark 10-year government bond eased to 6.707%, compared with 6.755% in the previous session, reflecting steady demand for sovereign securities.
The Indian rupee also traded marginally stronger against the US dollar.
In the commodities market, MCX Gold futures for August delivery edged up 0.09% to ₹1,42,532 per 10 grams, while Brent crude rose marginally to around $73.25 per barrel.
The US Dollar Index (DXY) strengthened to 101.37, while the yield on the benchmark US 10-year Treasury note eased to 4.37%.
Global Markets Mixed
Global markets presented a mixed picture.
European equities traded higher ahead of key economic data releases and speeches by major central bank officials.
Official figures showed that the UK economy expanded 0.6% during the January-March quarter, matching preliminary estimates, although analysts noted that household spending remains under pressure.
The European Commission also announced a sharp reduction in duty-free steel import quotas from July 1 as part of measures aimed at protecting domestic producers.
Asian markets ended mixed. Chinese equities gained after official data showed manufacturing activity returned to expansion in June.
China’s official manufacturing Purchasing Managers’ Index (PMI) rose to 50.3 from 50.0 in May, while the services and construction PMI improved slightly to 50.2, suggesting a gradual recovery supported by technology exports and artificial intelligence-related demand.
Meanwhile, US stock futures pointed to another positive opening following Wall Street’s overnight rally. On Monday, the Dow Jones Industrial Average closed above the 52,000 mark for the first time after Alphabet joined the blue-chip index, while the S&P 500 and Nasdaq Composite also posted strong gains.
Eicher Motors Slides on Delhi EV Policy
Among individual stocks, Eicher Motors was the worst performer on the Nifty, falling 4.38% after the Delhi Cabinet approved the Delhi Electric Vehicle Policy 2026-2030, which comes into force on July 1.
The policy envisages investments of ₹15,000 crore between FY27 and FY30 to accelerate electric mobility in the capital. It proposes that only electric auto-rickshaws will be registered from January 2027, while registrations of new petrol and CNG-powered two-wheelers will cease from April 2028. The policy also expands charging infrastructure and offers incentives for electric vehicle adoption.
Analysts said investors remain concerned that Royal Enfield, Eicher Motors’ flagship motorcycle brand, currently has a relatively limited electric vehicle portfolio, potentially posing a competitive challenge as EV adoption accelerates.
Corporate Developments
Adani Ports and Special Economic Zone gained 1.91% after announcing that Mediterranean Shipping Company (MSC), through its terminal investment arm Terminal Investment Limited (TiL), will acquire a 49% stake in Adani Vizhinjam Port, strengthening the strategic partnership in India’s fast-growing transshipment sector.
Shilpa Medicare climbed 4.43% after its subsidiary Shilpa Biologicals entered into a co-development and supply agreement with Finland’s Orion Corporation for an intravenous nivolumab biosimilar targeting the European market.
Godrej Properties rose 2.02% after acquiring a 47-acre land parcel off Chennai’s Old Mahabalipuram Road for a new residential development.
Waaree Energies advanced 2.35% after its US subsidiary secured an order to supply 236.22 MW of solar modules.
Kalpataru Projects International added 1.70% after announcing fresh orders worth ₹2,957 crore, while KEC International gained 1.38% following new orders valued at ₹1,754 crore across its transmission and cable businesses.
Among healthcare companies, Jagsonpal Pharmaceuticals rallied 4.09% after agreeing to acquire an 85% stake in Aequitas Healthcare, marking its entry into the hospital-focused pharmaceutical segment.
Godavari Biorefineries rose 3.55% after commissioning a grain-based distillery in Karnataka to cater to India’s expanding ethanol blending programme.
Bandhan Bank edged 0.83% higher despite announcing the resignation of Chief Financial Officer Rajeev Mantri, who cited personal career reasons.
IPO Watch
In the primary market, the Aastha Spintex initial public offering received encouraging investor response.
As of Tuesday evening, the issue had been subscribed 1.48 times, receiving bids for more than 20.1 million shares against the 13.6 million shares on offer. The IPO, priced between ₹125 and ₹136 per share, closes for subscription on July 1.
Outlook
Market analysts expect domestic equities to remain range-bound in the near term as investors monitor corporate earnings, macroeconomic indicators, global central bank signals and geopolitical developments. While strong industrial output and resilient domestic demand continue to support medium-term sentiment, profit booking in heavyweight sectors and global uncertainties are likely to keep volatility elevated.