Last Updated on July 3, 2026 7:06 pm by BIZNAMA NEWS

Third Straight Session of Gains on US Rate Cut Hopes

Our Business Correspondent

Indian benchmark indices extended their winning streak for a third consecutive session on Friday, July 3, 2026, buoyed by supportive global cues and heightened expectations of an imminent interest rate cut by the US Federal Reserve. A weaker-than-expected US non-farm payrolls report underscored cooling economic momentum in the world’s largest economy, driving capital toward emerging market equities.

The Nifty 50 closed near its intraday highs, driven by robust buying in information technology, healthcare, and metal sectors, though second-half profit booking pared some gains. Simultaneously, domestic economic indicators signaled moderation, as India’s June Services PMI cooled to a 17-month low of 57.4, indicating macro deceleration despite staying in expansionary territory.

Market Performance and Breadth

The domestic equity indices maintained positive momentum throughout the day, closing in the green despite afternoon profit realization. The S&P BSE Sensex advanced by 261.79 points, or 0.34%, to settle at 77,763.91. The broader Nifty 50 index rose 95.15 points, or 0.39%, finishing at 24,270.85. Over the last three trading sessions, both indices recorded strong cumulative performances, with the Sensex rallying 1.68% and the Nifty jumping 1.69%.

Market Performance Summary (July 3, 2026)
+------------+-------------+---------+-------------+
| Index      | Close       | Change  | % Change    |
|------------+-------------+---------+-------------|
| BSE Sensex | 77,763.91   | +261.79 | +0.34%      |
| Nifty 50   | 24,270.85   | +95.15  | +0.39%      |
| 3-Day Gain | —           | —       | ~1.69%      |
+------------+-------------+---------+-------------+

Heavyweights provided substantial architectural support to the benchmark indices. Bharti Airtel led the gainers with a 1.81% rise, alongside private banking giants ICICI Bank (up 0.91%) and HDFC Bank (up 0.70%).

The broader markets, however, underperformed the benchmarks. The BSE 150 MidCap Index fell 0.25%, while the BSE 250 SmallCap Index managed a minor gain of 0.09%. Market breadth remained positive on the Bombay Stock Exchange (BSE), with 2,257 advancing shares against 1,986 declining counters, while 202 stocks remained unchanged. Near-term risk perception diminished sharply as the National Stock Exchange’s volatility gauge, India VIX, tanked 3.98% to settle at 11.80.

Macroeconomic Update: Domestic Services Growth Moderates

On the macroeconomic front, India’s vital services sector exhibited a loss of momentum. The seasonally adjusted HSBC India Services PMI Business Activity Index eased sharply to 57.4 in June from 59.8 in May.

While the reading remains comfortably above the 50-point threshold—demarcating expansion from contraction—it marks the weakest pace of expansion in 17 months. High client resistance and challenging domestic market conditions weighed on aggregate output.

Key Takeaways from June Services PMI:

• Hiring: Employment generation remained largely stagnant as firms showed caution regarding payroll expansion.
• Business Sentiment: Corporate optimism toward future output hit soft patches, matching the broader slowdown.
• Input Costs: Inflationary pressures eased, offering temporary relief to corporate margins.
• Exports: Conversely, international demand provided a silver lining, with new export orders expanding at their fastest clip in three months.

Global Markets & The US Payroll Catalyst

Global equity sentiment was largely risk-on, dictated by overnight macro metrics from the United States. Wall Street delivered a mixed session prior to closing for the July 4th Independence Day holiday. The Dow Jones Industrial Average achieved a record closing high of 52,900.07, gaining 1.14%. Conversely, the S&P 500 remained flat at 7,483.24, and the tech-heavy Nasdaq Composite dropped 0.8% to 25,832.67 due to profit booking in semiconductor lines.

The pivotal catalyst was June’s US non-farm payroll data, which revealed an addition of just 57,000 jobs—substantially below Wall Street consensus estimates of 110,000 and significantly lower than May’s downwardly revised 129,000. This clear evidence of labor market cooling heavily reinforced the case for the Federal Reserve to cut its benchmark interest rate at its upcoming monetary policy meeting.

In reaction, European and Asian indices mostly logged gains on Friday. Regionally, purchasing managers’ data revealed resilient trajectories:

• Japan: The S&P Global Japan Services PMI rebounded to 52.2 in June from a flat 50.0 in May, returning to expansionary territory despite geopolitical headwinds in the Middle East.
• China: The Caixin China General Services PMI moderated slightly to 54.1 in June from 54.4 in May. While new domestic business growth decelerated, export demand grew at its fastest pace in 20 months.

Fixed Income, Forex, and Commodities

• G-Sec Market: The yield on the domestic 10-year benchmark federal paper edged up slightly by 0.04% to close at 6.716, compared to its previous close of 6.713.
• Currency: The Indian Rupee strengthened against the greenback, capitalizing on a weakening US dollar. The partially convertible rupee hovered at 95.1800, gaining ground from the prior close of 95.3550. The US Dollar Index (DXY) fell 0.13% to 100.48.
• Commodities: In global energy markets, Brent crude for September 2026 settlement stayed steady, gaining 5 cents (0.07%) to trade at $71.85 per barrel. On the domestic front, bullion prices surged; MCX Gold futures for August 5, 2026 settlement jumped 1.43% to settle at a high of ₹147,850.

Corporate Actions and Stocks in the Spotlight

PB Fintech (Policybazaar)

Shares of the online insurance aggregator slumped 5.71% to ₹1,586 amid heavy institutional block deal activity. Foreign Direct Investment (FDI) shareholder Macritchie Investments reportedly executed a block deal to liquidate up to 1.19 crore shares, equivalent to a 2.6% stake. The transaction floor price was set at ₹1,604 per share, representing a 4.6% discount to Thursday’s close, with the total deal value estimated at ₹1,908.80 crore.

HCL Technologies

The IT services provider jumped 5.74% after signing a strategic digital transformation agreement with a Europe-headquartered, Fortune Global 50 enterprise. HCL Tech will overhaul the client’s global digital workplace and enterprise networks using advanced Artificial Intelligence (AI) protocols.

Sumitomo Chemical India

The stock skyrocketed 13.55% following major global developments from its Japanese parent firm. Sumitomo Chemical disclosed that its South Korean subsidiary, Dongwoo Fine-Chem, has signed a joint venture with Samsung Electro-Mechanics to enter the high-growth glass core substrate segment for advanced semiconductor packaging.

Union Bank of India

The public sector lender fell 3.70% following a provisional Q1 FY27 business update. Although the bank achieved double-digit annualized growth in advances (up 12.50% YoY to ₹10,96,331 crore), investors reacted negatively to sequential declines. Total deposits dropped 1.80% QoQ to ₹12,83,365 crore, while domestic CASA deposits slid 2.12% sequentially to ₹4,50,220 crore.

Other Notable Corporate Movers

• Zydus Lifesciences (+3.92%): Collaborated with Apollo Hospitals through an MoU to launch ‘Shield’, a premier Multi-Cancer Detection (MCD) test in India.
• Bluspring Enterprises (+3.89%): Its subsidiary, STEAG Energy Services (India), secured a comprehensive O&M contract worth ₹1,437.17 crore from Vedanta Aluminium Metal for a 1,215 MW captive power plant.
• Bajaj Finance (+1.28%): Logged high operational growth as new loans booked rose 20% YoY to 1.61 crore in Q1 FY27.
• Mahindra & Mahindra Financial Services (-5.39%): Slipped despite estimating Q1 disbursements at approximately ₹15,560 crore, indicating a 21% YoY expansion.

Primary Market: Knack Packaging IPO Subscribed 83.14 Times

The primary market witnessed extraordinary retail and institutional interest as the Initial Public Offering (IPO) of Knack Packaging concluded its bidding timeline on July 3, 2026. Data from the exchanges showed the issue was subscribed 83.14 times, receiving bids for 1,57,67,00,840 shares against an offer size of 1,89,64,018 shares. The price band for the public issue was fixed between ₹161 and ₹170 per share.