Last Updated on July 2, 2026 11:11 pm by BIZNAMA NEWS
Our Business Correspondent
Indian benchmark indices extended their winning streak for a second consecutive trading session on Thursday, driven by robust, broad-based buying in information technology (IT) and automobile stocks. Domestic market sentiment was further bolstered by softening global crude oil prices, which slid amid reports of ongoing diplomatic progress in US-Iran peace talks.
The Nifty 50 comfortably reclaimed and closed above the crucial 24,150 mark. Concurrently, the Nifty IT index staged a spectacular recovery, surging nearly 5% to snap a painful four-day losing streak. Broader market indices outpaced their large-cap peers, heavily supported by small-cap counters. However, public sector (PSU) banking shares failed to participate in the rally, bucking the positive momentum to finish lower.
Benchmark Indices and Market Breadth
The S&P BSE Sensex surged 579.48 points, or 0.75%, to settle at 77,502.12. In tandem, the broader Nifty 50 advanced 169.85 points, or 0.71%, to close at 24,175.70. With today’s gains, the two-session cumulative recovery stands at 1.33% for the Sensex and 1.29% for the Nifty.
The day’s market heavyweights providing the maximum upward leverage to the Nifty included:
- Infosys: Up 5.82%
- TCS: Up 4.45%
- ICICI Bank: Up 1.54%
In the broader asset ecosystem, risk-on sentiment was clearly visible. The BSE 150 MidCap Index climbed 0.65%, while the BSE 250 SmallCap Index registered a superior performance, gaining 0.98%.
Market breadth remained firmly in positive territory. On the BSE, 2,536 shares advanced, 1,740 shares declined, and 191 shares remained unchanged. Reflecting decreased investor anxiety, the National Stock Exchange’s volatility gauge, India VIX, tumbled 7.21% to settle at 12.29, indicating a cooling off in near-term risk perceptions.
Macroeconomic Trajectory: Fiscal Deficit and Key Metrics
On the macroeconomic front, data released for the early leg of the financial year highlighted an accelerating fiscal curve. India’s fiscal deficit reached Rs 1.62 lakh crore during the first two months of FY27 (through May 2026). This figure represents 9.6% of the full-year budgetary target, a sharp increase from the 0.8% recorded in the corresponding period of the previous fiscal year.
Fiscal Snapshot (April–May FY27):
- Total Receipts: Rs 7.19 lakh crore
- Total Expenditure: Rs 8.81 lakh crore
- Revenue Receipts: Rs 6.99 lakh crore (comprising Rs 3.48 lakh crore in tax revenue and Rs 3.51 lakh crore in non-tax revenue)
Fixed Income, Forex, and Commodities
- Bond Yields: The yield on India’s 10-year benchmark federal paper dropped 0.58% to 6.721, down from its previous close of 6.760. Meanwhile, the United States 10-year bond yield ticked up 0.42% to 4.494.
- Currency Markets: The Indian rupee exhibited mild weakness against the greenback. The partially convertible rupee closed lower at 95.3950 per dollar compared to its previous close of 95.1650. The US Dollar Index (DXY), tracking the greenback against a basket of six major currencies, weakened by 0.33% to 101.10.
- Commodities: In the international energy markets, Brent crude futures for September 2026 settlement dropped $1.06 or 1.48% to $70.51 a barrel, driven by easing geopolitical friction. On the Multi Commodity Exchange (MCX), gold futures for August 5, 2026 settlement edged up marginally by 0.04% to Rs 1,44,488.
Sectoral Highlights and Corporate Action
1. The Great IT Rebound
The Nifty IT index was the undisputed star of Thursday’s session, soaring 4.64% to close at 26,965.05. The massive rebound effectively recouped a significant chunk of the 6.52% value the index shed during its four-session losing streak.
| IT Company | Share Price Movement |
| Persistent Systems | Up 5.93% |
| Infosys | Up 5.82% |
| 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% |
| Oracle Financial Services Software | Up 0.91% |
2. Auto Sales Despatches Prompt Mixed Reactions
Auto stocks reacted sharply to their newly released June 2026 sales volumes:
- TVS Motor Company zoomed 3.72% following a stellar 47% YoY growth, clocking monthly sales of 5,90,003 units.
- Force Motors surged 5.66% after reporting a 23.50% YoY expansion in total sales to 3,568 units.
- Bajaj Auto closed flat, down marginally by 0.05%, despite posting a strong 28% YoY sales surge to 4,63,202 units.
- Maruti Suzuki India slipped 0.46% to close in the red, even as total monthly despatches rose 19.28% YoY to 2,00,390 units.
3. Banking & Corporate Updates
- Bank of Baroda plunged 4.34% following an out-of-court settlement via its Abu Dhabi branch with the joint administrators of NMC Health PLC, NMC Healthcare, and NMC Holding. The bank will pay $600 million (approx. Rs 5,700 crore) to resolve long-standing litigation. Management clarified that the settlement carries no admission of liability or wrongdoing but successfully eliminates a major legal overhang.
- Bank of India rose 2.65% on the back of a 16.58% YoY growth in global business, which reached Rs 17,55,915 crore as of June 30, 2026.
- Dhanlaxmi Bank gained 5.20% after gross advances expanded 26.47% YoY to Rs 15,785 crore.
- Punjab & Sind Bank advanced 1.63% with gross advances rising 19.50% YoY to Rs 1,19,440 crore.
Mid-Cap and Small-Cap Order Wins
A flurry of corporate operational updates and order execution letters steered individual small and mid-cap listings:
- Baazar Style Retail hit its 5% upper circuit at Rs 307.80 after a robust Q1 FY27 business update. Standalone revenue jumped 29% YoY to Rs 486 crore, with Same-Store Sales Growth (SSSG) solid at 7%.
- Coal India rose 0.87% on securing a Rs 2,831.11 crore letter of award from Bundelkhand Saur Urja for a 600 MW solar power project at Jalaun Solar Park, Uttar Pradesh.
- Vedanta Aluminium Metal rose 2.15% to Rs 461.65 after a domestic brokerage initiated coverage with a ‘Buy’ rating and a target price of Rs 550.
- NMDC climbed 1.72% on a massive 44.26% YoY increase in June iron ore output to 5.15 million tonnes.
Global Markets and Primary Equity
Capital Market Events
The primary markets showcased mixed trends. On the listing front, CSM Technologies had a muted debut, closing at Rs 107.35 on the BSE—a 5% discount to its issue price of Rs 113. Conversely, the ongoing IPO of Knack Packaging witnessed robust traction, receiving bids for over 13.52 crore shares against an offer of 1.89 crore shares on day two, translating into a 7.13 times subscription. The issue closes on July 3, 2026, within a price band of Rs 161–170.
International Landscapes
Globally, markets displayed fragmentation. Wall Street closed mixed overnight as a profit-booking wave hit high-flying semiconductor counters. Tech giants like Micron and Sandisk tumbled over 10%, pulling the Nasdaq Composite down 0.66% to 26,040.03. Meanwhile, the Dow Jones Industrial Average hit brief record highs before closing flat, down 0.03% at 52,305.24. Investors now eye the upcoming US non-farm payrolls data, with consensus estimates pointing toward an addition of 115,000 jobs in June.
In Asia, South Korea’s Kospi bucked the regional upward bias, crashing 7.36%. The steep decline triggered a five-minute volatility trading halt via the Korea Exchange circuit breakers. European indices, meanwhile, traded comfortably higher as investors balanced hawkish commentary from central bankers against steady regional macroeconomic prints.