Stock market update: The Indian equity benchmarks extended gains for a second consecutive session on 2 July 2026, driven by broad-based buying across segments.
BSE Sensex rallied 579 points (0.75%) to settle at 77,502.12, while Nifty 50 advanced 170 points (0.71%) to close at 24,175.70. Market breadth heavily favoured bulls with an overall advance-decline ratio of 2,226 to 1,145, while small-cap shares outpaced large-caps by jumping 1.25%.
On the sectoral front, IT stocks hogged the limelight, with Nifty IT surging 4.64%, led by heavyweights like Infosys and TCS. On the contrary, Nifty PSU Bank emerged as a minor laggard, slipping 0.43%. Sentiment was bolstered by easing macroeconomic concerns after Brent crude prices softened following indirect US-Iran diplomatic talks in Doha. Furthermore, remarks from Federal Reserve Chair Kevin Warsh signal that inflation risks have eased and that aggressive rate hikes may be off the table further calmed global markets.
Two stock recommendations by MarketSmith India:
Buy: Emcure Pharmaceuticals Limited (current price: ₹1,856)
- Why it’s recommended: Strong presence in domestic pharma, diversified product portfolio, leadership in women’s healthcare, strong chronic therapy focus, growing international business, strong R&D capabilities, expansion in biologics and specialty products, beneficiary of rising healthcare demand, strong manufacturing network, new product launch opportunities, healthy brand portfolio, export growth potential, improving operational efficiency, long-term pharma sector tailwinds, and strong growth in emerging markets.
- Key metrics: P/E: 36.08, 52-week high: ₹1,944.00, volume: ₹33.97 crore
- Technical analysis: Cup with handle base breakout
- Risk factors: Regulatory compliance risks, USFDA inspection risks, pricing pressure in generics, dependence on key therapeutic segments, raw material price volatility, currency fluctuation impact, intense competition in pharma, delays in product approvals, margin pressure from input costs, patent and litigation risks, R&D execution risks, supply chain disruptions, customer concentration risk, slowdown in export markets, and valuation risk after IPO.
- Buy: ₹1,837–1,865
- Target price: ₹2,110 in two to three months
- Stop loss: ₹1,750
Buy: Apollo Micro Systems Limited (current price: ₹439)
- Why it’s recommended: Strong defence and aerospace exposure, beneficiary of rising defence spending, focus on high-value electronic systems, beneficiary of "Make in India" initiative, growing order book visibility, diversified defence product portfolio, strong R&D capabilities, expansion into space sector opportunities, high entry barriers in defence electronics, long-term defence modernization tailwinds, increasing indigenization opportunities, export growth potential, strategic partnerships with defence agencies, strong execution capabilities, and scalable manufacturing capacity.
- Key metrics: P/E: 139.37, 52-week high: ₹446.90, volume: ₹774.21 crore
- Technical analysis: Trendline Breakout
- Risk factors: Dependence on government defence orders, order execution delays, customer concentration risk, revenue volatility from project-based orders, regulatory and policy risks, long defence procurement cycles, working capital intensive business, margin pressure from rising costs, technology obsolescence risk, competition in defence electronics, delays in order conversion, dependence on defence budget allocations, supply chain disruptions, valuation risk after sharp re-rating, and earnings volatility from order timing.
- Buy at: ₹435–441
- Target price: ₹510 in two to three months
- Stop loss: ₹410
Nifty 50: How the Benchmark Index Performed on July 2nd:
Indian equities extended their gains on 2 July, with Nifty 50 closing at 24,175.70, up 169.85 points (+0.71%), after trading in 24,058.80–24,194.55. The benchmark sustained buying interest throughout the session and ended near the day's highs, while Sensex advanced about 555 points (+0.72%) to 77,477.87. Positive global cues and softer crude oil prices boosted investor sentiment, with IT emerging as the standout performer (+4.64%), supported by strong gains in large-cap technology stocks. Broader participation remained healthy as Auto (+1.21%), Realty (+1.45%), Consumer Durables (+1.43%), Metals (+0.88%), FMCG (+0.56%), Healthcare (+0.56%) and Oil & Gas (+0.44%) also closed higher, while PSU Banks (-0.43%) were the only notable laggards. Market breadth remained firmly positive, with 2,226 stocks advancing against 1,145 declining, and 81 remaining unchanged, reflecting broad-based buying across sectors.
Nifty 50 has broken out of its prolonged consolidation range, which had been confined between the 50- and 100-DMA, signaling an improvement in the near-term technical structure. The breakout, coupled with a close above the 100-DMA, reflects strengthening buying momentum and suggests that the recent phase of consolidation may be giving way to a fresh directional move. Momentum indicators have become increasingly supportive, with the RSI rising to around 59 and moving above its signal average, reflecting strengthening bullish momentum while remaining away from overbought territory. Meanwhile, the MACD continues to trade above the signal line with expanding positive histogram bars, indicating sustained upside momentum and reinforcing the improving trend.
The breakout indicates renewed buying interest following an extended phase of range-bound trading. Going forward, 24,200 is expected to act as the immediate resistance, followed by 24,500. Beyond this, 24,650–24,800 will remain a critical area to monitor, as a sustained move above this range could reinforce the prevailing bullish momentum and strengthen the index's medium-term outlook.
How did Nifty Bank perform?
Nifty Bank opened on a positive note at 58,134.50 and witnessed mild intraday volatility during the session. The index touched an intraday high of 58,396.10, slipped to a low of 57,884.60, and finally settled at 58,031.65, ending almost unchanged with a marginal loss of 1.40 points (-0.00%). Despite testing lower levels during the day, it managed to recover a large part of the decline, indicating buying interest at lower levels. The formation of a relatively small-bodied candle after the recent upward movement reflects indecision, suggesting that market participants are awaiting fresh triggers before initiating the next directional move. However, the price structure remains constructive as the index sustains above key short-term averages.
The RSI is at 63.21, remaining comfortably above the neutral 50 mark, indicating that bullish momentum is still intact despite some moderation in buying strength. Meanwhile, the MACD continues to trade above its signal line with both indicators in positive territory, reflecting that the prevailing trend remains favorable for the bulls. Although the histogram has started to flatten, suggesting momentum is gradually cooling. There is no visible bearish divergence on the chart at present, keeping the broader technical outlook positive. However, traders should watch for any weakening in momentum if oscillators fail to confirm fresh price highs.
On the technical front, immediate support is seen around 57,850, followed by 57,200–57,000, where the 200-DMA is placed. A decisive breach below these levels could invite fresh selling pressure. On the upside, immediate resistance is placed near 58,400, while a sustained breakout above this hurdle could open the door towards the 58,800–59,000 region in the coming sessions. The index continues to trade above its 10-, 21-, 50-, and 100-DMA, reflecting a favorable medium-term structure. Positive domestic sentiment, stable banking fundamentals, and supportive global cues may help sustain the bullish bias. Although investors are likely to remain watchful of global macroeconomic developments and institutional flows before driving the next meaningful breakout.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.