The Indian equity benchmarks extended their winning streak to the fourth straight session on Monday, July 6, 2026, with the BSE Sensex and NSE Nifty closing higher, driven primarily by a sharp rally in HDFC Bank. The gains came despite mixed signals from global markets, as investors weighed domestic economic data and corporate earnings prospects.
HDFC Bank Leads the Rally
HDFC Bank emerged as the top gainer among the Sensex components, surging 3.59% to close at ₹1,678.90. The bank's strong performance was attributed to expectations of robust quarterly earnings and improved asset quality. According to market analysts, the stock has been on an upward trend over the past few sessions, contributing significantly to the overall market momentum.
Other major contributors to the Sensex gains included Reliance Industries, which rose 1.2%, and Infosys, which added 0.8%. On the other hand, laggards included Tata Consultancy Services (TCS), which slipped 0.5%, and Maruti Suzuki, which declined 0.3%.
Market Performance and Key Levels
The 30-share BSE Sensex closed at 82,126.45, up 382.45 points or 0.47%, while the broader NSE Nifty advanced 108.20 points or 0.44% to settle at 24,865.20. The Nifty Bank index also gained 1.2%, led by HDFC Bank and ICICI Bank. The broader market indices, including the BSE Midcap and Smallcap indices, underperformed the benchmarks, rising 0.2% and 0.1%, respectively.
Market breadth was slightly positive, with 1,655 stocks advancing on the BSE against 1,422 declines, while 177 remained unchanged. The total turnover on the BSE was approximately ₹5,200 crore, lower than the previous session's ₹5,800 crore.
Global Cues and Domestic Factors
Global markets presented a mixed picture, with Asian peers closing mostly lower on concerns over the US Federal Reserve's monetary policy stance. Japan's Nikkei fell 0.8%, while China's Shanghai Composite declined 0.3%. However, European markets opened higher, providing some support to Indian equities.
On the domestic front, positive macroeconomic data, including a pickup in industrial production and stable inflation, boosted investor sentiment. The government's recent measures to boost infrastructure spending also provided a tailwind. According to a note by Motilal Oswal Financial Services, the market is likely to remain range-bound in the near term, with a positive bias, supported by strong corporate earnings and domestic flows.
Sectoral Trends
Among sectoral indices, the Nifty Bank, Financial Services, and IT indices were the top performers, gaining 1.2%, 0.9%, and 0.7%, respectively. The Nifty Auto index slipped 0.1%, while the Nifty Pharma index declined 0.2%. The Nifty Metal index was flat.
Foreign institutional investors (FIIs) were net buyers in the cash market on Friday, purchasing equities worth ₹1,200 crore, while domestic institutional investors (DIIs) bought shares worth ₹800 crore. Provisional data suggests continued buying by FIIs in Monday's session.
Outlook for the Week
Market participants will closely monitor the upcoming quarterly earnings season, with major companies like Reliance Industries, TCS, and HDFC Bank set to announce their results later this month. Additionally, global cues, including US inflation data and the Federal Reserve's policy meeting minutes, will influence market direction.
According to Vinod Nair, Head of Research at Geojit Financial Services, the market has priced in the positive domestic factors, and any negative surprise from global events could lead to a correction. He added that the Nifty has strong support at 24,500 levels, while resistance is seen at 25,000.
