Stock Market Highlights Today: Nifty gained 170 points, is IT back in favour again 3rd July 2026

Benchmark indices extended gains on Friday, with the Sensex closing at 77,502.12 up 579 points and the Nifty 50 at 24,175.70 up 170 points, driven mainly by a sharp rebound in IT stocks and easing concerns over aggressive US Federal Reserve rate hikes after softer US jobs data.

Indian equities tracked positive global cues and support from lower crude prices, even as foreign investors remained net sellers and broader midcap and smallcap indices underperformed the large-cap benchmarks.

Market Overview

Index	3 July 2026 Close	Move & % Change	Comments
Sensex	77,502.12	+579 pts (+0.75%)	Second straight gain, IT and metals lifted index.
Nifty 50	24,175.70	+169.85 pts (+0.71%)	Held above 24,100, financials mixed, IT strong.
Nifty IT	approx. 27,700	approx. +3%	Extended rebound after prior 4.64% rally.
Nifty Midcap 100	approx. level	up 0.2%	Underperformed benchmarks despite positive breadth.
Nifty Smallcap 100	approx. level	up 0.5%	Gains modest versus large caps.
India VIX	12.13	-1% approx.	Volatility eased, supporting risk appetite.

Note: figures are approximate; final exchange data not available at time of publication.

• Early trade: Sensex hit 78,048.01, Nifty 24,346.90 before trimming gains.
• Another print showed Sensex at 78,157, Nifty at 24,378 in intraday trade.
• BSE market capitalisation rose by about ₹2.4 lakh crore in the session.
• Advance-decline on NSE: 1,832 advances, 607 declines, 91 unchanged.

Key Movers

Top Gainers

Stock	Sector	Notable Factor
HCL Tech	IT	Led Nifty IT, up about 4.5% on global tech strength.
Tech Mahindra	IT	Rose 2–3% as rate hike fears eased.
Infosys	IT	Gained over 1%, tracking global tech peers.
TCS	IT	Advanced more than 1%, supported index rally.
Bajaj Finserv	Financials	Among major Sensex winners, aided by risk-on mood.
Tata Steel	Metals	Rose over 1%, helped by sectoral buying.
Bharat Electronics	Capital goods	Featured among key gainers in Sensex pack.

• All Nifty IT constituents traded in the green.
• Persistent Systems, Mphasis, Wipro, Coforge rose between 2% and 3%.
• LTIMindtree, L&T Technology Services also added over 1%.

Top Losers

Stock	Sector	Notable Factor
Mahindra & Mahindra	Auto	Fell nearly 1%, bucked benchmark trend.
State Bank of India	PSU Bank	Traded weak despite overall positive sentiment.
NTPC	Power	Listed among laggards in the Sensex pack.
InterGlobe Aviation	Aviation	Underperformed amid sector-specific concerns.

• Nifty Auto index slipped, reflecting pressure in select auto names.
• Nifty PSU Bank index traded in the red despite tapering FII outflows.

Sectoral Action

Sector/Index	Direction (approx.)	Key Drivers
Nifty IT	up 3%	Relief on US rate hike fears, global tech gains, low valuations.
Nifty Metal	up 1.5%	Supported by risk-on sentiment and easing geopolitical risks.
Nifty Auto	down 0.5% approx.	Stock-specific weakness, including M&M decline.
Nifty PSU Bank	down 0.5% approx.	Profit-taking after prior gains, FII selling backdrop.

• IT emerged as the largest contributor to index gains.
• Broader midcap and smallcap indices lagged despite positive earnings backdrop.
• Smallcaps have outperformed year-to-date, but Friday’s move favoured large caps.

Technical Outlook

• Nifty 50 held above 24,100, tested intraday high near 24,378.
• Sensex traded above 78,000 intraday, then settled below that mark.
• Nifty IT bounced from recent 52-week lows, now near 27,700.
• Recent four-session IT decline of 6.5% has partly reversed.
• India VIX near 12 signals relatively low implied volatility.

Flows, Rupee and Key Statistics

Statistic	Value/Change	Context
FII/FPI flows (Thu)	₹311.82 crore net selling	Outflows have tapered versus earlier war-related selling.
FPI YTD selling	$29.46 billion	Record outflows, yet indices near highs.
DII flows (Thu)	Net buying, 8th straight day	Domestic institutions offset foreign selling.
Rupee opening	95.21, up 18 paise	Firmer rupee on weaker dollar and softer US data.
Brent crude	$72.25, up 0.63%	Near pre-war levels, supportive for India’s macros.

Note: figures are approximate; final exchange data not available at time of publication.

• GIFT Nifty futures rose 150 points to 24,414, signalling a strong open.
• Nifty and Sensex gained about 1.3% over the last two sessions.

Global Cues

Market/Asset	Movement	Notes
Dow Jones Industrial Average	+1.14%	Hit record close, fourth straight week of gains.
Nasdaq Composite	-0.80%	Tech-heavy index slipped despite softer jobs data.
S&P 500	Flat	Mixed reaction to labour data and rate outlook.
Kospi (South Korea)	+2.5% approx.	Strong gains, aided sentiment in Asian equities.
Nikkei 225 (Japan)	+0.74%	Traded higher, though on track for marginal weekly decline.
Hang Seng (Hong Kong)	+1% approx.	Joined regional rally, supporting risk assets.
Shanghai Composite (China)	+1% approx.	Higher as Fed hike odds eased.
Brent crude	+0.63% at $72.25	Near pre-war levels, tanker traffic via Hormuz improved.

Note: figures are approximate; final exchange data not available at time of publication.

• US jobs growth slowed sharply in June, prior payrolls revised lower.
• Traders cut odds of a September Fed rate hike after the data.
• Dollar index slipped to around 100.77, aiding emerging market currencies.

Macro and Geopolitics

• Middle East tensions eased, with peace efforts between the US and Iran continuing.
• Tanker traffic through the Strait of Hormuz increased, reducing supply disruption fears.
• Crude’s retreat to pre-war levels is cited as a key macro support.
• “Continued progress in the U.S–Iran negotiations has strengthened hopes of a diplomatic resolution, easing concerns over energy supply disruptions and providing support to risk assets”

– Ponmudi R, CEO, Enrich Money.

• “The crash in crude to pre-war level is the strongest macro support to the economy and the market”

– V.K. Vijayakumar, Chief Investment Strategist, Geojit Investments.

IT Sector Lens

• Nifty IT down 30% in H1CY26, worst-performing sectoral index year-to-date.
• Index has fallen 29% over one year, 28% over six months, 10% over three months.
• Recent correction has pushed valuations closer to long-term averages.
• Analysts see improved risk-reward but expect soft demand commentary in Q1FY27.
• Motilal Oswal expects tepid quarter-on-quarter growth in IT through Q2FY27.
• “We expect demand commentary to stay soft in Q1FY27, as macro, AI and geopolitical overhangs continue to weigh on discretionary spending and decision-making cycles”

– Motilal Oswal Financial Services.

Smallcaps Context

• Nifty Smallcap 250 up 10% in 2026, versus Nifty down 6% over same period.
• March smallcap correction of 8% followed Iran conflict and surging crude.
• HFCL has gained 212% year-to-date, Aditya Infotech 139.7%, Acutaas Chemicals 109.25%.
• Syrma SGS Technology up 93.9%, several others between 73% and 92%.
• Motilal Oswal smallcap coverage (168 firms) delivered 19% earnings growth, with 68% meeting or beating estimates.

FAQs

Q: Why did IT stocks lead the rally today?

• Softer US jobs data reduced expectations of near-term Fed rate hikes, easing concerns on global tech spending.
• Valuations in Nifty IT corrected after steep declines, attracting buying interest.
• Strong gains in global technology shares supported domestic IT sentiment.

Q: How are foreign and domestic investors positioned in Indian equities?

• FPIs sold about ₹311.82 crore on Thursday and have offloaded $29.46 billion year-to-date.
• DIIs remained net buyers for eight straight sessions, helping offset foreign selling.
• Steady SIP inflows have supported midcap and smallcap segments despite volatility.

Q: What role did crude oil and geopolitics play in today’s move?

• Brent crude near $72 and pre-war levels eased concerns on inflation and deficits.
• Improved tanker traffic through Hormuz reduced supply risk perceptions.
• Ongoing US–Iran diplomatic efforts lowered geopolitical risk premiums, aiding risk assets.

Frequently Asked Questions

Why did IT stocks lead the rally today?

Softer US jobs data eased Fed hike fears, global tech shares rose, and Nifty IT valuations had corrected, drawing buying interest.

How are foreign and domestic investors positioned in Indian equities?

FPIs remain net sellers with record year-to-date outflows, while DIIs and SIP inflows continue to provide steady domestic support.

What role did crude oil and geopolitics play in today’s move?

Brent crude near pre-war levels and easing US–Iran tensions reduced macro and supply risks, supporting Indian equities.