Closing Bell: Sensex, Nifty Rally for 4th Straight Day on Bank Gains and Defence Buzz

Indian equity markets extended their winning momentum on Monday, July 6, as the Nifty 50 and Sensex closed higher for the fourth consecutive trading session. Gains were driven by strong performance in Banking stocks, renewed buying interest in Defence counters, and easing crude oil prices that supported overall sentiment.

The Nifty 50 index opened 36 points higher and maintained its upward momentum throughout the session. It touched an Intraday high of 24,458.65, trading above the 200-day exponential moving average for the first time since February 27, 2026. At the close, the index settled at 24,430.35, up 159.50 points or 0.66 per cent.

The Sensex also ended firmly in positive territory, rising 521.16 points or 0.67 per cent to close at 78,285.07. The Bank Nifty snapped a 2-day losing streak and ended 0.61 per cent higher. India VIX remained stable and stayed below the 12 mark, indicating subdued volatility.

Banking stocks were in focus as several private lenders released their provisional June quarter updates, highlighting healthy credit growth trends. The banking index gained around 0.7 per cent, supported by strong loan growth across major lenders. HDFC Bank rose sharply after reporting strong advances growth, while Axis Bank also gained on robust business numbers. Another private lender advanced 1.7 per cent after reporting 18.8 per cent year-on-year growth in gross advances. However, one private sector bank declined 3.4 per cent due to sequential moderation in loan and deposit growth.

Overall, most banks reported steady or better-than-expected June quarter business performance, though investors continued to monitor pressure on CASA ratios and its impact on net interest margins.

Defence counters witnessed strong buying interest after the Defence Acquisition Council approved capital procurement proposals worth Rs 52,000 crore. The approvals cover key weapon systems for the Indian Army, boosting expectations of higher order inflows for defence companies. Following the announcement, stocks such as Zen Technologies Ltd, Paras Defence and Space Technologies Ltd, Bharat Electronics Ltd, and Bharat Dynamics Ltd saw notable gains, supported by optimism around sustained government defence spending.

On the sectoral front, 8 out of 11 key indices ended in the green. Broader market sentiment remained strong, with midcap and smallcap indices outperforming. The Nifty Midcap 100 index rose 0.45 per cent, while the Nifty Smallcap 100 index gained 0.75 per cent, marking an 18-month high for the segment.

The Nifty Realty index was the top sectoral gainer, surging 1.81 per cent and extending its winning streak to five consecutive sessions. The index has gained over 10 per cent in the last five trading sessions and also touched a 6-month high. In contrast, the Nifty Media index declined 0.95 per cent, weighed down by weakness in select stocks such as Zee Entertainment Enterprises Ltd, extending its losing streak to two sessions.

Among individual movers, FSN E-Commerce Ventures Ltd (Nykaa) gained 1.03 per cent after its quarterly update indicated sustained revenue growth momentum. Oberoi Realty Ltd rose 1 per cent after hitting a fresh 52-week high, supported by strong sales bookings of around Rs 8,109 crore from its Gurugram luxury residential project.

Key contributors to index gains included HDFC Bank (+96.40 points), Reliance Industries (+25.53 points), and ICICI Bank (+24.26 points). Major drags on the index were Kotak Mahindra Bank (-24.85 points), Tata Consultancy Services (-8.01 points), and Infosys (-3.83 points).

Market breadth remained positive on the NSE. Out of 3,462 stocks traded, 1,578 advanced, 1,769 declined, and 115 remained unchanged. A total of 146 stocks hit 52-week highs, while 41 touched 52-week lows. Additionally, 114 stocks hit Upper Circuits and 99 stocks hit Lower Circuits, reflecting strong stock-specific action across the market.

Disclaimer: The article is for informational purposes only and not investment advice.