Closing Bell: Nifty 50, Sensex Jumps 0.7%; IT Stocks Rebound, Crude Oil Falls After U.S.-Iran Talks

Market Update at 04:00 PM: The Indian equity benchmarks ended higher on Thursday, July 2, with the Nifty 50 and Sensex extending gains for a second consecutive session. The rally was driven by a sharp rebound in information technology stocks after four days of declines and easing crude oil prices following positive developments in indirect talks between the U.S. and Iran.

The Nifty 50 opened around 50 points higher and extended its gains through the session, touching an Intraday high of 24,194.55 before settling above the 24,150 mark. At the closing bell, the Nifty 50 advanced 169.85 points, or 0.71 per cent, to 24,175.70. The Sensex climbed 579.48 points, or 0.75 per cent, to end at 77,502.12. The Bank Nifty closed largely unchanged, while the India VIX declined 7.21 per cent, indicating easing market volatility.

Investor sentiment improved after reports that the U.S. and Iran made positive progress during two days of indirect talks held in Doha, Qatar, with mediation by Qatar. According to Reuters, the discussions focused on ensuring safe maritime traffic through the Strait of Hormuz and the possible unfreezing of Iranian funds. The next round of negotiations is expected after the funeral of Iran's late Supreme Leader Ayatollah Ali Khamenei on July 9. The positive outcome of the talks reduced concerns over potential disruptions to global oil supplies, providing relief to equity markets.

Brent crude futures fell below USD 71 per barrel after optimism surrounding the U.S.-Iran discussions eased fears of supply disruptions. Lower crude oil prices are positive for India, as they help reduce the country's import bill, support lower inflation and improve the overall macroeconomic outlook.

Sector-wise, eight of the eleven major sectoral indices ended in positive territory. The broader market also remained firm, with the Nifty Midcap 100 index rising 0.48 per cent and the Nifty Smallcap 100 index gaining 1.25 per cent.

The Nifty IT index emerged as the best-performing sector, surging 4.75 per cent after falling around 6.5 per cent over the previous four sessions. The rally marked the index's strongest intraday gain in nearly a year as investors returned to beaten-down technology stocks.

Infosys led the gains with a rise of more than 5 per cent, while HCLTech, Tata Consultancy Services, Tech Mahindra and Wipro gained between 2 per cent and 5 per cent. The rebound was supported by expectations that weakening artificial intelligence-related momentum in South Korea could improve the relative attractiveness of Indian IT companies, along with improving domestic market sentiment.

In contrast, the Nifty PSU Bank index ended 0.43 per cent lower, making it the weakest-performing sector of the day.

Among individual stocks, Dhanlaxmi Bank gained 5.04 per cent, while Tamilnad Mercantile Bank rose 2.16 per cent after both lenders reported healthy growth in advances during the June quarter. TVS Motor Company climbed 3.8 per cent following its monthly sales announcement and its decision to invest Rs 2,000 crore for the relaunch and expansion of the Norton Motorcycles brand.

Infosys contributed the most to the Nifty 50's gains, adding 42.61 points to the index. ICICI Bank followed with a contribution of 31.64 points, while Tata Consultancy Services added 19.09 points. On the downside, Larsen & Toubro was the biggest drag on the index, reducing it by 8.48 points. Reliance Industries and Axis Bank also weighed on the benchmark, dragging it lower by 6.64 points and 3.83 points, respectively.

Market breadth remained firmly in favour of advancing stocks. Of the 3,452 stocks traded on the NSE, 2,226 advanced, 1,145 declined and 81 closed unchanged. A total of 136 stocks touched their 52-week highs during the session, while 34 stocks hit fresh 52-week lows. Additionally, 130 stocks were locked in their Upper Circuits, whereas 83 stocks ended in their Lower Circuits.

Market Update at 2:35 PM: Indian benchmark equity indices traded higher on Thursday afternoon, supported by strong buying in information technology stocks and easing crude oil prices after the United States and Iran concluded talks in Doha.

As of 2:00 PM, the Nifty 50 was trading 127.85 points, or 0.53 per cent, higher at 24,134.40, while the Sensex gained 418.20 points, or 0.54 per cent, to 77,340.84.

Among the top performers on the Nifty 50, Infosys, HCLTech, and Adani Enterprises emerged as the leading gainers, driving the market's upward momentum.

The broader market also remained in positive territory, with the Nifty MidCap index advancing 0.44 per cent and the Nifty SmallCap index climbing 0.92 per cent.

On the sectoral front, the Nifty IT index surged more than 4 per cent, making it the best-performing sector of the day. The Nifty Realty and Nifty Consumer Durables indices also posted healthy gains. In contrast, the Nifty PSU Bank index was the biggest laggard, trading lower amid selling pressure.

Market Update at 12:19 PM: The benchmark equity indices traded higher in noon deals, supported by a strong rally in information technology stocks and easing crude oil prices following the conclusion of talks between the US and Iran in Doha.

As of 12:00 PM, the Nifty50 was up 0.38 per cent, or 91.45 points, at 24,097.30, while the Sensex gained 0.39 per cent, or 298.90 points, to trade at 77,221.54.

Among the top performers on the Nifty50 were Infosys, HCLTech, and Adani Enterprises, which led the gains during the session.

The broader market also remained positive, with the Nifty MidCap index advancing 0.52 per cent and the Nifty SmallCap index rising 0.69 per cent.

On the sectoral front, the Nifty IT index emerged as the biggest gainer, surging nearly 4 per cent. The Nifty Realty and Nifty Consumer Durables indices also traded firmly in positive territory. In contrast, the Nifty PSU Bank index was the worst-performing sector, trading lower during the session.

Market Update at 09:30 AM: Indian equity markets opened on a positive note, with benchmark indices Nifty 50 and Sensex moving higher on the back of strong buying in IT stocks and easing crude oil prices following diplomatic talks between the U.S. and Iran in Doha.

As of 9:18 AM, the Nifty 50 was trading 76.10 points higher, up 0.32 per cent at 24,081.95, while the Sensex gained 235.79 points or 0.31 per cent to 77,158.43.

The IT sector emerged as the clear outperformer in early trade, supported by renewed optimism in global demand and lower input cost concerns due to softer oil prices. The Nifty IT index surged nearly 3 per cent, leading sectoral gains.

Among individual stocks, Infosys, HCLTech, and Adani Enterprises were the Top Gainers in the Nifty 50 pack, contributing significantly to the index’s upward move.

Broader indices reflected similar optimism, with Mid-Cap and Small-Cap stocks witnessing steady buying interest. The Nifty MidCap index rose 0.33 per cent, while the Nifty SmallCap index gained 0.43 per cent.

Apart from IT, the Nifty Realty and Nifty Consumer Durables indices also traded in the green, supported by selective buying across growth-oriented segments. However, the Nifty PSU Bank index underperformed, emerging as the top laggard among sectoral indices.

Market sentiment was aided by a decline in crude oil prices after reports of progress in discussions between the U.S. and Iran in Doha. Lower oil prices typically benefit oil-importing economies like India by easing inflationary pressures and improving corporate margins.

Pre-Market Update at 7:46 AM: The Indian stock market is expected to open higher on Thursday, July 2, supported by positive global cues. Despite mixed Asian markets and a subdued closing in U.S. equities, domestic sentiment remains firm. As of 7:32 a.m. IST, Gift Nifty was trading near 24,176, a premium of around 137 points over the previous close of Nifty futures, indicating a strong opening for the benchmark indices.

Semiconductor stocks came under pressure globally after the VanEck Semiconductor ETF (SMH) fell 5.4 per cent. Heavy declines in Micron Technology and Sandisk, both down more than 10 per cent, weighed on sentiment across the technology space.

Global geopolitical sentiment remained in focus as U.S. President Donald Trump said indirect talks between the U.S. and Iran in Qatar were making progress. Iran’s Deputy Foreign Minister stated that both sides agreed to set up a communication channel to report violations of their initial understanding, although Tehran clarified that no direct negotiations took place and discussions were aimed at de-escalation after earlier tensions in the region.

Gold extended its recovery as expectations of further U.S. rate hikes eased following comments from Federal Reserve Chairman Kevin Warsh. Spot gold rose 0.3 per cent to USD 4,053.57 per ounce after gaining 0.6 per cent in the previous session, while silver climbed 0.4 per cent to USD 59.35 per ounce.

Crude oil remained under pressure for the third straight session. WTI crude traded near USD 68 per barrel, while Brent hovered below USD 72 per barrel. Prices weakened due to steady shipments through the Strait of Hormuz and improving geopolitical dialogue, marking the weakest quarterly performance for oil since 2020.

The U.S. dollar strengthened ahead of key employment data but later trimmed gains after comments suggesting easing inflation risks. The dollar index was last up 0.17 per cent at 101.41, while the Japanese yen recovered part of its earlier losses after touching multi-decade lows.

From a derivatives perspective, the Put-Call Ratio stands at 1.10, indicating a mildly positive setup. Maximum open interest on both puts and calls is concentrated at the 24,000 strike, making it a crucial level for expiry. Fresh build-up at the same strike reinforces it as a key support-cum-resistance zone.

Nifty 50 gained 0.6 per cent in the previous session to close at 24,005.85, extending its position above key moving averages including the 10-day, 20-day and 50-day EMAs. The broader trend remains positive, though near-term consolidation is visible. A sustained move above 24,000 could push the index towards 24,200–24,300, while 24,500 remains the next resistance zone. On the downside, immediate support lies between 23,900 and 23,850.

Lupin received the Establishment Inspection Report from the U.S. FDA with a Voluntary Action Indicated classification for its Somerset facility in New Jersey. It also secured European Medicines Agency approval for new dosage strengths of NaMuscla at 62 mg and 83 mg.

Hero MotoCorp announced its second Global Parts Centre in Tirupati with an investment exceeding Rs 750 crore, taking its total investment in Andhra Pradesh above Rs 3,200 crore.

Tata Technologies expanded its global partnership with Tenneco LLC, which is expected to invest over USD 100 million over the next five years.

Bharti Airtel’s subsidiary Airtel Money commenced commercial operations as a Type II non-deposit-taking NBFC.

Syngene International saw Siddharth Mittal take charge as Managing Director and Chief Executive Officer from July 1.

Studds Accessories appointed Bharat Goyal as Chief Financial Officer, while Manish Mehta was redesignated as Vice President – Taxation and Compliance.

Coal India received a Rs 2,831.11 crore Letter of Award from Bundelkhand Saur Urja Limited for setting up a 600 MW Solar project.

Srivasavi Adhesive Tapes signed a supply agreement with a global multinational company for polypropylene, HDPE, fabric and related materials.

Sai Parenterals’ Australian subsidiary renewed an exclusive OTC medicines supply contract worth AUD 202 million (around Rs 1,300 crore) for 7.5 years, with an option for a three-year extension.

No stock is under the F&O ban for July 2.

FIIs were net sellers on July 1, offloading equities worth Rs 1,140.50 crore, while DIIs remained net buyers at Rs 3,159.24 crore.

Indian equities ended higher on Wednesday, with Sensex rising 444 points or 0.58 per cent to 76,922.64 and Nifty 50 advancing 140 points or 0.59 per cent to 24,005.85, supported by broad-based buying and easing crude oil prices.

U.S. markets ended slightly lower as weakness in semiconductor and technology stocks outweighed gains in select large caps. The Philadelphia Semiconductor Index dropped 6.3 per cent, reflecting heavy pressure on chip stocks. The Dow Jones slipped 13.96 points to 52,305.24, S&P 500 fell 16.13 points to 7,483.23, and Nasdaq Composite declined 173.69 points to 26,040.03.

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

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