Equities Extend Weekly Rally on IT Strength; Bond Yields Steady

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

By Dehuti Jani

July 3, 2026 at 11:49 AM IST

Indian equity benchmarks ended higher on Friday, extending their winning streak to a fourth consecutive week as easing oil prices and a softer-than-expected US jobs report reduced concerns over further Federal Reserve rate hikes, boosting information technology stocks. The Nifty50 gained 95.15 points or 0.39% to close at 24,270.85, while the BSE Sensex rose 262.79 points or 0.34% to 77,763.91. The benchmarks advanced about 0.9% during the week, extending their four-week gains to 3.9% and 4.7%, respectively.

Sentiment remained supported by Brent Crude trading near $72 per barrel, more than 40% below its April peak, easing concerns over India's inflation and current account outlook. Softer-than-expected US employment data also eased expectations of additional Federal Reserve rate hikes.

Technology shares rebounded, with the Nifty IT index rising 1.8% on Friday to snap a five-week losing streak, helped by improving expectations for US technology spending. Realty, pharma and healthcare stocks also outperformed. Among Nifty50 constituents, HCL Technologies, Max Healthcare Institute and Apollo Hospitals Enterprise were the top gainers. In the broader market, the Nifty MidCap index slipped 0.19%, while the Nifty SmallCap index edged up 0.04%.

The rupee ended marginally higher on Friday but posted a weekly decline, with merchant-related dollar demand, arbitrage flows and non-deliverable forward maturities outweighing support from a weaker US dollar. The currency ended the week at 95.21 per US dollar.

Meanwhile, Indian government bonds were largely unchanged in thin trade after the Reserve Bank of India's government securities auction met market expectations without providing fresh directional cues. The benchmark 6.94% GS 2036 yield closed around 6.7108%, little changed from the previous session.

Top Movers of the Day

HCL Technologies closed at ₹1,140.00, up 5.7%, after announcing a $1.14-billion AI-led digital transformation deal with a Europe-based Fortune Global 50 company, widely reported to be Mercedes-Benz.

Max Healthcare Institute ended around ₹1,150.10, up 2%, as investors accumulated healthcare stocks on strong earnings prospects and defensive appeal.

Apollo Hospitals Enterprise closed near ₹8,854.00, up 2%, supported by continued buying in healthcare and hospital stocks.

Dr. Reddy's Laboratories settled around ₹1,370.90, up 2%, as investors rotated into large-cap pharmaceutical stocks.

Suven Life Sciences jumped to ₹327.40, up 9.88%, on heavy volumes amid optimism over its specialty drug pipeline.

Zensar Technologies closed near ₹514.20, up 10%, extending its rally as buying continued in mid-cap technology stocks.

Sumitomo Chemical India ended around ₹501.00, up 13.5%, after its parent announced a joint venture with Samsung Electro-Mechanics for advanced semiconductor glass substrates.

National Aluminium Company finished at ₹347.80, up 4.7%, as easing US rate-hike concerns and a weaker dollar supported metal stocks.

Mahindra & Mahindra Financial Services closed at ₹335.15, up 5.4%, on strength across NBFC and auto finance stocks.

PC Jeweller settled near ₹10.42, up 4.06%, after reporting about 21% year-on-year revenue growth for the June quarter and guiding to become debt-free this quarter.

PB Fintech fell to ₹1,586.00, down 5.7%, after Temasek's affiliate reportedly sold a 2.3-2.4% stake through a block deal.

Avenue Supermarts closed at ₹3,990.00, down 4.7%, as investors booked profits after its June-quarter business update despite reporting 15.1% year-on-year revenue growth.

Futures & Options
The Nifty July 2026 futures contract settled at 24,351.10, a premium of 80.25 points over the spot Nifty 50 close of 24,270.85, indicating a positive undertone in the derivatives market. In the cash market, the Nifty 50 gained 95.15 points or 0.39%, extending its rally for a fourth consecutive session.

Meanwhile, India VIX declined 3.98% to 11.80, reflecting easing near-term volatility expectations. Among stock futures, HCL Technologies, Infosys and PB Fintech were the most actively traded contracts in the NSE F&O segment. The July 2026 derivatives series will expire on 28 July 2026.

Bonds
India’s government bond benchmark yields largely unchanged on Friday as the market absorbed the week's benchmark gilt auction, while continued foreign inflows helped keep sentiment supportive. The benchmark 6.94% GS 2036 yield ended at 6.7108%, compared with 6.7180% on Thursday.

The government's 340-billion-rupee bond auction was largely in line with market expectations, with the benchmark 6.94% GS 2036 bond cut off at 101.50 rupees, implying a yield of 6.7275%. Dealers said the auction failed to trigger fresh buying as pricing broadly matched market expectations. After absorbing the new supply, longer-dated government securities faced mild selling pressure, with traders seeing limited value in extending duration following the recent rally.

Forex
Indian rupee ended at 95.21 against the US dollar on Friday, posting a weekly decline of nearly 1% and slipping past the 95-per-dollar mark for the first time in three weeks. The currency, however, closed marginally higher on the day.

Dollar demand from merchant payments, arbitrage trades and non-deliverable forward (NDF) contract maturities outweighed support from a broadly weaker U.S. dollar, limiting the rupee's gains.

Crypto
Crypto markets traded mixed to lower on Friday, with risk sentiment remaining subdued. Bitcoin traded near $61,794 on Friday, down more than 30% from levels above $93,000 at the start of the year. The cryptocurrency has also fallen sharply from its record high of around $126,000, reached in October 2025, as selling pressure and weaker risk appetite weighed on digital assets.

Ethereum traded at $1,736.80 today, reflecting a 2.26% increase over the past 24 hours.

US Stock Futures
US stock futures and equities are closed today, Friday, July 3, 2026, to observe the Independence Day holiday.

US Treasury Notes
US Treasury yields edged lower on Friday after weaker-than-expected June non-farm payrolls data reinforced expectations that the Federal Reserve is unlikely to raise interest rates in the near term. The benchmark 10-year Treasury yield traded around 4.45%, while the policy-sensitive two-year Treasury yield hovered near 4.13%. The 30-year Treasury bond yield was around 4.98%.

Investors continued to assess the implications of softer US labour market data after June non-farm payrolls rose by 57,000, well below market expectations, reducing expectations of further Federal Reserve policy tightening.

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