The benchmark indices ended higher for the third consecutive session on Friday (July 3), outperforming the broader markets as gains in information technology, realty and pharmaceutical stocks offset weakness in PSU banks and select financial shares.
The Sensex rose 262 points to close at 77,764, while the Nifty 50 gained 95 points to settle at 24,271, ending above the 24,250 mark. However, the broader market lagged, with the Nifty Midcap Index falling 118 points to 62,190, while the Nifty Bank declined 93 points to 57,939. The NSE advance-decline ratio stood at 1:1, indicating neutral market breadth.
Here are the three key factors behind Friday's market move:1. IT stocks gained after HCLTech announced a large AI deal
Information technology stocks were among the top sectoral gainers after HCLTech surged 6% following the announcement of a $1.14 billion AI-driven digital transformation deal with a European company. The stock emerged as one of the top gainers on the Nifty.
2. Realty and healthcare stocks supported benchmark indices
The Nifty Realty, IT and Pharma indices outperformed during the session. Max Health, Apollo Hospitals and Bajaj Finserv were among the leading gainers on the Nifty, helping benchmark indices remain in positive territory despite weakness elsewhere.
3. Commodity-linked stocks advanced as metal and gold prices rose
Nalco climbed nearly 5% as aluminium prices moved higher. Gold finance companies Muthoot Finance and Manappuram Finance gained up to 4% after gold prices increased.
On the downside, DMart fell 5%, while Union Bank dropped more than 6% after weak Q1 business updates. PSU Bank was the worst-performing sectoral index.
Among midcap stocks, CG Power, PB Fintech, Tube Investments and Bank of Maharashtra were the top losers. Bajaj Housing Finance rose 3% after reporting a healthy Q1 update and receiving an upgrade from JPMorgan.
From the Sensex basket, HCL Technologies Ltd, Apollo Hospitals Enterprise Ltd, Max Healthcare Institute Ltd, Dr Reddy's Laboratories Ltd, Bajaj Finserv Ltd and Sun Pharmaceutical Industries Ltd were the major gainers.
Axis Bank Ltd, State Bank of India, Mahindra & Mahindra Ltd, Larsen & Toubro Ltd, Bajaj Auto Ltd and Tech Mahindra Ltd were the biggest laggards.