Stock Market Close Report, July 1, 2026: Financials, FMCG, Autos Drive Markets Higher as IT Slumps on KPIT Scare

Mumbai, July 1: Indian equities witnessed broad-based buying on Wednesday, with 12 of the 16 major sectoral indices ending in the green as investors lapped up domestic-focused stocks, helping the benchmark indices snap a two-day losing streak. 

The Nifty Realty index emerged as the session’s top performer, soaring 3.6%, while the Nifty FMCG and Nifty Media indices advanced around 2% each. The Nifty Auto, Nifty Financial Services and Nifty PSU Bank indices also gained about 1%, reflecting optimism over robust monthly automobile sales, steady domestic demand and interest in financial stocks. 

The rally came despite lingering concerns over geopolitical tensions in the Middle East and uncertainty surrounding the U.S. Federal Reserve’s interest rate trajectory. 

Realty Stocks Outperform 

Real estate stocks led the gains as investors accumulated rate-sensitive counters. 

Godrej Properties (up 5%), DLF (4.6%), Prestige Estates Projects (3.9%), and Oberoi Realty (2%) were among the prominent gainers, lifting the Nifty Realty index to the top of the sectoral leaderboard. Market participants favoured the sector amid expectations that easing oil would keep borrowing costs low and support housing demand. 

FMCG, Financials Attract Buying

Nifty FMCG surged as cooling oil encouraged consumption hopes and inspired demand outlook for the sector. Source: NSE

Consumer stocks witnessed strong buying throughout the session as declining oil inspired strong demand and stable margin hopes, with Nestle India (up 3.5%), Hindustan Unilever (3%), Britannia Industries (2.2%) and Dabur India (5.3%) advancing sharply.  

Financial stocks also provided strong support to the benchmarks. State Bank of India (up 2%) and Axis Bank (1.7%) traded higher, while Bajaj Finance (up 1%) and Shriram Finance (up 0.6%) helped lift the broader financial services index. 

Auto Stocks Accelerate on Sales Data 

Automobile shares remained in focus after encouraging June sales figures. 

Mahindra & Mahindra climbed after reporting a 37% year-on-year increase in total vehicle sales for June, while Ashok Leyland gained on healthy commercial vehicle dispatches. Buying also extended to Maruti Suzuki (up 2%) and Tata Motors (2%). 

IT Bears the Brunt

Nifty Auto revved up on sales data as investors cheered healthy dispatches for the month of June. Source: NSE

Technology stocks were the session’s biggest drag, with the Nifty IT index sliding 2% to mark its fourth consecutive day of losses. 

The decline came amid a 17% stock plunge in KPIT Technologies, after the company projected a sequential decline in June-quarter dollar revenue and operating profit, citing weaker demand from European automotive customers. The disappointing outlook weighed on the broader technology pack, pulling down HCL Technologies, Tech Mahindra, TCS, Infosys and Wipro as investors turned cautious over global IT spending. 

Nifty IT took a plunge again as KPIT Technologies came to scare the stocks. Source: NSE 

Metals, Pharma Also Under Pressure 

Metal shares remained subdued as concerns over global growth weighed on sentiment. Hindalco Industries, Tata Steel, JSW Steel and SAIL traded lower, dragging the Nifty Metal index down about 1%. 

Pharmaceutical stocks also saw mild selling, with Dr Reddy’s Laboratories, Cipla and Lupin ending lower, resulting in the Nifty Pharma index closing 0.6% lower. 

Despite weakness in export-oriented sectors such as IT and metals, robust buying in domestic-facing industries ensured the market finished firmly in positive territory, highlighting investors’ preference for sectors tied to India’s consumption and infrastructure growth story. 

Source

•  NSE