Indian equity benchmarks extended their gains for a second straight session on Thursday, July 2, 2026, driven by a decline in global crude oil prices and renewed buying interest in information technology (IT) stocks. The NSE Nifty 50 index surged 169.85 points, or 0.71 percent, to close at 24,175.70, while the BSE Sensex also posted strong gains during the session.
Market Movers: IT Stocks and Oil Prices
The rally was primarily supported by a sharp drop in international crude oil prices, which eased concerns over inflation and input costs for domestic companies. Brent crude futures fell by over 2 percent during the day, providing a boost to market sentiment. Additionally, IT stocks witnessed significant buying, with major firms like Infosys, Tata Consultancy Services, and HCL Technologies contributing to the index's upward movement.
According to market analysts, the easing of crude prices reduces pressure on the government's fiscal deficit and helps control imported inflation, which is positive for the overall economy. The IT sector, which derives a substantial portion of its revenue from exports, also benefits from a stable global demand environment.
Broader Market Trends
The broader market also showed strength, with the Nifty Midcap 100 and Nifty Smallcap 100 indices rising 0.8 percent and 1.1 percent, respectively. Sectorally, the Nifty IT index gained over 1.5 percent, while the Nifty Oil & Gas index also advanced on lower crude prices. However, metal and realty stocks faced some profit booking after recent gains.
Market breadth was positive, with around 1,500 stocks advancing on the NSE against 1,200 declines. Foreign institutional investors (FIIs) turned net buyers in the cash market, purchasing equities worth ₹1,200 crore, while domestic institutional investors (DIIs) also added to their holdings.
Outlook and Expert Views
Analysts expect the rally to continue in the near term if crude prices remain subdued and global cues remain favorable. According to a note from Motilal Oswal Financial Services, the market is likely to consolidate with a positive bias, supported by strong domestic fundamentals and expectations of a normal monsoon.
However, some experts caution that volatility may persist due to geopolitical tensions and upcoming monetary policy decisions from central banks. The Reserve Bank of India's monetary policy committee is scheduled to meet later this month, and any hawkish stance could impact market sentiment.
