Equities Extend Four-Day Rally on HDFC Bank; Bond Yields Ease

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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By Dehuti Jani

July 6, 2026 at 12:06 PM IST

Indian equity benchmarks advanced for a fourth consecutive session on Monday, led by strong gains in HDFC Bank after its June-quarter business update, while lower crude oil prices and improving monsoon prospects continued to support investor sentiment.

The Nifty50 rose 0.66% to 24,430.35, while the BSE Sensex gained 0.67% to 78,285.07, with both indices closing at their highest levels in around 10 weeks.

Market sentiment was underpinned by easing Brent Crude prices, a narrowing monsoon rainfall deficit and continued signs of foreign investors returning to Indian equities. Lower oil prices also improved the outlook for inflation and corporate margins.

HDFC Bank climbed 3.6% after reporting a 15.4% year-on-year increase in gross advances for the June quarter, contributing more than half of the Nifty's gains. Realty, auto, oil & gas and consumer durable stocks outperformed, while the IT index slipped 0.6% as investors awaited the start of the June-quarter earnings season.

Among Nifty50 constituents, HDFC Bank, Hindalco Industries and Oil and Natural Gas Corporation were the top gainers.

The rupee weakened 0.2% to 95.3950 per US dollar, its lowest level in about three weeks, as a firmer US dollar and non-deliverable forward-related demand weighed on the local currency.

Meanwhile, Indian government bonds extended gains as lower crude oil prices supported sentiment. The benchmark 6.94% GS 2036 yield eased to around 6.68% from 6.7136% in the previous session. Dealers said steady foreign portfolio investor buying continued to underpin the market, although profit booking limited further gains.

Top Movers of the Day

HDFC Bank closed at ₹828.00, up 3.36%, after its Q1 FY27 business update showed advances rising 15.4% and deposits 14.7%, lifting the Nifty Bank index.

Mahindra & Mahindra ended at ₹3,202.00, up 2.08%, as strong sales momentum and an improving demand outlook for SUVs and tractors supported auto stocks.

Bharat Electronics settled at ₹425.00, up 1.66%, extending gains amid continued optimism in defence stocks.

Reliance Industries closed at ₹1,321.70, up 1.36%, supported by strength in its energy and consumer businesses as crude oil prices eased.

ICICI Bank finished at ₹1,426.50, up 1.07%, on expectations of strong June-quarter earnings and a healthy credit growth outlook.

Omaxe jumped to ₹90.19, up 13.45%, as robust housing demand and strong NCR sales lifted real estate stocks.

Sun Pharma Advanced Research Company rallied to ₹263.30, up 10%, on optimism surrounding its specialty drug pipeline.

Welspun Corp surged to ₹1,525.80, up 5.95%, amid optimism over infrastructure order flows.

Dixon Technologies climbed to ₹13,319.00, up 6.93%, on expectations of sustained growth in electronics manufacturing.

Manappuram Finance rose to ₹347.90, up 6%, supported by expectations of steady loan growth and healthy demand for gold loans.

Kotak Mahindra Bank fell to ₹381.25, down 3.91%, as investors booked profits following its June-quarter business update.

Zensar Technologies dropped to ₹477.50, down 7.48% as investors locked in gains after the recent rally in mid-cap stocks.

Futures & Options
The Nifty July 2026 futures contract settled at 24,479.90, a premium of 49.55 points over the spot Nifty 50 close of 24,430.35, indicating a positive undertone in the derivatives market. In the cash market, the Nifty 50 gained 159.50 points or 0.66%, extending its winning streak to a fourth consecutive session.

Meanwhile, India VIX edged up 0.16% to 11.82, signalling largely stable near-term volatility expectations. Among stock futures, HDFC Bank, Dixon Technologies and Reliance Industries were the most actively traded contracts in the NSE F&O segment. The July 2026 derivatives series will expire on 28 July 2026.

Bonds
Indian government bond yields declined on Monday as lower crude oil prices and steady foreign portfolio investor buying continued to support demand for government securities. The benchmark 6.94% GS 2036 yield fell to 6.6851% from 6.7136% at the previous close.

Dealers said overseas investors remained consistent buyers through the session, supported by expectations that Indian government bonds will be included in the Bloomberg Global Aggregate Index.

However, gains were capped by profit booking as the benchmark 2036 yield approached the 6.68% level, which traders view as a key near-term support. Activity at the shorter end of the yield curve also remained subdued as investors awaited greater clarity on the global interest-rate outlook.

Forex
The Indian rupee slipped to a three-week low Monday as a broadly firm dollar weighed on Asian currencies, with maturing NDF contracts adding further pressure on the local unit. The rupee closed at 95.3950 per dollar, down 0.2% on the day, after touching an intraday low of 95.4750 — its weakest level since June 12.

State-run banks were seen offering dollars intermittently, signaling the central bank's intent to curb a sharp slide. Traders say a gradual depreciation bias could resurface if the rupee dips and holds below 96, though Goldman Sachs has turned more bullish, revising its USD/INR forecasts to 94, 95, and 96 over three, six, and 12 months, compared with 96, 96, and 97 previously.

Crypto
Crypto markets traded with a positive bias on Monday as easing concerns over US interest rates improved risk appetite, although investors remained cautious amid subdued trading activity. Bitcoin traded around $62,967, moving within a narrow intraday range of $62,468-$63,874, indicating a lack of clear directional momentum as buyers and sellers remained evenly matched.

Ethereum traded near $1,768, supported by growing expectations that cooling US inflation could allow the Federal Reserve to adopt a less hawkish policy stance. Lower interest-rate expectations improved sentiment towards risk assets, although Ethereum remained at a key technical level as investors assessed the prospects for a sustained recovery.

US Stock Futures
US stock futures traded higher on Monday as investors returned from the Independence Day holiday, extending last week's strong gains that lifted the Dow Jones Industrial Average to record highs. Futures tied to the Dow Jones Industrial Average were little changed, while S&P 500 futures gained 0.5%. Nasdaq-100 futures outperformed, rising 1.1%.

Technology stocks led premarket gains, with the Technology Select Sector SPDR Fund advancing 1.2%. Western Digital climbed 4%, while Marvell Technology and Oracle rose more than 3% each.

US Treasury Notes
US Treasury yields edged lower in Asian trading on Monday after weaker-than-expected US employment data prompted investors to trim expectations of further Federal Reserve rate hikes. The benchmark 10-year Treasury yield eased to 4.461%, while the policy-sensitive 2-year Treasury yield slipped to 4.112%.

Bond sentiment was also supported by softer energy prices, with Brent Crude trading just below $72 per barrel after OPEC+ agreed to increase oil production and shipping through the Strait of Hormuz continued to normalise. Lower oil prices helped ease inflation concerns, underpinning demand for US government bonds.

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