The Prime Daily: 02 July 2026

U.S. equity markets opened the second half of 2026 on a downward note, primarily driven by sharp declines in the semiconductor sector. Despite the Dow Jones reaching an intraday record of 52,742, a 423-point gain, it ultimately closed near flatline as high-flying AI stocks like Micron and SanDisk experienced double-digit percentage drops due to intense profit-taking.`

Memory sector stocks came under significant pressure Wednesday as the Nasdaq slipped 0.4% and the broader semiconductor sector pulled back after a record-setting Q2. Weak ADP private payrolls of 98,000 below the expected 113,000 added to macro uncertainty ahead of Thursday’s official jobs report. Economists expect the economy to have added 115,000 jobs last month.

U.S. Federal Reserve Chairman Kevin Warsh stated that inflation risks have moderated in recent weeks while reaffirming the central bank’s commitment to bringing inflation back to its 2% target. He reiterated that the Fed would avoid providing forward guidance on future interest-rate decisions and added that any significant reduction in the central bank’s balance sheet would be gradual and clearly communicated. He pledged that the central bank will not tolerate inflation above its 2% target, promising to deliver price stability regardless of any pressure from the White House.

Asian markets traded mostly lower Thursday, tracking losses on Wall Street in the previous session. South Korea’s Kospi led losses in Asia, falling 5.36% at the open, prompting the Korean Exchange to temporarily halt trading for five minutes to curb volatility.

RBI Governor Sanjay Malhotra indicated that India is unlikely to raise its official inflation target and suggested there could be a case for lowering it over the longer term. He noted that India’s inflation-targeting framework has successfully reduced average inflation, while reiterating the RBI’s commitment to maintaining price stability.

Gross and net GST collections increased 13.9% YoY and 11.2% YoY, respectively, in June. Growth was driven by a strong 34.6% YoY rise in import-related revenues, while domestic GST collections grew a relatively modest 6.5% YoY. Gross GST collections stood at ₹1.95 tn, with net collections at ₹1.62 tn after refunds.

The Indian rupee extended its losing streak for the third straight session yesterday, depreciating by 59 paise to close at 95.25 against the US dollar. The decline was driven by short covering and a strengthening dollar, as well as weakness across Asian currencies. Sentiment has turned cautious following the breach of the 95 mark.

Nifty snapped its two-session losing streak, advancing 140 points to close at 24,005. Nifty continues to trade within a consolidation band. A decisive move above 24,261 is required to revive bullish momentum, while the 23,780–23,895 zone remains a crucial support area to cushion near-term declines.