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EQUITY
Key gauges extend gains for 4th day
Jul-06-2026

Extending gains for the fourth consecutive trading session, Indian equity benchmarks ended higher by over half percent on Monday, helped by buying in blue-chip bank stocks and lower crude oil prices. Fresh foreign fund inflows also added to the optimistic trend in domestic equity market. However, market participants remained watchful of the upcoming Q1 earnings season and key global macroeconomic developments for fresh directional cues.

Some of the important factors in trade:

India-Israel BIA takes effect from July 4, aims to boost bilateral investments: With an aim to ensure a secure and predictable investment climate between the India and Israel, the Finance Ministry has said that the India-Israel Bilateral Investment Agreement (BIA) came into force on July 4. 2026. 

India targeting ambitious 16-17% growth in merchandise exports in FY27: Commerce and Industry Minister Piyush Goyal has said that India is targeting an ambitious 16-17 percent growth in merchandise exports to about $530 billion in FY27. He said that the services sector is aiming for 11 percent growth to about $470 billion during FY27. 

Jaishankar discusses bilateral cooperation, regional development with Qatar's Prime Minister: The External Affairs Minister S Jaishankar has held talks with Qatar's Prime Minister Mohammed bin Abdulrahman Al-Thani and reviewed several areas of bilateral cooperation, including energy, trade, investments, connectivity and security. 

Revitalise priority sector export credit to sustain export growth: Federation of Indian Export Organisations (FIEO) has said that India's exports continue to hold up well in a volatile global market, though institutional credit support remains inadequate, adding that priority sector lending (PSL) for export credit has witnessed a significant decline, with export credit contracting by nearly 14% in the recent period.

Global front: European markets were trading mostly in green amid easing concerns about geopolitical tensions and expectations the central banks will likely hold interest rates for now. Asian markets ended mixed as investors waited for the corporate earnings season to unfold amid concerns over high valuations in AI-linked companies. 

Finally, the BSE Sensex rose 521.16 points or 0.67% to 78,285.07 and the CNX Nifty was up by 159.50 points or 0.66% to 24,430.35.

The BSE Sensex touched high and low of 78,398.06 and 77,879.70, respectively. There were 14 stocks advancing against 16 stocks declining on the index.     

The top gaining sectoral indices on the BSE were Realty up by 1.82%, Capital Goods up by 1.19%, Consumer Durables up by 1.19%, Auto up by 1.14% and Metal up by 0.89%, while IT down by 0.58%, Utilities down by 0.21%, PSU down by 0.10% and TECK down by 0.03% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC Bank up by 3.59%, Mahindra & Mahindra up by 2.02%, Bharat Electronics up by 1.79%, Reliance Industries up by 1.31% and ICICI Bank up by 1.12%. On the flip side, Kotak Mahindra Bank down by 3.89%, TCS down by 1.68%, Bajaj Finserv down by 0.99%, Power Grid down by 0.89% and Adani Ports &Special down by 0.55% were the top losers.

Meanwhile, with an aim to ensure a secure and predictable investment climate between the India and Israel, the Finance Ministry has said that the India-Israel Bilateral Investment Agreement (BIA) came into force on July 4. 2026. The pact, which provides protection for two-way investments, is likely to boost cross-border investment activity. India and Israel had signed the agreement on September 8, 2025.

Under the agreement, India has reduced the local remedies exhaustion period for Israeli investors to three years from the standard five years. Local remedies exhaustion requires investors to first seek resolution of disputes through the host country's legal system before approaching international arbitration.

In a departure from India's previous bilateral investment treaties, the India-Israel BIA also covers portfolio investments. Israel is the first member of the Organisation for Economic Co-operation and Development (OECD) with which India has signed such an agreement. The pact is likely to facilitate higher bilateral investment flows. Between April 2000 and March 2026, India received foreign direct investment (FDI) worth $371.35 million from Israel.

The implementation of the agreement is significant as the two countries are also negotiating a free trade agreement (FTA). However, the talks have progressed slowly due to the West Asia crisis. Meanwhile, India is simultaneously negotiating bilateral investment treaties with several other countries, including Saudi Arabia, Qatar, Oman, Switzerland, Russia, Australia, and the European Union. These treaties are aimed at protecting and promoting investments in each other's markets.

CNX Nifty touched high and low of 24,458.65 and 24,287.10, respectively. There were 24 stocks advancing against 26 stocks declining on the index.   

The top gainers on Nifty were HDFC Bank up by 3.36%, Hindalco Industries up by 2.71%, ONGC up by 2.50%, Bajaj Auto up by 2.48% and Mahindra & Mahindra up by 2.08%. On the flip side, Kotak Mahindra Bank down by 3.91%, Max Healthcare down by 1.84%, TCS down by 1.65%, Coal India down by 1.45% and Bajaj Finserv down by 1.11% were the top losers. 

European markets were trading mostly in green; France’s CAC rose 7.93 points or 0.09% to 8,516.00 and Germany’s DAX gained 44.29 points or 0.17% to 25,823.60, while UK’s FTSE 100 decreased 21.24 points or 0.2% to 10,657.79.

Asian markets ended mixed on Monday as investors cautiously awaited the corporate earnings season to unfold amid concerns over high valuations in AI-linked companies. Market participants also looked ahead to the US Federal Reserve's June meeting minutes, due on Wednesday, for further clues on the direction of US monetary policy. Markets received some support from persistent decline in oil prices, with Brent crude trading below $72 a barrel as millions of barrels of oil continued to flow through the Strait of Hormuz and OPEC+ members backed another modest rise in collective quotas for next month. Japanese markets ended mixed, even as currency pressures loomed with the Japanese yen weakened toward 162 per dollar. Meanwhile, Hong Kong shares gained, supported by stronger-than-expected private-sector activity after the S&P Global Hong Kong SAR PMI climbed to 52 in June from 50.4 in May, marking the fastest expansion since February. Investors were also awaiting China's June consumer price index (CPI) and producer price index (PPI) data for fresh signals on the country's economic recovery.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

4,041.24

-2.41

-0.06

Hang Seng

23,616.32

266.29

1.14

Jakarta Composite

5,916.07

40.29

0.68

KLSE Composite

1,683.53

4.48

0.27

Nikkei 225

69,737.69

-6.38

-0.01

Straits Times

5,259.81

15.52

0.30

KOSPI Composite

8,051.33

-37.01

-0.46

Taiwan Weighted

46,556.39

-224.23

-0.48
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