Indian stock market saw healthy buying across segments, which drove the benchmarks, the Sensex and the Nifty 50, higher for the second consecutive session on Thursday, 2 July.
The Sensex ended at 77,502.12, rising 579 points, or 0.75%, while the Nifty 50 rose by 170 points, or 0.71%, to end at 24,175.70. The Nifty Midcap 100 index rose by 0.48%, while the Smallcap 100 index jumped 1.25%.
IT stocks hogged the limelight, with Infosys, Tech Mahindra, TCS, and HCL Tech among the top gainers in the Sensex index.
The stock market rose as crude oil prices fell further after reports said the US and Iran concluded indirect talks in Doha, Qatar, on Wednesday. The talks were focused on the Strait of Hormuz, but there was little progress toward a deal to secure lasting peace in the region.
Meanwhile, the rupee declined 24 paise to close at 95.40 per dollar.
Broad-based buying lifted the overall market capitalisation of BSE-listed firms to nearly ₹480 lakh crore from ₹476.50 lakh crore in the previous session, making investors richer by about ₹3.5 lakh crore in a day.
What drove the stock market higher today?
Market sentiment has improved as most macroeconomic concerns are subsiding now.
Lower oil prices have calmed concerns over inflation and the resulting interest rate hikes. Federal Reserve Chair Kevin Warsh on Wednesday said inflation risks had eased and signalled that the US Fed may not opt for aggressive rate hikes this year.
“Indian markets ended higher as easing tensions around the Strait of Hormuz pushed crude prices lower, while dovish remarks from the Fed Chair reinforced expectations of moderating inflation and a supportive global rate environment,” Vinod Nair, Head of Research, Geojit Investments, noted.
“Sentiment was further aided by optimism surrounding the India–Japan Summit, with investors anticipating deals on trade, defence, semiconductors, AI cooperation, a proposed rupee-yen settlement framework and deepening bilateral capital flows,” Nair said.
Among sectors, Nifty IT surged 4.64%, largely due to short covering, as industry experts believe Indian IT firms will remain critical to enterprise AI adoption.
(This is a developing story. Please check back for fresh updates.)
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