The Indian stock market began the July series on a positive note, with both benchmark indices gaining more than 0.5%, led by strong buying in realty, FMCG, and auto stocks, which offset weakness in IT and metal shares.
The Nifty 50 ended the session at 24,005, up 0.60% from the previous close, while the Sensex gained 0.52% to settle at 76,873. The broader market also reflected the positive sentiment, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices ending over 0.30% higher.
A strong June sales update from Mahindra & Mahindra lifted the broader auto pack, helping the Nifty Auto index rise 1.15%. Nifty Realty, Nifty Media, and Nifty FMCG emerged as the top-performing sectoral indices, gaining 3.58%, 2.08%, and 2.07%, respectively.
Nifty PSU Bank and Nifty Private Bank also ended the session with gains of nearly 1% each. On the other hand, Nifty IT was the worst-performing sector, declining 2%, while Nifty Metal and Nifty Chemicals fell 1% and 0.60%, respectively.
In the commodity market, crude oil prices remained elevated as peace talks between the US and Iran encountered fresh hurdles. Iran reportedly said on Tuesday that it would not meet senior US envoys who had travelled to the region following the latest escalation in hostilities.
Vinod Nair, Head of Research, Geojit Investments Limited, said, “The domestic markets entered H2CY26 on an optimistic footing as multiple headwinds began to abate, with the anticipated US-India trade agreement, easing Middle East tensions, and benign oil prices emerging as the key drivers of positive sentiment.”
The recovery was broad-based with an outperformance of large caps due to a favourable valuation and an expectation of a partial reversal of FPI sentiment after the last two years of outflows.
“While near-term sentiment remains constructive, markets are likely to stay data-dependent, with investors balancing improving domestic fundamentals against evolving global macroeconomic and geopolitical developments,” he further added.
Infrastructure, railway and new-age tech stocks shine amid improving sentiment
Shares of infrastructure, consultancy, and engineering firm RITES jumped 14% to ₹233 apiece after the company secured a ₹175.41 crore project management consultancy (PMC) contract from Babasaheb Bhimrao Ambedkar University (BBAU) for infrastructure development works on its campus.
The rally was followed by Reliance Power, Delhivery, Hexaware Technologies, and Aegis Logistics, which surged between 6.3% and 9.5%.
Meanwhile, new-age technology stocks also witnessed strong buying, with Eternal, Paytm, CarTrade Tech, PB Fintech, Swiggy, and Lenskart Solutions gaining 5.7%, 5.45%, 4.5%, 3.4%, 3.2%, and 3%, respectively.
Improving market sentiment also lifted capital market-linked stocks, with JM Financial, MCX, and Angel One advancing more than 3% each.
Railway stocks also attracted fresh buying interest, led by RailTel Corporation, which climbed 3% to ₹317 after securing a ₹107.61 crore domestic order from Mahanadi Coalfields, a subsidiary of Coal India. FMCG major Dabur India closed the session with 5.34% surge.
KPIT profit warning drags IT stocks; Apar extends losing streak
KPIT Technologies emerged as the biggest loser among the Nifty 500 stocks, plunging 17% to ₹557 apiece after issuing a profit warning for the June quarter and lowering its outlook for the rest of FY27. The company flagged a 1% year-on-year decline in dollar revenue for the first quarter, citing weaker-than-expected business conditions.
The weak guidance weighed heavily on the broader IT pack, with Coforge, Birlasoft, HCL Technologies, Tech Mahindra, Tata Communications, and TCS falling between 2.5% and 6.5%.
Meanwhile, Apar Industries extended its losing streak for the fourth consecutive session, declining another 7%. Himadri Speciality Chemical also gave up part of its recent gains, slipping 5% to ₹645 apiece.
Other notable losers included Muthoot Finance, Tata Power, Polycab India, Latent View Analytics, IIFL Finance, Waaree Energies, JSW Energy, and Manappuram Finance, all of which declined more than 2%.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
