Equities Snap Four-Day Rally; Bond Yields Up on Oil Price Rise

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

Representational Photo

By Dehuti Jani

July 7, 2026 at 12:18 PM IST

Indian equity benchmarks ended marginally lower on Tuesday, snapping a four-session winning streak as broad-based profit booking outweighed strength in information technology stocks ahead of the June-quarter earnings season.

The Nifty50 slipped 31.65 points or 0.13% to 24,398.70, while the BSE Sensex declined 104.35 points or 0.13% to 78,180.72, after both indices had rallied about 2.4% over the previous four sessions.

Market sentiment remained broadly constructive, supported by steady monsoon progress, continued foreign portfolio inflows and crude oil prices remaining well below their recent peaks. However, investors booked profits as the benchmarks hovered near 10-week highs and awaited the start of the June-quarter earnings season, with Tata Consultancy Services scheduled to report results on Thursday.

The Nifty IT index rose 2.4%, extending its July rebound, as easing expectations of further US interest-rate hikes improved sentiment towards export-oriented technology stocks. Among Nifty50 constituents, Titan Company, Tech Mahindra and HCL Technologies were the top gainers. Consumer durables and FMCG stocks also outperformed, while metal and realty shares lagged.

The rupee posted its strongest one-day gain in three weeks, rising 0.4% to 94.9675 per US dollar after increased dollar selling in the non-deliverable forward market triggered the unwinding of bearish positions.

Meanwhile, Indian government bonds weakened as higher crude oil prices and rising US Treasury yields weighed on sentiment. The benchmark 6.94% GS 2036 yield rose to 6.7069% intraday but ended at 6.6958%, up from 6.6851% in the previous session. Although overseas buying continued to provide support, Brent crude's rebound to around $73 per barrel revived concerns over imported inflation and capped gains in government securities.

Top Movers of the Day

Titan Company advanced 2.61% to ₹4,601.40 after reporting strong first-quarter business updates, with robust growth across its jewellery, watches and eyewear businesses, boosting investor sentiment.

Info Edge (India) jumped 13.14% to ₹1,159.90 as investors accumulated the stock amid strong buying interest in technology and internet-related shares.

Natco Pharma climbed 5.49% to ₹983.20 as buying in pharmaceutical stocks lifted the company's shares during the session.

RITES surged 8.81% to ₹235.20 on sustained investor buying, extending gains in the railway infrastructure and engineering consultancy stock.

PhysicsWallah rallied 10.72% to ₹149.58 on strong buying interest, making it one of the session's best-performing stocks.

DCM Shriram gained 2.04% to ₹1,038.40 as investors continued to accumulate the diversified manufacturing company's shares.

Havells India rose 3.71% to ₹1,225.30, aided by positive sentiment toward consumer electrical stocks and continued investor buying.

Jubilant FoodWorks advanced 3.86% to ₹455.15 after the company reported double-digit first-quarter revenue growth, lifting sentiment around the quick-service restaurant operator.

Latent View Analytics climbed 5.70% to ₹302.20 on strong investor buying, outperforming the broader market.

Data Patterns (India) fell 4.71% to ₹4,398.00 as investors booked profits in the defence stock amid broader weakness in the segment.

Trent slumped 12.40% to ₹2,929.10 after its first-quarter revenue growth, though strong, fell short of elevated market expectations, triggering a sharp sell-off.

Tata Power slipped 0.12% to ₹377.10 today on weaker than expected revenue figures, overvaluation concerns, and broad market sell off. The company’s revenue for January-March quarter of 2026 dropped 13% year-on-year.

Futures & Options
The Nifty July 2026 futures contract settled at 24,410, a premium of 11.30 points over the spot Nifty 50 close of 24,398.70, indicating a largely neutral undertone in the derivatives market. In the cash market, the Nifty 50 declined 31.65 points or 0.13% as investors booked profits after the recent four-session rally.

Meanwhile, India VIX fell 1.43% to 11.65, signalling easing near-term volatility expectations. Among stock futures, HDFC Bank, Infosys and Trent were the most actively traded contracts in the NSE F&O segment. The July 2026 derivatives series will expire on 28 July 2026.

Bond Market

Indian government bond yields edged higher on Tuesday as rising crude oil prices and higher US Treasury yields weighed on sentiment, although continued foreign portfolio investor buying limited the downside. The benchmark 6.94% GS 2036 yield rose to 6.6958% from 6.6851% at the previous close.

Dealers said the rise in Brent Crude to around $73 per barrel revived concerns over imported inflation, while the benchmark 10-year US Treasury yield climbed to 4.501%, reducing the relative appeal of Indian government bonds. However, steady FPI buying continued to provide an underlying bid for government securities, helping contain the rise in yields. Traders said the market will continue to track global cues while monitoring domestic supply after 13 states raised 213.50 billion rupees through the weekly state development loan auction, in line with the notified amount. West Bengal was the largest borrower, raising 47 billion rupees across three securities.

Forex
The Indian rupee posted its biggest single-day gain in three weeks on Tuesday, supported by strong dollar selling in the non-deliverable forward (NDF) market that triggered the unwinding of bearish positions. The rupee ended at 94.9675 per US dollar, up 0.4% from the previous close after trading in a narrow range during the first half of the session.

Traders said momentum improved sharply in afternoon trade as dollar selling intensified in the offshore NDF market. One-month NDF points briefly traded below the corresponding onshore forward premium, reversing the trend seen in recent sessions and signalling stronger dollar selling interest offshore. The move prompted traders with long-dollar positions to unwind their bets, helping the rupee record its strongest daily advance since mid-June

Crypto
The crypto market traded mixed on Tuesday. Bitcoin climbed back above $63,000 as buying interest returned following recent weakness, supported by improving on-chain indicators that suggest selling pressure is easing. The cryptocurrency remained volatile, trading in the $62,000-$64,000 range.

Ethereum outperformed several major cryptocurrencies, trading above $3,500 as institutional demand remained firm and spot Ether exchange-traded funds continued to attract net inflows. Traders remained cautious over the impact of higher global bond yields on risk assets.

US Stock Futures
US stock futures were mixed early Tuesday after the Dow Jones Industrial Average closed at a record high in the previous session, while a global sell-off in semiconductor stocks weighed on technology shares. Futures linked to the Dow Jones Industrial Average edged up 53 points, or 0.1%, while S&P 500 futures slipped 0.2% and Nasdaq-100 futures fell 0.9%. Chipmakers came under pressure across Asia and Europe, with the weakness spilling into US pre-market trading and dragging Nasdaq futures lower as investors pared exposure to the semiconductor sector.

US Treasury Notes

US Treasury yields edged higher in early trading, pushing bond prices lower as investors awaited key economic data and central bank signals. The benchmark 10-year Treasury yield rose 2 basis points to 4.50%, while the 30-year Treasury yield increased to 5.01%. The rate-sensitive 2-year Treasury yield also inched up to 4.14%. Investors remained cautious ahead of the US trade deficit data, the release of Federal Open Market Committee meeting minutes, and developments related to the NATO Summit.

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