Nifty, Sensex Rise for a Second Day as IT Stocks Stage Sharp Rebound

Mumbai, July 2: Indian equity benchmarks ended on a strong note on Thursday, extending their gains for a second day, their rise led by a powerful rebound in information technology stocks, as investors cheered lower crude oil prices and improving global risk sentiment.
 

The Sensex climbed 579.48 points, or 0.75%, to close at 77,502.12, while the Nifty 50 gained 169.85 points, or 0.71%, to settle at 24,175.70, holding comfortably above the 24,150 level. 

Market breadth remained positive, with 2,436 stocks advancing, 1,663 declining and 165 remaining unchanged, indicating broad-based buying interest across the market. 

IT stocks snap four-day losing streak 

Technology stocks spearheaded Thursday’s rally, with the Nifty IT index surging nearly 5% to snap a four-session losing streak. 

Sensex rose as bargain hunters swooped on beaten down IT stocks. Source: BSE 

Infosys, Tata Consultancy Services (TCS), Tech Mahindra and HCL Technologies were among the top performers on the benchmark index as investors returned to the beaten-down sector after recent losses. 

Analysts attributed the rebound to bargain buying, easing concerns over global growth and improving investor sentiment following a decline in crude oil prices after signs of progress in U.S.-Iran talks. 

Auto, metals and realty also shine 

Buying interest extended beyond technology stocks, with the Nifty Auto, Realty, Consumer Durables and Metal indices each gaining around 1%. 

Metal counters remained in focus as investors continued to accumulate the recently listed Vedanta group entities. Vedanta Oil & Gas and Vedanta Power touched fresh record highs, while Vedanta Iron & Steel remained locked in the upper circuit, extending their strong post-listing rallies. 

Auto stocks also benefited from softer crude oil prices, which are expected to ease input cost pressures for manufacturers. 

Capital goods, PSU banks underperform 

Not all sectors participated in the rally. 

The Capital Goods, Power, Telecom and PSU Bank indices ended 0.4% to 0.7% lower, reflecting selective profit booking. 

Nifty 50 went up as investors cheered the slide in oil and the surge in tech. Source: NSE 

On the Nifty, Infosys, TCS, Tech Mahindra, HCL Technologies and Bajaj Finserv emerged as the top gainers. On the other hand, Max Healthcare, Larsen & Toubro, Nestle India, Axis Bank and Tata Motors Passenger Vehicles were among the biggest laggards. 

Broader markets shine 

The broader market also remained upbeat, with the Nifty Midcap 100 index rising 0.5% and the Nifty Smallcap 100 advancing 1.2%, reflecting continued participation beyond the benchmark heavyweights. 

The positive breadth suggested investors were selectively accumulating stocks across sectors despite lingering uncertainty around global trade and geopolitical developments. 

Outlook 

Market participants said easing crude oil prices continue to be supportive for Indian equities as they help reduce inflationary pressures and improve the country’s macroeconomic outlook. 

Going forward, investors will keep a close watch on global central bank commentary and developments surrounding U.S.-Iran negotiations for fresh market cues. Stock-specific action is also expected to remain in focus.

Source

•  NSE
• BSE