Sensex, Nifty extend winning streak to 3rd day; investor wealth jumps over Rs 6.1 lakh crore

Despite intraday volatility and profit booking at higher levels, Indian benchmark equity indices extended their gains for a third straight session on Friday, supported by global cues and continued buying interest in IT stocks. The 30-share BSE Sensex pack rose 261.79 points or 0.34 per cent to close at 77,763.91, while the NSE Nifty50 pack advanced 95.15 points or 0.39 per cent to settle at 24,270.85.

The broader market ended on a mixed note as Nifty Midcap100 index shed 0.19 per cent, while Nifty Smallcap100 index edged 0.04 per cent higher.

Among the major contributors to Sensex's gains were Bharti Airtel Ltd, ICICI Bank Ltd, HDFC Bank Ltd, HCLTechnologies Ltd, Bajaj Finance Ltd, Sun Pharmaceutical Industries Ltd, Tata Consultancy Services (TCS), UltraTech Cement Ltd, Tata Steel Ltd and Infosys Ltd.

The rally boosted investor wealth. The combined market capitalisation (m-cap) of BSE-listed companies rose by around Rs 0.44 lakh crore during the session to Rs 480.24 lakh crore. Including Wednesday's (July 1) gains, investors have added approximately Rs 6.14 lakh crore in wealth over the last three trading sessions.

Vinod Nair, Head of Research at Geojit Investments, said, "Domestic markets closed the session higher, despite intermittent volatility and profit-booking, aided by supportive global cues and growing expectations of a more accommodative global rate environment following softer US labour market data. Sentiment was further lifted by positive outcomes from the India–Japan Summit and continued recovery in the IT sector."

He added, "Softening crude oil prices remain a key macro tailwind, supporting the inflation outlook, external balances, and overall economic stability. Going forward, focus shifts to Q1 FY27 earnings season and management commentary, especially amid a widening monsoon deficit. Markets are likely to stick to a 'buy-on-dips' approach, with earnings quality and global developments, including progress on the US–India FTA, remaining key monitorables."

Echoing a similar view, Ravi Singh, Chief Research Officer at Master Capital Services, said, "While the broader trend remains constructive, domestic benchmarks are witnessing profit booking at higher levels as investors await fresh domestic and global triggers. Stock-specific action continues to dominate, supported by healthy earnings expectations and sustained institutional participation."

He advised traders to maintain a stock-specific approach with disciplined risk management, while medium-term investors can continue to use market corrections as opportunities to accumulate fundamentally strong companies.

Ponmudi R, CEO of Enrich Money, noted, "Softer-than-expected U.S. labour market data reduced expectations of near-term monetary tightening by the Federal Reserve, encouraging broader risk-taking across financial markets."

He also said, "Energy markets continued to stabilise as encouraging developments in Middle East diplomacy and easing concerns over disruptions to shipping through the Strait of Hormuz helped temper fears of a prolonged energy supply shock. Crude oil prices have retreated close to their pre-conflict levels, while market volatility has eased considerably. Brent crude traded near the $68 per barrel mark in international markets, with domestic crude hovering around Rs 6,500."

Nifty outlook

Rupak De, Senior Technical Analyst at LKP Securities, said, "Nifty has registered a consolidation breakout on daily charts, indicating improving market sentiment. Going ahead, the index appears well-positioned to advance towards 24,500 and potentially higher. On the downside, immediate support is placed at 24,200, followed by the stronger support zone around 24,000."