Sensex rises 444 points; Nifty IT drops 2% on July 1

Market snapshot: benchmarks finish higher

Indian equities started July on a positive note, even as technology stocks stayed under pressure. The BSE Sensex rose 443.97 points, or 0.58 percent, to close at 76,922.64. The index also hit an intraday high of 77,110.08 after gaining as much as 631.41 points during the session. The NSE Nifty added 140.10 points, or 0.59 percent, to settle at 24,005.85. The Nifty reclaimed the 24,000 mark after slipping below it in the previous session. Early trade was firm, with Sensex up over 140 points while Nifty gained about 50 points at the open.

IT selloff dominates the narrative

The day’s headline move came from the IT pack, which dragged despite the broader market’s resilience. Nifty IT was described as the biggest sectoral loser, falling 1.62 percent in one reading and about 2 percent in another. The index has now fallen for the fourth straight day. It is also reported to be down more than 31 percent so far this year. Heavyweights were among the key drags, keeping sentiment cautious on the sector even as other pockets saw buying.

Top losers: Tech Mahindra, HCLTech and TCS lead declines

Several frontline IT names ended among the biggest losers on the Nifty 50. Tech Mahindra fell 3.18 percent in one update, and the day’s loser table showed it down 3.03 percent to Rs 1,362. HCL Technologies was also weak, falling 3.13 percent in one line and listed down 3.51 percent to Rs 1,034 in the loser table. Tata Consultancy Services was noted as down 1.79 percent in one update, while the table showed a sharper decline of 2.41 percent to Rs 1,983. Infosys also featured among decliners, listed down 1.51 percent to Rs 985.30. Outside IT, Hindalco slipped 1.78 percent in one update and was listed down 1.77 percent to Rs 939.70.

What lifted the benchmarks: FMCG, autos and realty

Buying was stronger in sectors such as realty, FMCG and autos, helping headline indices end in the green. Among sectoral indices, Nifty Realty, Nifty Media, and Nifty FMCG were reported as the top performers, rising 3.58 percent, 2.08 percent, and 2.07 percent, respectively. Nifty PSU Bank and Nifty Private Bank were also up nearly 1 percent each. Within the Nifty 50, Eternal, Adani Enterprises, Nestle India, Asian Paints, and Hindustan Unilever were listed as top gainers. The breadth was positive, with as many as 33 stocks ending higher in the Nifty 50.

Gainers list highlights: Eternal, Adani Enterprises, Nestle

The session’s top-gainer table showed sharp moves in select names. Eternal rose 5.71 percent to Rs 279.70. Adani Enterprises climbed 3.55 percent to Rs 3,144, while Nestle India gained 3.46 percent to Rs 1,454. Asian Paints advanced 3.07 percent to Rs 2,716 and Hindustan Unilever added 3.02 percent to Rs 2,182. Other gainers included Kotak Bank (up 2.10 percent), Adani Ports SEZ (up 2.10 percent), M&M (up 2.00 percent), SBI (up 2.00 percent), and Maruti Suzuki (up 1.99 percent). On the Sensex, Eternal, Asian Paints, Hindustan Unilever, Adani Ports, Kotak Bank, Mahindra and Mahindra, and State Bank of India were cited as leading gainers.

Sector check: IT, metal and pharma stay weak

Beyond IT, metals and pharma also slipped in the session’s sectoral performance rundown. Nifty Metal was down 0.98 percent in one update, and another summary noted Nifty Metal and Nifty Chemicals down 1 percent and 0.60 percent, respectively. Nifty Pharma was reported to have slipped 0.42 percent. The mixed sectoral picture underscored that the headline rally was not uniform. Investors rotated into defensives and domestic-facing themes while trimming exposure to tech and select cyclicals.

Broader market signals: KPIT profit warning hits sentiment

The pressure in the broader IT space was amplified by a sharp move in a midcap name. KPIT Technologies was reported as the biggest loser among the Nifty 500 stocks, plunging 17 percent to Rs 557 apiece after issuing a profit warning for the June quarter. KPIT also lowered its outlook for the rest of FY27, according to the update. The weak guidance weighed on other IT names, with Coforge, Birlasoft, HCL Technologies, Tech Mahindra, Tata Communications, and TCS falling between 2.5 percent and 6.5 percent.

Geopolitics and crude: a steady overhang

Alongside sector-specific triggers, investors also tracked geopolitical developments that influenced risk appetite. One market wrap cited persistent caution over US-Iran talks in Doha. Another summary referred to geopolitical tensions impacting crude oil prices. These concerns sat in the background even as domestic sector rotation supported the benchmarks. The mixed push and pull kept the day’s tone selective rather than broadly risk-on.

Key numbers at a glance

Market impact: what investors are reacting to

The session showed a clear divergence between index-level gains and sector-level stress in technology. Even with the Nifty back above 24,000, large IT names such as HCLTech, Tech Mahindra, TCS and Infosys weighed on sentiment. The scale of the Nifty IT decline, coupled with the report that the index is down over 31 percent this year, highlighted sustained pressure rather than a one-day move. Meanwhile, the leadership from realty, FMCG, and select large caps like Eternal and Nestle India helped keep benchmarks positive. The sharp fall in KPIT after a profit warning and guidance cut also fed into the cautious tone around IT earnings visibility.

Analysis: why the IT move matters even on an up day

A broad-market recovery can look healthy on the headline indices, but sector leadership often shapes investor positioning. A fourth straight decline in Nifty IT, with multiple heavyweights dropping more than 3 percent, indicates that selling pressure remains active in the sector. At the same time, the market’s ability to finish higher points to rotation rather than an outright risk-off day. The presence of geopolitical and crude-related concerns adds another layer of uncertainty, especially for globally linked sectors. For traders and investors, the key takeaway from the day is the widening gap between domestic-facing strength and technology-led weakness.

Conclusion

Sensex and Nifty ended July 1 higher, with the Nifty reclaiming 24,000 and the Sensex closing near 76,923 after touching 77,110 intraday. But the rally masked persistent weakness in IT, where Nifty IT fell about 2 percent and extended its decline to a fourth session. Markets will continue to watch how the IT selloff evolves after KPIT’s profit warning and lowered FY27 outlook, while also tracking geopolitics-linked cues that have been influencing crude prices.