Stock market benchmark indices Sensex and Nifty ended nearly one per cent higher on Thursday (July 2, 2026) amid softening crude oil prices, following positive developments on the geopolitical front and buying in blue-chip IT stocks.
The 30-share BSE Sensex jumped 579.48 points, or 0.75%, to end at 77,502.12. During the day, it surged 656.29 points, or 0.85%, to 77,578.93.
The 50-share NSE Nifty rallied 169.85 points, or 0.71%, to settle at 24,175.70.
From the Sensex pack, Infosys jumped 5.64%, followed by Tech Mahindra (4.32%), Tata Consultancy Services (4.28%) and HCL Tech (4.12%). Bajaj Finserv, Adani Ports, Titan and ICICI Bank were also among the major gainers.
Larsen & Toubro, Maruti Suzuki India, Axis Bank and Reliance Industries were among the laggards.
Brent crude, the global oil benchmark, dropped 1.45% to $70.53 per barrel.
India and Japan on Thursday (July 2, 2026) unveiled a raft of landmark initiatives, including an economic partnership framework and defence pact to co-develop military hardware, following summit talks between Prime Minister Narendra Modi and his Japanese counterpart Sanae Takaichi.
The major outcomes from the meeting included a declaration on economic security, a joint statement for cooperation in the field of artificial intelligence and a document to bolster engagement in the energy supply chain.
“Indian equities extended their winning streak despite pressure in global markets, where technology stocks dragged overseas indices lower. Easing energy prices and fresh India-Japan agreements in strategic areas such as AI, defence technology and energy security helped sustain domestic market optimism,” R. Ponmudi, CEO of Enrich Money, an online trading and wealth tech firm, said.
According to Ajit Mishra, SVP-Research, Religare Broking Limited, the rebound in IT shares supported the rally, but profit booking in the banking and select heavyweight stocks affected the gains.
“The rebound in the IT pack further strengthened sentiment after the sector witnessed sharp selling in recent sessions. However, profit booking in the banking pack and select heavyweight stocks from other sectors capped the pace of the rally,” Mishra said.
The global tech sell-off intensified as chip stocks slumped across Asia, with Korean stocks tumbling 8% as AI jitters triggered a sharp correction, reviving concerns that the blistering rally in artificial intelligence shares this year may have gone too far, too fast, he added.
Meanwhile, passenger vehicle sales in the country are estimated to have grown nearly 25% in June to about 4 lakh units, led by Maruti Suzuki, Tata Motors PV and Mahindra & Mahindra.
Among auto stocks, TVS Motor jumped 3.78%, Tata Motors climbed 2%, Ashok Leyland advanced 1.51% and M&M went up by 1.39% on the BSE.
In Asian markets, South Korea’s Kospi tumbled 7.89%, Japan’s Nikkei 225 index declined 2.47% and Shanghai’s SSE Composite index dropped 2.03%, while Hong Kong’s Hang Seng index ended 0.76% higher.
Markets in Europe were trading in positive territory. U.S. markets ended lower on Wednesday (July 1, 2026).
“Indian markets ended higher as easing tensions around the Strait of Hormuz pushed crude prices lower, while dovish remarks from the Fed Chair reinforced expectations of moderating inflation and a supportive global rate environment,” Vinod Nair, Head of Research, Geojit Investments Ltd, said.
Sectorally, IT surged 4.37%, Focused IT (4.29%), Consumer Durables (1.45%), Realty (1.43%), Auto (1.33%), Consumer Discretionary (1.11%) and Commodities (1.06%).
Industrials, Telecommunication, Capital Goods and Power were the laggards.
The BSE MidCap Select index jumped 0.94% and the SmallCap Select index climbed 0.68%.
A total of 2,536 stocks advanced, while 1,740 declined and 182 remained unchanged on the BSE.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,140.50 crore on Wednesday (July 1, 2026), according to exchange data.
On Wednesday (July 1, 2026), the Sensex climbed 443.97 points, or 0.58%, to settle at 76,922.64. The Nifty rallied 140.10 points, or 0.59%, to end at 24,005.85.
Published – July 02, 2026 05:52 pm IST
