The Indian stock market began the July series on a positive note, with both benchmark indices gaining more than 0.5%, led by strong buying in realty, FMCG, and auto stocks, which offset weakness in IT and metal shares.
The Nifty 50 ended the session at 24,005, up 0.60% from the previous close, while the Sensex gained 0.52% to settle at 76,873. The broader market also reflected the positive sentiment, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices ending over 0.30% higher.
A strong June sales update from Mahindra & Mahindra lifted the broader auto pack, helping the Nifty Auto index rise 1.15%. Nifty Realty, Nifty Media, and Nifty FMCG emerged as the top-performing sectoral indices, gaining 3.58%, 2.08%, and 2.07%, respectively.
Nifty PSU Bank and Nifty Private Bank also ended the session with gains of nearly 1% each. On the other hand, Nifty IT was the worst-performing sector, declining 2%, while Nifty Metal and Nifty Chemicals fell 1% and 0.60%, respectively.
In the commodity market, crude oil prices remained elevated as peace talks between the US and Iran encountered fresh hurdles. Iran reportedly said on Tuesday that it would not meet senior US envoys who had travelled to the region following the latest escalation in hostilities.
Vinod Nair, Head of Research, Geojit Investments Limited, said, “The domestic markets entered H2CY26 on an optimistic footing as multiple headwinds began to abate, with the anticipated US-India trade agreement, easing Middle East tensions, and benign oil prices emerging as the key drivers of positive sentiment.”
The recovery was broad-based with an outperformance of large caps due to a favourable valuation and an expectation of a partial reversal of FPI sentiment after the last two years of outflows.
“While near-term sentiment remains constructive, markets are likely to stay data-dependent, with investors balancing improving domestic fundamentals against evolving global macroeconomic and geopolitical developments,” he further added.
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