The headline equity benchmarks ended with modest gains on Friday, extending gains for a third consecutive session. The rally was driven by positive global cues after weaker-than-expected US jobs data strengthened expectations of a Federal Reserve interest rate cut at its upcoming policy meeting. Realty and IT stocks led the gains, while buying interest remained broad-based across sectors.

The Nifty settled above the 24,250 mark. Realty, IT and pharma shares advanced, while PSU bank, media and auto shares declined.

As per provisional closing data, the barometer index, the S&P BSE Sensex gained 261.79 points or 0.34% to 77,763.91. The Nifty 50 index jumped 95.15 points or 0.39% to 24,270.85. In the three consecutive trading sessions, the Sensex rallied 1.68% while the Nifty jumped 1.69%.

In the broader market, the BSE 150 MidCap Index fell 0.25% and the BSE 250 SmallCap Index rose 0.09%.

The market breadth was positive. On the BSE, 2,264 shares rose and 1,975 shares fell. A total of 206 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 3.98% to 11.80.

In the commodities market, Brent crude for Sep 2026 settlement gained 17 cents or 0.24% to $71.97 a barrel.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 95.2100 compared with its close of 95.3550 during the previous trading session.

Economy:

India's services sector remained in expansion mode in June, although growth lost momentum amid challenging market conditions and softer client demand. The seasonally adjusted HSBC India Services PMI Business Activity Index eased to 57.4 in June from 59.8 in May, marking the weakest pace of expansion in 17 months, while remaining well above the 50-point threshold that separates growth from contraction. Hiring activity was largely stagnant, business confidence weakened, and cost pressures eased, while new export orders grew at the fastest pace in three months.

Initial Public Offer (IPO):

Knack Packaging received bids for 1,08,97,61,376 shares as against 1,89,64,018 shares on offer, according to stock exchange data at 15:30 IST on 03 July 2026. The issue was subscribed 57.46 times.

The issue opened for bidding on 01 July 2026 and it will close on 03 July 2026. The price band of the IPO is fixed between Rs 161 and 170 per share. An investor can bid for a minimum of 88 equity shares and multiples thereof.

Buzzing Index:

The Nifty Realty index climbed 2.19% to 890.80. The index surged 8.78% in the four consecutive trading sessions.

Lodha Developers (up 5.08%), Oberoi Realty (up 3.45%), Anant Raj (up 3.37%), Brigade Enterprises (up 3.32%), DLF (up 2.73%), Phoenix Mills (up 1.95%), Godrej Properties (up 1.24%) and Sobha (up 0.72%) advanced.

On the other hand, Aditya Birla Real Estate (down 1.06%) and Prestige Estates Projects (down 0.27%) edged lower.

Stocks in Spotlight:

Zydus Lifesciences gained 3.63% after the company signed memorandum of understanding (MoU) with Apollo Hospitals to introduce Shield, Multi-Cancer Detection (MCD) test available in India.

Maharashtra Seamless rose 0.77%. The company announced that Arup Mandal has resigned from the position of chief financial officer (CFO) of the company with effect from the close of business hours on 2 July 2026.

HCL Technologies jumped 5.80% after the company signed an agreement with a Europe headquartered, Fortune Global 50 Firm to transform their global digital workplace and enterprise networks using Artificial Intelligence (AI).

Marathon Nextgen Realty advanced 2.53% after the company announced that its subsidiary Sunset Spaces has executed a development agreement for the redevelopment of the society located at Versova, Mumbai.

Krystal Integrated Services rose 0.58%. The company has secured a work order from the Director of Backward Classes (BC) Welfare Department, Andhra Pradesh, for providing cleaning and sanitation services across government hostels.

Bluspring Enterprises gained 3.22% after the company's subsidiary, STEAG Energy Services (India) has secured a comprehensive operations and maintenance contract from Vedanta Aluminium Metal for a captive power plant. The contract covers a 1,215 MW (9x135 MW) captive power plant at VAML and has an estimated value of Rs 1,437.17 crore.

Central Bank of India rose 0.68%. The company reported a 28.77% year-on-year (YoY) increase in its global gross advances to Rs 3,54,895 crore as of 30 June 2026, compared with Rs 2,75,595 crore as of 30 June 2025.

PC Jeweller rallied 3.74% after the company reported an approximately 21% year-on-year increase in consolidated revenue for the quarter ended 30 June 2026.

Mahindra & Mahindra Financial Services slipped 1.21% after the company estimated the overall disbursement at approximately Rs 15,560 crore, YoY growth of around 21% (excluding finance lease).

Bajaj Finance gained 1.30% after its new loans booked rose 20% year-on-year to 1.61 crore in Q1 FY27, compared with 1.35 crore in the corresponding quarter last year.

Global Markets:

Most European markets traded lower, while Asian markets closed higher on Friday after weaker-than-expected US jobs data reinforced expectations of a Federal Reserve interest rate cut at its upcoming policy meeting. Meanwhile, regional business activity gauges pointed to continued economic expansion in June, supporting investor sentiment across Asia.

Japan's services sector returned to expansion in June after stalling the previous month, though business confidence remained subdued amid concerns over Middle East tensions and intensifying cost pressures, a private survey showed on Friday. The S&P Global final Japan Services Purchasing Managers' Index (PMI) rose to 52.2 in June from 50.0 in May, signalling a renewed rise in business activity.

Meanwhile, China's services activity expanded at a slightly slower pace in June as growth in new business eased, though overseas demand rose at the fastest rate in 20 months, a ⁠private-sector survey showed on Friday. The RatingDog China General Services Purchasing Managers' Index, compiled by S&P Global, fell to 54.1 from 54.4 in May, staying above the 50-mark that separates expansion from contraction.

In observance of Independence Day in the US, major American stock exchanges'including the NYSE and Nasdaq'are closed today, Friday, 3 July 2026. Regular trading will resume on Monday, 6 July 2026, at the standard time of 7:00 PM IST.

Overnight on Wall Street, the Dow Jones Industrial Average scaled to record highs on Thursday as investors reacted to a weaker-than-expected nonfarm payrolls report for June, while the Nasdaq Composite languished as semiconductors struggled once again.

The US economy added 57,000 jobs in June 2026, significantly below both the downwardly revised 129,000 recorded in May and market expectations of 110,000. It marks the weakest monthly job growth in four months, ending a streak of three consecutive months of stronger-than-expected gains.

The 30-stock average added 594.83 points, or 1.14%, for a record close of 52,900.07. The index hit a new all-time intraday high of 52,903.85. The S&P 500 rose less than 1 point to end at 7,483.24, while the Nasdaq dropped 0.8% to 25,832.67.

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