Stock Market Today: India’s stock market should see a robust start today, supported by an unusually strong mix of positive developments globally as well as locally. US-China trade optimism, along with investor bets on additional rate cuts by the US Federal Reserve, is fuelling bullish sentiment across global markets. The bullish sentiment has already been echoed in Friday’s global market performance and is likely to spill-over into the Indian equity landscape this week.
Stock Market Today
Global Catalysts Lifting Positive Market Sentiment
On the international sideFor the moment anyway, Wall Street ended the week with a bullish streak on Friday. The S&P 500 and Nasdaq hit all-time highs, while the Dow Jones climbed to a four-month peak, marking a weekly rally of nearly 1%. This bullishness was underpinned by increasing bets that the Federal Reserve might do three more cuts in 2025, a decision that would likely fuel liquidity and risk-on sentiment across global equities. Further buoying this positive sentiment is news that US-China trade negotiations may be extended past their current deadline of July 9, providing global investors with even more confidence with respect to calming geopolitical storms.
The US Dollar Index, the international measure of US dollar strength—had recently dropped to a three-year low around 97, providing a boost to risky emerging market assets such as India. As a result, this decline significantly lowered import bills for countries that are reliant on dollar-denominated commodities, including crude oil. Brent crude prices have moderated back to $67 per barrel, prior to this week’s OPEC+ meeting, taking the edge off inflation worries and boosting India’s current account picture.
FIIs Turn Aggressive Buyers, Gift Nifty Positive Signals Strong Opening Strong Opening
The logical response would be the lifting of irrationally high cash market limits which are often called vehicle limits but wouldn’t even allow a single passenger bus to enter the Indian market. Without question, the Indian market has enjoyed tremendous tailwind from strong FI participation. Only in the last two sessions, FIIs have infused more than ₹ 14,000 crore, a vote of confidence in India’s macro stability and corporate development potential. Currently, Gift Nifty is trading 44 points higher (0.2%), indicating a positive start for the benchmark indices.
On Friday, the Nifty 50 was up almost 0.5%, finishing over the 26,000 level, its highest in more than eight months. This increase was mainly driven by blue-chip stocks and sectors sensitive to international cues, like IT, autos, and financials.
Stock Market Highlights This Week: Best Performing Strategies & Stocks
Supportive domestic indicators continue to spur the stock market bullish run.
Besides the global cues, a number of important domestic macroeconomic indicators are stacking in favor of Indian equities. The biggest positive factor going in has been this early and well-distributed monsoon, which reached the last corner of the country nine days ahead of the schedule. A phenomenon that has occurred only once in the last 25 years. This would increase rural demand and enhance agri-growth laying a robust groundwork for Q1 FY26 corporate earnings.
Additionally, the USD/INR has fallen to a two-week low under 86, providing more relief to importers and reinforcing calm in inflationary pressures. These currency movements further increase the attractiveness of Indian markets to global investors looking for currency-adjusted returns.
Handshake/Key Triggers to Watch This Week
This week is loaded with major market-moving catalysts that may impact the near-term direction of the market, as evidenced by returns in the past.
Likely to show robust YoY growth supported by rural demand and low base effect.
Listing of HDB Financial Services (July 2): Despite uncertainty with respect to public offers, market participants are keenly tracking this event of deep strategic importance with respect to one of the key NBFC arms of HDFC Bank.
A strong GST Collection figure would be a strong positive indicator of the economy continuing to show resilience and would greatly help in ensuring fiscal stability.
TCS will have the honor of opening the earnings season and its performance will dictate the overall mood for the IT sector.
Buy-on-Dip Strategy Likely to Rule
With all of this positive global sentiment, oil prices coming down, FII flows at a strong clip and improving domestic fundamentals, sentiment in the Indian markets continues to be bullish. Any near-term downturns will be seen as buying opportunities, particularly with a long line of large-cap stocks remaining at attractive valuations.
The headline drivers to watch for investors continue to be Fed commentary and inflation data from the US, and OPEC+ decisions this week which could trigger short-term volatility.
Conclusion on Stock Market Today
The Indian stock market starts the week on a high note, as there were tailwinds from global and domestic fronts propelling the rally. All eyes will start to turn away from the macroeconomic fundamentals and toward corporate earnings and high-frequency economic data. The signposts are clear. With FIIs returning, the monsoon growing strong and a more favourable global liquidity environment, the Nifty and Sensex should resume their upward journey in the near term, reconfirming India’s place as the most attractive investment destination in the Asia-Pacific.
