Indian stock market: Indian benchmark indices, the Sensex and the Nifty 50, extended their winning streak to a third straight session on Friday, July 3, led by gains in IT and pharmaceutical stocks despite mixed global cues.
The advanced 262 points, or 0.34%, to close at 77,763.91, while the Nifty 50 gained 95 points, or 0.39%, to settle at 24,270.85.
The market rally was also followed by robust domestic macroeconomic indicators, healthy GST collections, improving industrial activity, and sustained expansion across both the manufacturing and services sectors.
Stock Market Outlook next week
According to Ponmudi R, CEO – Enrich Money, investors are expected to remain focused on developments in the US–Iran negotiations, with looking for greater clarity on the prospects of a formal agreement. While recent reports point to constructive engagement, any setback could revive geopolitical concerns and weigh on risk sentiment.
“Crude oil prices will remain in focus after stabilising around $68–69 a barrel as concerns over disruptions to shipments through the Strait of Hormuz eased. Sustained stability in energy prices would be supportive for India’s inflation outlook and external balances.
Following softer-than-expected US labour market data, which reinforced expectations of a less hawkish Federal Reserve, investors will closely scrutinise the minutes of the Fed’s June policy meeting for further insights into policymakers’ assessment of the economic outlook and the likely trajectory of interest rates,” Ponmudi said.
Top 5 triggers for the Indian stock market
1] Q1 results 2026
The first quarter earnings season will kickstart in the coming week, with Tata Consultancy Services (TCS) among the first marquee company to announce its June quarter results on 9 July.
According to Ajit Mishra – SVP, Research, Religare Broking, investors will focus on management commentary regarding demand trends, discretionary spending, and AI-led business opportunities.
In addition, bank credit growth, deposit growth, and the latest foreign exchange reserves data will be watched for further insights into domestic liquidity conditions and the health of the banking sector, Mishra added.
2] US-Iran war
Iran is set to hold the funeral of former Supreme Leader Ali Khamenei on Saturday, with authorities anticipating a turnout of more than 20 million people in Tehran.
Meanwhile, US President Donald Trump has renewed his criticism of Washington’s NATO allies, accusing them of not contributing enough to defence spending.
In a post on Truth Social, Trump compared US military expenditure with that of allies such as the UK, France, Italy and Poland, describing the disparity in defence spending as “ridiculous.” “They were not there for us!!!” Trump wrote.
3] Crude Oil prices
Oil prices were largely unchanged during the week as traders remained hopeful that ongoing diplomatic efforts between the US and Iran could lead to a peaceful resolution.
rose 14 cents, or 0.19%, to $71.94 a barrel, leaving the benchmark just 5 cents below last Friday’s closing level. Meanwhile, West Texas Intermediate (WTI) crude gained 9 cents, or 0.13%, to trade at $68.78 a barrel.
Trading volumes remained subdued with U.S. markets closed ahead of the Independence Day holiday on Saturday. On Thursday, both Brent and WTI had slipped to their lowest levels since before the U.S.-Israeli conflict involving Iran began in late February.
4] FII activity
Foreign Institutional Investors (FIIs) remained net sellers during the current week, offloading equities worth ₹40.0 billion, according to provisional exchange data. In contrast, Domestic Institutional Investors (DIIs) stayed on the buying side, with net purchases amounting to ₹126.3 billion.
In the previous month of June 2026, FIIs were cumulative net sellers to the tune of ₹490.3 billion, while DIIs emerged as strong net buyers, investing ₹858.0 billion, based on provisional exchange data.
On a daily basis, FIIs were net sellers on all trading sessions during the current week except Friday. DIIs, meanwhile, were net buyers in four of the five sessions, with Friday being the only exception.
“Looking ahead, institutional flows are likely to remain sensitive to a range of key domestic and global developments. Investors will closely track the progress of the monsoon season, given its implications for rural demand, agricultural output, and inflation trends. Additionally, the upcoming Q1FY27 corporate earnings season will provide crucial insights into the health of corporate India and the sustainability of earnings growth. Global factors such as movements in crude oil prices and developments in the ongoing US-Iran peace talks will also remain important, as they could influence inflation expectations, energy costs, and overall risk sentiment,” said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.
5] Rupee vs Dollar
The Indian rupee strengthened by 17 paise to settle at 95.18 against the US dollar on Friday, supported by a pullback in the dollar index from its recent 15-month highs and gains in domestic equity markets.
Forex market participants noted that while the weaker dollar index and softer crude oil prices provided support, persistent dollar demand from importers and corporate hedgers continued to weigh on the local currency.
In the interbank foreign exchange market, the rupee opened at 95.20 against the greenback and moved within a range of 95.16 to 95.35 during the day’s trade before ending the session at 95.18, up 17 paise from its previous close.
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