Sensex rises 650 points, Nifty nears 24,400 as IT and metal stocks surge
Synopsis
Indian markets shrugged off a weak Wall Street close to open nearly 1 per cent higher on 3 July, with IT stocks surging close to 2 per cent even as global tech faces a sell-off. The Sensex added 650 points and India VIX dropped to 12.09 — but analysts warn that any renewed weakness in global semiconductors could quickly reverse domestic IT gains.
Key Takeaways
BSE Sensex opened at 78,152.34 , up 650 points or 0.84 per cent on 3 July .
Nifty50 rose 200 points or 0.83 per cent to 24,375.65 at open.
Nifty IT surged nearly 2 per cent ; Nifty Metal gained 1.66 per cent .
Nifty PSU Bank bucked the trend, declining 0.87 per cent ; SBI and Axis Bank among top losers.
India VIX fell 1.62 per cent to 12.09 , signalling reduced near-term volatility.
Key Nifty resistance at 24,300 – 24,450 ; support at 24,050 , with 23,900 as the next downside level.
Indian equity markets opened sharply higher on Friday, 3 July, with benchmark indices gaining nearly 1 per cent each, driven by broad-based buying in IT, metal, pharma, and chemical stocks amid mixed global cues.
The BSE Sensex began the session at 78,152.34, up 650 points or 0.84 per cent, while the Nifty50 opened around 200 points or 0.83 per cent higher at 24,375.65.
Sector Highlights
Nifty IT surged nearly 2 per cent, leading the sectoral charge, while Nifty Metal gained 1.66 per cent. The Nifty MidSmall IT & Telecom, Chemicals, and Pharma indices advanced over 1 per cent, 0.82 per cent, and 0.72 per cent, respectively. In contrast, the Nifty PSU Bank index slipped 0.87 per cent, bucking the broader trend.
Among Nifty 50 constituents, Tata Motors Passenger Vehicles (TMPV), NTPC, SBI, and Axis Bank were the top losers of the session.
Broader Market Performance
The broader market remained firm. The Nifty Smallcap 50 and Nifty Smallcap 100 indices rose 0.48 per cent and 0.46 per cent, respectively. The Nifty 100 gained 0.46 per cent, while the Nifty 500 advanced 0.41 per cent. The India VIX — the market volatility gauge — fell 1.62 per cent to 12.09, signalling reduced near-term anxiety among traders.
Technical Outlook
According to market experts, the near-term outlook remains cautiously optimistic. For the Nifty, sustained strength above the 24,000 mark keeps the broader trend positive, with immediate resistance seen at 24,300, followed by 24,450. On the downside, 24,050 is a key support level; a breach could trigger a corrective move towards 23,900, analysts noted.
Experts also flagged that investors should remain watchful of the ongoing global technology sell-off, as renewed weakness in semiconductor stocks could prompt profit-booking after the recent sharp rally in domestic IT names.
Global Cues
International oil benchmark Brent crude rose 0.77 per cent to $72.36 per barrel, while US West Texas Intermediate (WTI) crude gained 0.68 per cent but remained below $70 per barrel. In Asian markets, shares traded largely higher, with the Nikkei, Hang Seng, and KOSPI rising up to 3 per cent. Wall Street ended lower overnight, with the Nasdaq declining 0.80 per cent and the S&P 500 closing flat, weighed by selling in technology shares.
With domestic IT names rallying even as global tech faces headwinds, the divergence between Indian and US tech sentiment will be a key factor to watch in the sessions ahead.
Point of View
And not always the bullish one. The PSU Bank drag is also telling: with rate-cut expectations still uncertain, state-owned lenders remain a structural laggard. The low VIX reading of 12.09 suggests complacency, not confidence — and with global semiconductor weakness unresolved, the rally's durability hinges on whether US tech finds a floor before domestic profit-booking kicks in.
NationPress
3 Jul 2026
Frequently Asked Questions
Why did the Sensex and Nifty open higher on 3 July?
The Sensex rose 650 points and the Nifty gained 200 points at open on 3 July, driven by strong buying in IT, metal, pharma, and chemical stocks. Positive Asian market cues, with the Nikkei, Hang Seng, and KOSPI rising up to 3 per cent, also supported sentiment despite a weak overnight close on Wall Street.
Which sectors led the market rally on 3 July?
Nifty IT surged nearly 2 per cent, making it the top-performing sector. Nifty Metal gained 1.66 per cent, while Nifty MidSmall IT & Telecom, Chemicals, and Pharma advanced over 1 per cent, 0.82 per cent, and 0.72 per cent, respectively.
Which stocks were the top losers in the Nifty 50 on 3 July?
Tata Motors Passenger Vehicles (TMPV), NTPC, SBI, and Axis Bank were among the top losers in the Nifty 50 during the opening session. The Nifty PSU Bank index also declined 0.87 per cent, bucking the broader upward trend.
What are the key Nifty support and resistance levels to watch?
Market experts place immediate Nifty resistance at 24,300 and 24,450. On the downside, 24,050 is the key support level; a breach there could trigger a corrective move towards 23,900. Sustained trade above 24,000 is seen as keeping the broader trend positive.
What global risks could derail the IT rally?
Analysts warn that renewed weakness in global semiconductor stocks could prompt profit-booking in domestic IT names after their recent sharp run-up. Wall Street's Nasdaq declined 0.80 per cent overnight on technology selling, and any further deterioration in global tech sentiment could spill over into Indian IT stocks.
