Sensex opening at 83,685.66, and is rising further to 83,845.39, a gain of 238.93 points or 0.29%; Nifty opened at 25,551.35 and moved up to 25,583.35 up 66.30 points or 0.26%
Benchmark indices opened on a positive note on July 1, with the Sensex opening at 83,685.66, up from its previous close of 83,606.46, and rising further to 83,845.39 at 9:50 am, a gain of 238.93 points or 0.29 per cent.
Similarly, the Nifty opened at 25,551.35 compared to its previous close of 25,517.05, and moved up to 25,583.35 at 9:50 am, up 66.30 points or 0.26 per cent. The modest gains came despite lingering concerns over US-India trade negotiations ahead of the July 9 deadline.
“Overnight, US stocks climbed as Trump’s tax bill advanced in the Senate, with the S&P 500 and Nasdaq hitting fresh all-time highs,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd. However, he cautioned that “Nifty may struggle to move higher until the US-India trade tariff deal is finalised.”
The morning session saw Apollo Hospitals leading the gainers with a 3.29 per cent surge to ₹7,480, followed by Bharat Electronics Limited (BEL) which jumped 3.11 per cent to ₹434.60. Asian Paints gained 1.49 per cent to ₹2,376, while Reliance Industries advanced 1.18 per cent to ₹1,518.30 and Jio Financial Services rose 0.95 per cent to ₹329.85.
On the downside, Axis Bank faced selling pressure, declining 1.45 per cent to ₹1,181.80. Trent fell 0.99 per cent to ₹6,156, Sun Pharma dropped 0.79 per cent to ₹1,662.50, while Eicher Motors and Cipla declined 0.68 per cent and 0.56 per cent respectively.
“With the mother market US setting new record highs, the global equity market mood is positive,” noted Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. He highlighted that “sustained weakness in the dollar (dollar index now at 96.81) means the possibility of heavy selling by FIIs is low.”
The previous session on June 30 witnessed significant institutional activity, with Foreign Institutional Investors (FIIs) selling equities worth ₹831 crore while Domestic Institutional Investors (DIIs) purchased ₹3,497 crore worth of shares. The India VIX volatility index rose 3.21 per cent to 12.7850, indicating increased market uncertainty.
Technical analysts are watching key support and resistance levels closely. “From a technical perspective, a ‘Bearish Engulfing’ pattern on daily charts signals caution — key support at 25,229,” Tapse explained. Hardik Matalia from Choice Broking suggested that “Nifty can find support at 25,500 followed by 25,400 and 25,300, while on the higher side, 25,600 can be an immediate resistance.”
Market participants are keeping a close eye on the Indian trade delegation’s visit to the US ahead of the July 9 deadline. “Going forward, the market is likely to be influenced by developments on the tariff front. An India-US trade deal will be positive and if it does not happen the market is likely to be impacted,” Vijayakumar warned.
The commodities sector showed mixed signals. “Gold and silver prices remained rangebound and closed mixed ahead of key U.S. non-farm payroll data,” said Rahul Kalantri, VP Commodities at Mehta Equities. Gold found support from a weaker dollar, while crude oil began the week lower as “the ceasefire between Israel and Iran reduced the war premium in global markets.”
Aksha Kamboj from India Bullion and Jewellers Association noted that “Gold prices appear to have stabilized at lower levels and are gradually moving higher, driven by expectations that the US Federal Reserve may implement deeper interest rate cuts in 2025 than previously forecast.”
Individual stock movements included Karnataka Bank, which fell 5.5 per cent following CEO resignation news, while Alembic Pharma surged 7 per cent on USFDA approval. ITD Cementation gained 4.2 per cent after securing a $67.4 million contract in Abu Dhabi.
Positive macroeconomic indicators provided some support, with record-high GST collections of ₹22.08 lakh crore in FY25, representing a 9.4 per cent year-on-year increase. Canada’s decision to back off on digital tax and rising Fed rate cut expectations also helped limit downside risks.
“The main market concern continues to be the poor earnings growth. There are no clear indications yet of strong recovery in earnings growth,” Vijayakumar cautioned, adding that “Auto stocks will respond to today’s auto sales numbers.”
VLA Ambala, Co-Founder of Stock Market Today, observed that “June has been an impressive month for Indian markets, with the Nifty gaining approximately 3.5 per cent.” She recommended neutral trading strategies for index derivatives, noting that “PSU banks could also remain in focus, outperforming their private sector counterparts.”
Market participants are now awaiting the US NFP data due July 3 and developments in trade negotiations, which could significantly influence market direction in the coming sessions.
