Last Updated on July 1, 2026 5:56 pm by INDIAN AWAAZ
Our Business Correspondent
Indian equity benchmarks snapped a two-session losing streak on Wednesday as broad-based buying in automobile, financial and FMCG stocks helped investors shrug off weakness in the information technology pack. The recovery was aided by positive global cues, value buying in frontline counters and encouraging domestic macroeconomic data, including robust GST collections, although caution persisted amid global geopolitical tensions and uncertainty over the US interest-rate trajectory.
The BSE Sensex advanced 443.97 points, or 0.58 per cent, to close at 76,922.64, while the Nifty 50 gained 140.10 points, or 0.59 per cent, to settle at 24,005.85, reclaiming the psychologically significant 24,000 mark. The rebound came after the Sensex and Nifty had collectively lost nearly 0.8 per cent over the previous two trading sessions.
Auto, Financials Lift Benchmarks
Buying interest remained concentrated in automobiles, banking, financial services and consumer stocks, offsetting persistent selling pressure in technology counters.
Among the biggest contributors to the Nifty’s gains were Eternal, which surged 5.82 per cent, followed by State Bank of India, up 1.62 per cent, and Reliance Industries, which added 0.97 per cent.
However, the broader market continued to trail benchmark indices, indicating selective buying rather than a broad market rally. The BSE MidCap Index rose 0.29 per cent, while the SmallCap Index edged up 0.19 per cent.
Market breadth nevertheless remained positive, with 2,222 stocks advancing against 2,059 declines on the BSE, while 179 shares remained unchanged.
Investor nervousness eased marginally, reflected in the India VIX, the market’s volatility gauge, which declined 2.62 per cent to 13.24.
Strong GST Numbers Offset Softer Manufacturing Data
Domestic macroeconomic indicators presented a mixed picture.
India’s manufacturing sector continued to expand in June, although at a slower pace. The HSBC Manufacturing Purchasing Managers’ Index (PMI) moderated to 54.2 from 55.0 in May, marking the second-slowest pace of expansion since mid-2022. Despite the slowdown, the reading remained comfortably above the 50-mark that separates expansion from contraction, indicating sustained growth in manufacturing activity.
Providing a stronger boost to investor confidence, gross GST collections rose 13.9 per cent year-on-year to ₹1.95 lakh crore in June, compared with ₹1.71 lakh crore in the corresponding month last year. Net GST collections increased 11.2 per cent to ₹1.62 lakh crore, despite higher refund outgo, while GST revenues from imports recorded a sharp 34.6 per cent annual growth, highlighting resilient domestic consumption and healthy import demand.
Global Factors Keep Investors Cautious
While domestic sentiment improved, investors continued to monitor global developments closely.
Asian markets ended mixed as traders assessed uncertainty surrounding US-Iran diplomatic negotiations, rising US Treasury yields and upcoming US macroeconomic data. Optimism over the approaching earnings season, however, helped cap losses.
European markets traded lower as investors awaited comments from leading central bankers, including US Federal Reserve Chair Kevin Warsh, for fresh guidance on the outlook for interest rates. Market sentiment remained cautious despite eurozone inflation easing more than expected in June.
Geopolitical tensions also remained elevated after Iran stated that it would not hold talks with senior US officials who had travelled to the region, with negotiations over reopening the Strait of Hormuz remaining deadlocked.
Meanwhile, the Japanese yen weakened to a fresh 40-year low against the US dollar, fuelling speculation of possible intervention by Japanese authorities.
US Treasury yields strengthened ahead of Thursday’s closely watched US employment report, reducing expectations of an early Federal Reserve rate cut.
US stock futures pointed to a subdued opening later in the day after Wall Street had closed at fresh record highs overnight, led by semiconductor stocks.
Rupee Weakens; Gold and Oil Slip
In the currency market, the rupee weakened against the US dollar, with the partially convertible currency quoted at 95.2350, compared with the previous close of 94.5600.
The yield on the benchmark 10-year government bond edged higher to 6.757 per cent.
Commodity markets witnessed mild declines, with MCX Gold futures for August settlement falling 0.51 per cent to ₹1,41,800 per 10 grams. Internationally, Brent crude eased 0.80 per cent to $72.37 per barrel, while the US Dollar Index strengthened to 101.38.
KPIT Plunges on Weak Revenue Outlook
Technology stocks remained under pressure after KPIT Technologies plunged 16.46 per cent, emerging as the biggest drag on the IT sector.
The company warned that second-quarter FY27 revenue is expected to remain broadly in line with the first quarter, signalling continued weakness in client demand. Management attributed the slowdown to multiple customer-specific factors while maintaining that long-term growth opportunities remain intact.
Auto Sales Drive Sectoral Gains
Automobile stocks remained in focus following monthly sales updates.
Ashok Leyland climbed 2.76 per cent after reporting a 25.18 per cent increase in June vehicle sales to 19,194 units.
Ola Electric Mobility gained 2.65 per cent after VAHAN data showed registrations nearly doubled sequentially to 43,719 vehicles during the first quarter of FY26.
Escorts Kubota edged up 0.18 per cent after reporting 19.1 per cent growth in June tractor sales.
Steel Strips Wheels rallied 7.16 per cent after reporting a 36.84 per cent jump in June turnover.
VST Tillers Tractors advanced 2.85 per cent following steady monthly sales growth, while SML Mahindra declined 3.37 per cent despite reporting higher vehicle sales.
Stock-Specific Action
Several individual stocks witnessed sharp movements on company-specific developments.
Paisalo Digital soared 19.12 per cent after promoter shareholding increased significantly following open-market acquisitions.
RITES surged 12.86 per cent after securing a ₹175.41-crore project management consultancy contract from Babasaheb Bhimrao Ambedkar University.
VA Tech WABAG gained 3.58 per cent after winning a major international water infrastructure contract in Vienna.
Transformers & Rectifiers (India) rose 1.69 per cent after receiving an ultra-mega transformer manufacturing order from Power Grid Corporation of India.
EPACK Durable advanced 2.41 per cent after receiving incentive approval under Andhra Pradesh’s electronics manufacturing policy.
Zaggle Prepaid Ocean Services gained 1.25 per cent after signing a five-year agreement with Hindustan Petroleum Corporation Ltd. for its fleet management programme.
On the downside, ZF Commercial Vehicle Control Systems India fell 3.24 per cent following the resignation of its Chief Financial Officer.
GNG Electronics hit the upper circuit after announcing a nationwide distribution partnership with Redington.
IPO Market Remains Active
Primary market activity continued at a healthy pace. Knack Packaging’s IPO received subscriptions of 2.59 times on the opening day, attracting bids for 4.92 crore shares against an offer size of 1.89 crore shares.
Meanwhile, Aastha Spintex witnessed robust investor interest, with the issue subscribed 4.64 times by the close of bidding.
Mixed Debut for New Listings
Among new listings, Waterways Leisure Tourism made a disappointing market debut, listing at a discount of 14.6 per cent to its issue price before extending losses during the session. In contrast, Advit Jewels delivered a strong listing performance, debuting at a 35.5 per cent premium over its issue price and sustaining healthy investor interest throughout the day.