Indian equity benchmarks extended their winning streak to a fourth consecutive session on Monday, with the BSE Sensex advancing 521.16 points, or 0.67%, to settle at 78,285.07, while the NSE Nifty50 closed 159.50 points, or 0.66%, higher at 24,430.35. According to The Financial Express, BSE Sensex regained the 78,000 level for the first time since April 22, 2026, marking a significant milestone in the current rally. The rally during the day was led by stocks like HDFC Bank, Mahindra & Mahindra and Bharat Electronics, while Kotak Mahindra Bank, TCS and Bajaj Finserv emerged as the biggest laggards. Investor wealth rose by ₹2.06 lakh crore as a result of the strong market performance. During the day, the Sensex surged 634.15 points, or 0.81%, to 78,398.06, demonstrating strong intraday momentum. In four trading days, the BSE benchmark has jumped 1,806.4 points, or 2.36%, and the Nifty surged 564.6 points, or 2.36%. The rise in mid and small cap stocks was comparatively lower as the indices closed 226 points and 110 points above their previous close, rising by 0.47% and 0.20%, respectively. The less broad-based nature of the rally was also indicated by a negative market breadth with 2,055 stocks advancing against 2,286 stocks in red, and the advance decline ratio of 0.90 was the lowest of the last four trading sessions.
Buying interest in leading banking counters helped keep the benchmarks in positive territory throughout the session. Among the top gainers on the Sensex, HDFC Bank emerged as the top performer, climbing 3.59%, the most among the 30-firms, followed by Mahindra, Bharat Electronics, Reliance Industries, ICICI Bank, and Maruti. According to The Financial Express, the rally during the day was led by stocks like HDFC Bank, Mahindra & Mahindra and Bharat Electronics while Kotak Mahindra Bank, TCS and Bajaj Finserv emerged as the biggest laggards. According to The Hindu, from the Sensex pack, HDFC Bank climbed 3.59%, the most among the 30-firms, while Mahindra, Bharat Electronics, Reliance Industries, ICICI Bank, and Maruti were also among the winners. According to Zee News, among the Nifty constituents, HDFC Bank, Hindalco Industries and Oil and Natural Gas Corporation (ONGC) emerged as the top gainers, helping lift the benchmark indices. According to Business Standard, strong participation in these heavyweight counters underpinned the broader market rally. The gains reflected optimism in domestic cyclical sectors, with real estate and automobile companies attracting fresh buying interest during the session. Healthcare gained 3.1%, while consumer durables and consumer discretionary stocks advanced about 2% each. However, the gains were not broad-based as capital goods stocks declined 2.7%, while the power index fell 2.6%. Sectors such as oil and gas and telecommunications slipped 0.4% and 0.2%, respectively. Tanvi Kanchan, associate director at Anand Rathi Share and Stock Brokers, noted that gains in realty, healthcare and consumer stocks reflected easing geopolitical concerns, cooling crude prices and improving domestic demand expectations.
Sectoral performance remained largely positive, led by Nifty Realty, Nifty Auto and Nifty Oil & Gas, as investors accumulated stocks across these segments. According to Zee News, the Nifty Realty index emerged as the top performer, closing at a six-month high, with the Nifty Auto index climbing to its highest level in a month. According to Business Standard, the Nifty Realty index emerged as the top performer, rising 1.67% to 886.30, with the index gaining 8.04% over the past four consecutive trading sessions. Lodha Developers surged 3.25%, Oberoi Realty gained 2.27%, Phoenix Mills rose 1.92%, DLF added 1.79%, Aditya Birla Real Estate increased 1.66%, Anant Raj advanced 1.46%, Godrej Properties jumped 1.34%, Brigade Enterprises rose 0.83%, and Sobha gained 0.66%. Realty stocks led the market rally, with the BSE Realty index surging 7.8% during the week. The gains reflected optimism in domestic cyclical sectors, with real estate and automobile companies attracting fresh buying interest during the session. Rajesh Singla, founder and chief executive of Alpha AMC, called it sector rotation rather than a broad uptrend, noting that lower crude prices and dovish Fed commentary have supported realty and consumption, while capital goods and power are seeing profit-booking.
Foreign institutional investors remained net buyers for a second straight session on Monday, albeit at a slower pace, purchasing shares worth a provisional ₹243.03 crore, according to CNBC TV18. Domestic institutional investors (DIIs) reversed their previous session's selling and emerged as strong net buyers, investing ₹3,791.42 crore in equities. According to CNBC TV18, on Friday, July 3, FIIs had turned net buyers after a four-session selling streak, purchasing equities worth ₹1,355.33 crore, while DIIs snapped their buying streak by offloading shares worth ₹1,953.89 crore. According to a JM Financial report, FIIs remained net sellers in the Indian equity market in June 2026, pulling out $3 billion, while DIIs were net buyers to the tune of $9 billion, underscoring the continued support from domestic investors. Over the past 12 months, India's primary markets attracted net FII inflows of around $8.1 billion, however, secondary markets witnessed net FII outflows of approximately $49.3 billion, the report said. The report added that banking, financial services and insurance (BFSI), capital goods, pharmaceuticals, automobiles, and oil and gas were the top five sectors in terms of FII shareholding in June 2026. FII ownership in Indian equities has steadily declined over the past decade, falling to 14.2% in June 2026 from 20% in June 2016, in contrast, DII ownership has risen consistently to 18.7% as of March 2026.
Experts attributed the rise majorly to positive news on the Q1FY27 earnings, with Ajit Mishra, SVP-research, Religare Broking noting that the positive undertone of the market was primarily driven by strong quarterly business updates from leading private sector banks, particularly HDFC Bank, which boosted sentiment across the financial space. According to The Financial Express, 19 of the 25 BSE sectoral indices ended in green during the day with realty and private banks emerging as the biggest gainers while PSU banks, hospitals and IT sectors emerged as laggards. Ankur Punj, MD & business head, Equirus Wealth said that the markets maintained their upward bias on Monday despite mixed global cues, driven by buying in select banking, auto, capital goods and realty shares. Siddharth Khemka, head of research – wealth management, Motilal Oswal Financial Services believes that the Indian equity markets will continue to move higher, supported by stable crude oil prices, steady rupee and strong pre-quarterly business updates. However, Mishra maintained a cautious approach and said that market participants remain watchful of the upcoming Q1 earnings season and key global macroeconomic developments for fresh directional cues. The calmness in the West Asia region and hopes for a relatively steady corporate earnings season kept investor mood optimistic, as per The Financial Express.
