Equities Rise; Rupee Slides Before Fed Remarks

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 1, 2026 at 12:08 PM IST

Indian equity benchmarks ended higher on Wednesday as gains in financial, auto and consumer goods stocks outweighed weakness in information technology shares, while lower crude oil prices continued to support investor sentiment. The Nifty50 rose 140.10 points or 0.59% to close at 24,005.85, while the BSE Sensex gained 443.97 points or 0.58% to 76,922.64.

Sentiment remained supported by a further decline in Brent Crude, which fell 1% to around $72 per barrel. Oil prices have declined more than 40% from their April peak, improving India's inflation and current account outlook despite lingering uncertainty over US-Iran negotiations.

Financial stocks led the gains, with the Nifty Financial Services index rising 0.9%. Axis Bank gained 1.7% and State Bank of India rose 2.0%. Auto shares also outperformed after strong June sales, with Ashok Leyland and Mahindra & Mahindra advancing 2.8% and 2.0%, respectively.

Among Nifty50 constituents, Eternal, Adani Enterprises and Nestlé India were the top gainers. Realty, FMCG and auto stocks outperformed, while IT, metal and pharma shares lagged. The Nifty MidCap and Nifty SmallCap indices gained 0.34% and 0.36%, respectively.

The rupee weakened 0.6% to 95.2475 per US dollar, its sharpest one-day decline since June 8, as Asian currencies retreated ahead of remarks from the US Federal Reserve Chair Kevin Warsh and uncertainty surrounding US-Iran negotiations.

Meanwhile, government bonds surrendered most of their early gains as traders trimmed positions ahead of Friday's 340-billion-rupee government securities auction. The benchmark 6.94% GS 2036 yield ended at 6.7563%, little changed from 6.7501% in the previous session, while overseas buying moderated and selling emerged in the 6.68% GS 2040 paper.

Top Movers of the Day

Eternal gained 5.8% to ₹280.00 as heavy volumes and rotation into defensive FMCG names lifted the stock to the top of the Nifty gainers.

Nestlé India rose 3.8% to ₹1,453.00 after strong buying in consumer staples following expectations of steady June-quarter growth.

Asian Paints advanced 3% to ₹2,715.00 on optimism that lower crude oil prices would support margins and demand.

Adani Enterprises climbed 3.5% to ₹3,143.00 as infrastructure and diversified conglomerate stocks attracted broad-based buying.

Adani Ports & SEZ gained 2.8% to ₹1,848.20 after positive brokerage commentary on its strategic partnership with MSC.

Mahindra & Mahindra rose 2.1% to ₹3,132.00 because the company reported exceptionally strong June sales figures that significantly beat market estimates across both its automotive and tractor segments.

Kotak Mahindra Bank added 1.7% to ₹399.00 after brokerages reaffirmed positive views on its acquisition of Deutsche Bank India's retail and wealth business.

RITES surged 12.9% to ₹230.80 after securing a 175-crore-rupee project management consultancy order from Ambedkar University.

RailTel Corporation of India gained 3.2% to ₹317.90 after winning a 107-billion-rupee MPLS VPN network order from Mahanadi Coalfields.

Reliance Power jumped 9% to ₹27.06 after announcing plans to expand into AI and new-age technology businesses.

KPIT Technologies slumped 16% to ₹561.00 after warning of weaker June-quarter revenue and margin performance, triggering a broad sell-off in auto engineering and IT stocks.

Futures & Options
The Nifty July 2026 futures contract closed at 24,082, a premium of 76.15 points over the spot Nifty 50 close of 24,005.85, indicating a positive undertone in the derivatives market. In the cash market, the Nifty 50 gained 140.10 points or 0.59%, supported by strength in financial, FMCG and auto stocks.

Meanwhile, India VIX slipped 2.62% to 13.24, reflecting easing near-term volatility expectations. Among stock futures, Infosys, HDFC Bank and Maruti Suzuki India 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 ended marginally higher on Wednesday as optimism over potential Bloomberg Global Aggregate Index inclusion and improving domestic liquidity was offset by rising US Treasury yields, a weaker rupee and renewed uncertainty over US-Iran peace talks. The benchmark 6.94% GS 2036 yield closed at 6.7563%, compared with 6.7501% in the previous session.

Dealers said some traders built short positions ahead of Friday's 340-billion-rupee auction of the benchmark security, while overseas buying moderated during the session, removing a key source of support for government bonds. Selling also emerged in the 6.68% GS 2040 bond as investors turned cautious after higher-than-expected cut-off yields at the RBI's Treasury bill auction prompted a reassessment of yield levels across the curve. A weaker rupee further weighed on market sentiment.

Forex
Indian rupee fell to a near three-week low on Wednesday, tracking weakness across Asian currencies as investors turned cautious ahead of remarks from the US Federal Reserve Chair and ongoing US-Iran negotiations. The rupee weakened 0.6% to close at 95.2475 per US dollar, marking its sharpest one-day decline since June 8.

Traders said likely RBI intervention initially supported the currency, but the rupee came under pressure as dollar selling by state-run banks tapered off later in the session. Most Asian currencies also weakened between 0.1% and 0.5%, while the US dollar index firmed to around 101.4.

Higher US Treasury yields and fading optimism over a lasting US-Iran peace agreement supported the dollar and reinforced expectations that the Federal Reserve could keep interest rates elevated. Market participants also awaited comments from Fed Chair Kevin Warsh and the ADP employment report for further policy cues.

Crypto
Crypto markets remained under pressure on Wednesday as institutional outflows, macroeconomic uncertainty and regulatory developments in Europe continued to weigh on investor sentiment. Bitcoin traded in the $58,500-$59,000 range after slipping below the $59,000 mark to its lowest level in nearly two years. The world's largest cryptocurrency was down about 0.7% over the past 24 hours and has lost more than 30% since the start of the year.

Ethereum traded near $1,570, remaining under pressure after falling nearly 68% from its previous cycle peak. The weaker performance relative to Bitcoin highlighted continued caution towards the broader altcoin market amid persistent macroeconomic headwinds.

US Stock Futures
US stock futures edged lower on Wednesday as investors turned cautious after a strong first-half rally, while renewed uncertainty over US-Iran negotiations weighed on risk sentiment. Futures tied to the Dow Jones Industrial Average fell 170 points, or 0.33%, while S&P 500 futures slipped 0.29%. Nasdaq-100 futures declined 0.34%.

Market sentiment weakened after Iran ruled out direct talks with US officials, saying no meetings had been scheduled in the coming days. The diplomatic setback raised fresh concerns over the durability of the ceasefire and the outlook for stability around key global oil shipping routes.

US Treasury Notes
US Treasury yields extended their advance on Wednesday as investors priced in the possibility of higher interest rates for longer following hawkish Federal Reserve commentary and resilient economic data. The benchmark 10-year Treasury yield rose about 4 basis points to 4.465%, while the policy-sensitive 2-year Treasury yield climbed to 4.174%.

Bond prices came under pressure after Cleveland Fed President Beth Hammack indicated that interest rates may need to rise further if inflation does not ease sufficiently. Investors also positioned ahead of key US economic releases, including the ISM Manufacturing PMI and the closely watched nonfarm payrolls report, for fresh clues on the Federal Reserve's policy outlook.

Top News