Closing Bell: Nifty 50 Hits 2-Month High, Extends Gains for 3rd Consecutive Session as IT, Realty Stocks Rally

Prajwal DSIJ/ 03 Jul 2026 /Categories: Mkt Commentary, Trending

Closing Bell: Nifty 50 Hits 2-Month High, Extends Gains for 3rd Consecutive Session as IT, Realty Stocks Rally

Nifty 50 recovered and ended the session at 24,270.85, up 95.15 points or 0.39 per cent. The Sensex also finished higher, gaining 261.79 points or 0.34 per cent to settle at 77,763.91.

✨ Key Takeaways

Indian benchmark equity indices ended higher on Friday, July 3, with the Nifty 50 extending its winning streak to a third consecutive session and closing at a two-month high. The rally was led by information technology and realty stocks after softer-than-expected U.S. jobs data eased concerns over near-term Federal Reserve rate hikes, boosting investor sentiment across emerging markets.

The Nifty 50 opened nearly 200 points higher before witnessing some profit booking that dragged it to an Intraday low of 24,252.35. However, the benchmark recovered and ended the session at 24,270.85, up 95.15 points or 0.39 per cent. The Sensex also finished higher, gaining 261.79 points or 0.34 per cent to settle at 77,763.91. In contrast, the Bank Nifty ended the day in negative territory.

Volatility continued to decline, with India VIX falling 4 per cent to slip below the 12 mark, its lowest closing level since the second half of February. On a weekly basis, both the Nifty 50 and Sensex advanced around 0.9 per cent, registering their fourth consecutive weekly gain, supported by lower crude oil prices and measures aimed at strengthening the rupee and attracting foreign inflows.

Sectoral performance remained largely positive, with 6 out of 11 major sectoral indices ending in the green. The broader market, however, delivered a mixed performance as the Nifty Midcap 100 declined 0.19 per cent, while the Nifty Smallcap 100 edged up 0.04 per cent.

The Nifty Realty index emerged as the best-performing sector, surging 2.19 per cent to extend gains for a fourth straight trading session and touch a six-month high.

The Nifty IT index climbed 1.76 per cent, benefiting from expectations that lower U.S. interest rates could support capital flows into emerging markets while improving technology spending in the United States, a key market for Indian IT companies. The rally also helped the index turn positive for the week, putting it on track to snap a five-week losing streak. Despite the rebound, the IT index remains down 27.09 per cent so far this year, making it the biggest drag on the Nifty 50, which has declined about 7 per cent year-to-date.

The Nifty Pharma index gained 1.72 per cent as investors continued to prefer defensive sectors that are relatively insulated from crude oil price volatility and monsoon-related uncertainties. Meanwhile, the Nifty Metal index rose 0.76 per cent, supported by a weaker U.S. dollar and softer expectations of U.S. interest rate hikes.

On the downside, the Nifty PSU Bank index declined 1.54 per cent, emerging as the day's worst-performing sector. The weakness was largely driven by Union Bank of India, whose shares fell more than 7 per cent after its first-quarter business update indicated slower credit growth and a sequential decline in deposits. Although the bank reported healthy year-on-year growth in advances and CASA deposits, investors remained cautious, making the stock the biggest loser in the Bank Nifty index.

Among individual stocks, HCLTech rallied 5.65 per cent after announcing a USD 1.14 billion strategic partnership with a European company, boosting investor confidence. In contrast, retail major D-Mart declined 4.6 per cent after reporting slower sales growth for the June quarter in its operational update. PB Fintech also came under pressure, falling 5.40 per cent following multiple block deals executed at a discount.

The day's rally was largely supported by heavyweight stocks. Bharti Airtel contributed 23.52 points to the Nifty 50's gains, followed by ICICI Bank with 17.84 points and HDFC Bank with 17.23 points. On the other hand, Axis Bank was the biggest drag on the benchmark, shaving off 12.86 points, followed by State Bank of India at 10.48 points and Larsen & Toubro at 8.38 points.

Market breadth remained favourable on the NSE. Out of 3,436 stocks traded, 1,823 advanced, 1,513 declined, while 81 stocks remained unchanged. A total of 149 stocks touched their 52-week highs, whereas 24 stocks hit 52-week lows. Additionally, 102 stocks were locked in their Upper Circuits, while 84 stocks were locked in their Lower Circuits.