Indian equities faced a decline for the second consecutive session, with analysts anticipating recovery if key support levels hold.
New Delhi, India Jul 1, 2026 ALN: The Indian stock market closed in the red for the second consecutive session on Tuesday, with the Sensex and Nifty both falling around 0.3% on the latter’s monthly expiry day. The Sensex dropped nearly 250 points to end the session at 76,479, while the Nifty 50 declined over 80 points to close at 23,866. This decline came as the India VIX, which measures market volatility, fell slightly to 13.48.
Analysts have noted that the domestic market remains in a consolidation phase, trading within a narrow range and exhibiting a mixed trend. Vinod Nair, Head of Research at Geojit Investments, stated that while geopolitical concerns have eased, the fragile nature of the US–Iran peace deal continues to weigh on sentiment, preventing any meaningful directional move.
“Sectoral performance was mixed but tilted to the downside, with IT emerging as the primary drag. Investors are closely monitoring the upcoming US employment data and commentary from the new Fed Chair for cues on the interest rate trajectory, as inflation remains above target while activity continues to expand at a healthy pace,” Nair added.
On the domestic front, the current monsoon trend, indicating a potential worst deficit in a decade, raises concerns about agricultural output and allied sectors. This further impacts sentiment amid expectations of weak Q1FY27 earnings. However, stability in crude oil prices and the Indian rupee, along with a recent moderation in foreign institutional investor (FII) outflows, are expected to provide near-term support to the market, with large caps likely to outperform.
Meanwhile, Wall Street's main indexes were on course to close June with their strongest quarterly gains in years, highlighting the resilience of equities despite geopolitical challenges. The S&P 500 and the Nasdaq Composite indexes were set for their best quarter in six years, while the blue-chip Dow was on track for its biggest quarterly gain since 2022.
Some analysts are pinning their hopes on the upcoming earnings season to boost stocks, especially after last week's punishing selloff in semiconductors and tech shares.
In Europe, the STOXX 600 index, which does not have nearly as many AI beneficiaries as many Asian or U.S. indexes, was up 1.1%, heading for a quarterly gain of 10%, having risen every month since March.
The Nifty oscillated within the 23,850–24,050 range during the session, as the NSE F&O monthly expiry took place. Rupak De, Senior Technical Analyst at LKP Securities, noted that sentiment remained slightly negative, although the index found support at the 50 EMA on the daily timeframe. However, the daily RSI has entered a bearish crossover, indicating weakening momentum.
“Overall, the setup appears mixed, with significant Call and Put writing at the 24,000 strike, suggesting that this level is likely to act as a crucial pivot. Going forward, the new series may begin with the Nifty hovering around the 24,000 mark. Any meaningful move away from this level could provide clues about the index's next directional trend,” De added.
In terms of turnover, HDFC Bank (Rs 3,656 crore), ICICI Bank (Rs 2,535 crore), Infosys (Rs 2,430 crore), Maruti Suzuki (Rs 2,114 crore), Reliance Industries (Rs 2,033 crore), Ola Electric Mobility (Rs 1,981 crore), and Eicher Motors (Rs 1,756 crore) were among the most active stocks on the NSE.
In volume terms, Vodafone Idea led with 48.65 crore traded shares, followed by Ola Electric Mobility (45.38 crore), Yes Bank (16.03 crore), and others.
Stocks that witnessed strong buying interest included Ola Electric Mobility, Cochin Shipyard, Transformers and Rectifiers (India), Balrampur Chini, Ather Energy, Maruti Suzuki, and Gland Pharma. Conversely, stocks that faced significant selling pressure were Schneider, KPIT Tech, Eicher Motors, WABCO India, Tata Technologies, R R Kabel, and Birlasoft.
Among the stocks that hit their 52-week highs on the NSE were Ather Energy, Gland Pharma, Capri Global, ITD Cementation, Minda Corp., Ipca Labs, and Nykaa. Meanwhile, stocks that reached their 52-week lows included Birlasoft, LTIMindtree, Tata Elxsi, Infosys, TCS, Wipro, and HCL Tech.
Out of the 3,411 stocks that traded on the NSE on June 30, 1,919 stocks witnessed advances, 1,383 saw declines, while 109 stocks remained unchanged. This indicates a sentiment meter that currently favors bulls.
In conclusion, while the Indian stock market faces challenges, analysts remain cautiously optimistic about potential recovery if key support levels hold. Investors are advised to keep a close watch on upcoming indicators and earnings reports that could influence market direction.
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