Indian equity markets staged a strong recovery on July 1, 2026, after two consecutive sessions of decline, with the BSE Sensex surging 444 points to close at 64,382. The broader Nifty also gained 132 points to end at 19,124.
Key gainers and losers
From the Sensex pack, ITC emerged as the top gainer, rising over 3%, followed by Asian Paints, Hindustan Unilever, Adani Ports, Mahindra & Mahindra, and State Bank of India, each advancing between 1.5% and 2.5%. The only laggards were Tech Mahindra and Tata Steel, which slipped marginally.
Market breadth and sectoral performance
Market breadth was positive, with 1,982 stocks advancing against 1,420 declining on the BSE. Sectorally, all major indices ended in the green, led by the FMCG index (up 1.8%), bankex (up 1.2%), and auto (up 1.1%). The realty and metal indices also gained over 0.5% each.
Global cues and domestic triggers
According to analysts, the rebound was driven by buying in heavyweight stocks after the recent correction, coupled with positive global cues. Asian markets traded higher on optimism over China's economic stimulus measures, while US futures also pointed to a strong open.
Domestically, foreign portfolio investors (FPIs) turned net buyers after a week of selling, infusing ₹1,200 crore into equities on June 30. This, along with short covering ahead of the monthly derivatives expiry, provided further support.
Outlook
Market participants now await the Reserve Bank of India's monetary policy decision due later this week. A status quo on rates is widely expected, but commentary on inflation and growth will be closely watched. The near-term trend remains positive as long as the Nifty holds above 19,000, according to technical analysts.
