Sensex Surges 450+ Points, Nifty Reclaims 24,400 As Realty, Auto Stocks Rally

Stock Market Today, July 6: Indian benchmark indices traded sharply higher on Monday, driven by strong buying in banking, realty, auto and defence stocks.

While weakness in IT shares limited the upside. At around 11:10 am, the BSE Sensex was up 464.80 points, or 0.60%, at 78,228.71, while the NSE Nifty50 gained 144.70 points, or 0.60%, to trade above the 24,400 mark at 24,415.55.

Banks, Realty And Autos Lead Rally

Buying remained broad-based across sectors, with the Bank Nifty rising 0.63% to 58,305.20, supported by gains in private banking stocks.

Among Sensex constituents, HDFC Bank emerged as the top performer, climbing 2.80%. Mahindra & Mahindra, Bharat Electronics (BEL), Reliance Industries, ICICI Bank and Maruti Suzuki also traded firmly in the green.

On the other hand, Kotak Mahindra Bank was the biggest loser, falling over 3%. IT majors TCS, Infosys and Tech Mahindra remained under pressure, while Bajaj Finserv and Power Grid also traded lower.

Sectorally, Nifty Realty led the gains with a 1.86% rise, followed by Auto, Consumer Durables, Oil & Gas and Metal indices. Nifty IT was the only major laggard, slipping nearly 1%, while Media, Pharma and PSU Bank indices also traded lower.

The broader market remained positive, with the Nifty Midcap 100, Smallcap 100 and Nifty 500 indices posting modest gains. India VIX edged higher to 11.83, indicating volatility remained relatively subdued.

Defence Stocks Gain After ₹52,000-Crore DAC Nod

Defence stocks extended gains after the Defence Acquisition Council (DAC) approved capital acquisition proposals worth nearly ₹52,000 crore to strengthen the armed forces.

Paras Defence and Space Technologies surged more than 5%, emerging as the top gainer in the segment. Bharat Electronics, Hindustan Aeronautics (HAL) and Mazagon Dock Shipbuilders also traded higher, lifting the Nifty India Defence index by over 1%.

Chaired by Defence Minister Rajnath Singh, the DAC granted Acceptance of Necessity (AoN) for several procurement proposals, including anti-drone electronic warfare systems, Man Portable Anti-Tank Guided Missile (MPATGM) systems, Medium-Range Surface-to-Air Missile (MRSAM) systems, Very Short Range Air Defence Systems (V-SHORADS), active protection systems for tanks and jet-powered kamikaze drones.

Focus Shifts To Q1 Earnings

With the June-quarter earnings season set to begin this week, investors are now looking to corporate earnings and management commentary for fresh market triggers.

V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said improving monsoon conditions and renewed foreign institutional investor (FII) buying have strengthened near-term market sentiment.

He expects the June-quarter earnings season to be relatively subdued overall due to the impact of higher energy prices and geopolitical tensions in West Asia. However, he believes financials and automobile companies are likely to outperform, supported by healthy credit growth and stronger vehicle sales, while IT companies may post muted earnings and cautious guidance.

According to Vijayakumar, buying on market declines remains the preferred strategy in the current environment.

Asian Markets Mixed

Asian markets traded mixed on Monday. Hong Kong’s Hang Seng and China’s FTSE China 50 posted gains, while Japan’s Nikkei 225, South Korea’s Kospi, Australia’s ASX 200 and Indonesia’s Jakarta Composite traded lower.

US index futures were also mixed in early trade, with Nasdaq 100 futures leading gains, while S&P 500 futures edged higher and Dow futures remained largely flat.