DayStarter

Market snapshot

Equities and sectors

Indian equities opened the July series on a positive note even though IT stocks were weak. The Nifty 50 opened with a 32-point gap-up at 23,897. It moved back above 24,000 around 10:15 AM, gave up some gains toward 23,950, recovered above 24,000 again, and then stayed mostly in the 24,000-24,040 range through noon. Selling in the final hour reduced some of the gain, but the index still closed at 24,005.85, up 0.59%.

The Sensex closed at 76,922.64, up 0.58%, a gain of 443.97 points, while the Nifty added 140.1 points.

Sectoral indices

Realty was the strongest sector, followed by FMCG and Media. IT was the weakest sector and ended down 2.01%. Pharma and Metal also closed lower.

Top F&O gainers and losers

Among F&O stocks, Delhivery led the gainers. KPIT Technologies was the weakest name and ended down 16.46%.

Commodities, currency and bond yields

MCX commodities were mostly lower. Gold, silver, crude oil, natural gas, zinc, copper and aluminium all ended lower. In currency and rates, USD/INR was at 95.39, up 0.52%. The India 10-year bond yield was 6.76, up 0.09%, and the US 10-year bond yield was 4.41, up 0.92%.

Rupee readings varied slightly by source: USD/INR was 95.39, up 0.52%, while Mint quoted the rupee at ₹95.17 to the dollar and, in its News Wrap, at 95.16, down 60 paise.

Institutional flows

Foreign institutional investors were net sellers on 1 July, while domestic institutional investors were net buyers. FIIs sold ₹1,141.0 crore net, and DIIs bought ₹3,159.0 crore net. Over the five sessions, FIIs were net sellers of ₹6,507.0 crore, while DIIs were net buyers of ₹22,187.0 crore.

Macro View

The macro data showed an economy with continued activity, but with slower manufacturing momentum and higher wholesale inflation. GST collections remained strong, power demand rose sharply, and policy activity continued across wages, infrastructure, solar recycling and city-level output measurement.

Manufacturing PMI: India’s HSBC Manufacturing PMI eased to 54.2 in June from 55 in May. A reading above 50 still means manufacturing expanded, but the pace was slower than in May. Output and new orders expanded at their slowest pace in four years, excluding March. Export orders grew at the weakest rate since March 2023 because of weaker demand from Europe. The final reading was below the flash estimate of 54.5.

Wholesale inflation: All-India wholesale price index inflation accelerated to 9.68% in May from 8.26% in April. Fuel and power costs were the main drivers. WPI tracks wholesale prices, so a higher WPI can point to rising input costs for businesses.

GST collections: Gross GST collections rose 13.9% year-on-year to ₹1.95 lakh crore in June 2026. Net collections after refunds grew 11.2% to ₹1.62 lakh crore. GST from imports rose 34.6% to ₹60,038 crore, domestic collections rose 6.5% to ₹1.35 trillion, and refunds rose 29.1% to ₹32,436 crore. For Q1 FY27, from April to June, gross GST rose 8.4% to ₹6.32 trillion and net GST rose 7.1% to ₹5.40 trillion.

GST state detail: Uttar Pradesh collections rose 19% to ₹9,165 crore. Assam rose 17%, Punjab rose 14%, and Maharashtra rose 9% to ₹30,714 crore. Tamil Nadu fell 2%, Rajasthan fell 5%, and Madhya Pradesh fell 5%.

Power consumption: India’s power consumption rose 11.6% year-on-year to 166.46 billion units in June. Heatwave conditions and the delayed onset of the monsoon increased demand for cooling appliances.

Rural job wages: The Centre notified revised wage rates under the VB-G RAM G (Gramin) Act, 2025. A nationwide minimum wage of ₹300 per day came into effect from 1 July 2026. The national average notified wage rose to ₹327.4 per day from ₹298.8 under MGNREGA, an increase of ₹28.6 per day, or more than 10%. The statutory employment guarantee was raised from 100 days to 125 days. Haryana has the highest notified wage at ₹409 per day, followed by Goa at ₹406 and Kerala at ₹401.

Fuel prices and OMCs: Private refiner Nayara Energy cut petrol prices by ₹5 per litre and diesel prices by ₹3 per litre. The cut applied across 7,086 retail outlets and was the first fuel-price reduction by a private oil marketing company since the West Asia conflict began in February 2026. Mint put the network at about 7,000 pumps. The September Brent contract was near $72.16, August WTI was near $69.16, and the Indian crude basket was around $70.58, compared with a June average of $83.22. State OMCs, IOCL, BPCL and HPCL, account for 90% of India’s roughly 100,000 pumps and are estimated to face about ₹1 trillion in losses in Q1 FY27.

Solar waste recycling: The Centre is weighing a national policy on solar module recycling. The environment ministry and MNRE are consulting industry, and the CPCB is expected to play a key role. One key consideration is whether to mandate module recycling by 2029-30. India is the third-largest solar power producer in the world, with 157 GW installed and a target of 280 GW by 2030. CSTEP projects about 4.5 million tonnes of solar PV waste by 2050, and only about 20% is currently recovered.

City Economic Product: The housing ministry set up an inter-ministerial committee to create a standard method for estimating the economic output of Indian cities. This City Economic Product, or CEP, would be developed for the first time and led by the NIUA. India has 496 cities with populations above 100,000 and 53 cities above 1 million. The Economic Survey for FY26 said urban areas contribute almost 70% of India’s total economic output.

Infrastructure: The CCEA approved two road projects worth more than ₹14,000 crore. These include a ₹6,970-crore, 8-km six-lane tunnel in Delhi connecting Dwarka Expressway with Vasant Kunj, and a ₹7,145-crore, 242-km access-controlled Kanpur-Kabrai highway in Uttar Pradesh.

India-Japan ties: India and Japan are expected to deepen cooperation on AI and semiconductors during Japanese Prime Minister Sanae Takaichi’s 1-3 July visit. India-Japan bilateral trade reached $27.5 billion in 2025-26. Japanese investment was $3.2 billion between April and December 2025, and India hosts about 1,400 Japanese companies.

Zerodha, Mint

Corporate action and earnings

Earnings and deals

• KPIT Technologies: Shares fell as much as 16% after the company warned of its first quarterly revenue decline in nearly six years. The reason was client-driven project actions. The company also indicated that Q2 FY27 revenue is likely to be broadly in line with Q1. KPIT was the top F&O loser and ended down 16.46% at ₹561.00.
• Kotak-Deutsche Bank: Kotak Mahindra Bank plans to acquire Deutsche Bank’s retail banking, affluent private banking and wealth management business in India for approximately ₹282 crore. The deal would add about ₹29,000 crore in loans, ₹16,000 crore in deposits and ₹10,500 crore in AUM, along with roughly 150,000 customers and about 1,000 employees. Kotak shares settled 2.1% higher at ₹400.45 on the NSE.
• Re Sustainability: I Squared Capital and a TPG-CPPIB consortium are the final contenders to acquire a controlling stake in KKR-backed Re Sustainability. The transaction is expected to value the company at more than $1.6 billion. Binding bids are due over the next 10-15 days. Bain and Advent have dropped out.
• Zee Entertainment: The promoter Goenka family proposed investing up to ₹3,143.51 crore through fully convertible warrants issued to Sunbright International at ₹126 per share. This would raise Sunbright’s stake from 0.18% to just over 20%, and the family’s total stake to just under 25%. Zee shares settled 4.6% higher at ₹108.31.

Autos, payments and launches

• Ashok Leyland: The company launched India’s first range of trucks with air suspension. The models are the AVTR 4925 10x2 MAV, AVTR 4625 10x2 MAV and AVTR 4525 8x2 MAV. The range offers higher payload capacity.
• Royal Enfield (Eicher Motors): June sales rose 27% year-on-year to 1.14 lakh units. Domestic sales rose 34% to 1.02 lakh units, while exports declined 12% to 11,102 units.
• UPI: Transactions cooled in June after a record May. Value declined to ₹28.9 lakh crore from ₹29.9 lakh crore, and volumes eased to 22.72 billion from 23.2 billion, based on NPCI data.

Regulation and policy

• FSSAI: The regulator issued notices to several beverage brands over the use of the term “energy drink” and what it described as misbranding and misleading claims. The brands named include Red Bull, PepsiCo’s Adrenaline Rush and Sting, Monster, Hell-Energy, and Reliance’s Campa Energy-Gold Boost.
• SEBI celebrity ads: In a consultation paper, SEBI proposed allowing celebrity endorsements for asset management companies on a pre-approved basis. Parts of the mutual-fund industry were wary of the proposal. SBI Mutual Fund spent ₹67.8 crore on advertising in FY26, up 42%. HDFC Mutual Fund’s spend rose 15% to ₹53.5 crore, and UTI Mutual Fund’s spend rose 37% to ₹21.5 crore.
• Meta and WhatsApp usernames: The Ministry of Electronics and IT directed Meta not to proceed with the WhatsApp username feature because of potential impersonation and cyber-fraud concerns. The ministry sought an explanation within three days.
• Delhi HC and NSE: The Delhi High Court held that the National Stock Exchange is a “public authority” under the RTI Act, ending a 16-year legal battle.

Also in the news

• Also in the news: Dovetail Capital raised ₹100 crore in a Series A led by Elev8 Venture Partners. HSBC signed a letter of intent with Prestige Group for a 1.2-million-sq-ft GCC tower in Bengaluru. Crib acquired rent-financing firm CirclePe. Accenture leased 345,872 sq ft in Pune for ₹355.4 crore over 10 years. CPP Investments valued CtrlS Datacenters at ₹45,000 crore, with its stake set to rise to 10.3% from 8.2% if project milestones are missed. Magnet Hospitals debuted with eight city hospitals on a ₹224-crore investment. IndiGo launched cabin-baggage-only IndiGo Lite fares. Prudential HCL Health Insurance received its Irdai certificate as India’s eighth standalone health insurer.
• Auto sales and Mint Money: Passenger-vehicle sales are estimated to have risen about 25% in June to roughly 400,000 units. AI course enrolments rose over 70% year-on-year at Emeritus. Mint Money also tabulated NRE fixed-deposit rates across banks.

Zerodha, Mint

Global pulse

Global indices

Global indices were mixed. The Dow Jones, Nikkei 225 and Shanghai Composite closed higher, while the S&P 500, Nasdaq 100, Hang Seng and FTSE 100 closed lower.

Global developments

• Crude oil and US-Iran: Crude oil fell below $69 per barrel, its lowest level since late February. The move was linked to progress in US-Iran peace talks and improving shipping through the Strait of Hormuz. The US and Iran held indirect technical talks in Doha based on a 14-point interim accord. The September Brent contract was near $72.16, and WTI reached its lowest level since 27 February at $69.12.
• Eurozone inflation: Inflation eased more than expected to 2.8% in June from 3.2% in May. Forecasts were at 3.0%.
• Kroger-Giant Eagle: Kroger agreed to acquire food and pharmacy retailer Giant Eagle in a $1.65 billion deal.
• Klarna and Alphabet: Klarna Group shares rose 6% after its subsidiary PriceRunner won $1.97 billion in antitrust damages against Alphabet. A Swedish court ruled that Google unfairly favoured its own comparison-shopping service.
• Anthropic export controls: The US Commerce Department lifted export controls on Anthropic’s advanced Fable and Mythos AI models, less than three weeks after access was suspended over national-security concerns. The Commerce Department removed foreign-access restrictions on Fable 5. Anthropic is redeploying the model with a new set of classifiers. Some queries, including those related to cybersecurity and biology, are routed to its Claude Opus 4.8 model. Anthropic was valued at $965 billion and has filed confidentially for an IPO.
• Alphabet: Alphabet’s shares lost 6% in June even as the company, at $4.3 trillion, became the second-most valuable company and was added to the Dow Jones Industrial Average. Alphabet plans to raise about $85 billion through equity to fund capital expenditure. It has guided capital expenditure at as much as $190 billion for 2026.
• Indonesia B50: Indonesia implemented its 50% biodiesel blending mandate, known as B50. This raises the required palm-oil-based diesel blend from 40% to 50%.
• Other global developments: Ukraine expanded missile strikes into Russia. The death toll from twin earthquakes in Venezuela on 24 June neared 2,000. Chinese leader Xi Jinping described the Communist Party as a force for global progress in a speech marking its founding. US President Donald Trump disclosed more than $1 billion in income from crypto ventures in 2025. Meta is developing a cloud-infrastructure business to sell AI compute.

Zerodha, Mint

Management chatter

Two management comments stood out.

Zerodha

Feature: Delhi’s 2026 EV policy drops hybrids

Policy approval and timeline

Delhi’s new electric-vehicle policy, Delhi EV Policy 2.0, will be implemented from 1 July 2026 and remain in effect until 31 March 2030. The policy was announced by Chief Minister Rekha Gupta and cleared by the Delhi Cabinet.

Hybrid incentives removed

The approved policy gives no incentives for strong hybrid vehicles. This is the main change from the April 2026 draft EV policy, which had proposed a 50% road-tax and registration concession for hybrid cars. That concession does not appear in the final approved policy.

EV buyer benefits

Electric cars priced up to ₹30 lakh get a 100% exemption from road tax and registration charges. This narrows a benefit that earlier applied to all EVs in Delhi. EV cars up to ₹30 lakh are exempt from registration fees and road taxes, and a ₹1 lakh incentive is available for buying new EVs while scrapping old vehicles.

Purchase incentives are up to ₹30,000 for electric two-wheelers, up to ₹50,000 for electric three-wheelers, and up to ₹1 lakh for electric goods vehicles in the N1 category. Scrappage benefits can go up to ₹1 lakh for scrapping BS4-or-older vehicles and buying a new EV under ₹30 lakh within six months of the certificate of deposit.

Phased registration rules

From 1 January 2027, auto-rickshaws and N1 goods carriers will be eligible for registration in Delhi only if they are electric. From 1 April 2028, only electric two-wheelers will be registered. News On Air also reported that only electric two-wheelers will be registered from April 2028.

Policy funding and stated aim

The government plans to invest around ₹15,000 crore over the policy period. The people of Delhi are expected to receive benefits worth approximately ₹15,000 crore through the policy, including funding for EV infrastructure and year-on-year road-tax waivers.

The stated focus is to move Delhi toward zero-emission transport by 2030 and reduce vehicular pollution in the capital. The policy will be rolled out in phases from 1 July.

Autocar India; News On Air

Upcoming events

The economic calendar lists US monthly non-farm data and Korea inflation on 2 July, followed by FX reserves and Russia inflation on 3 July.

Corporate actions

Final dividends dominate the corporate-action calendar for 2-3 July, alongside a spin-off at Gujarat Gas and share buybacks at Rolex Rings and TeamLease. The ex date and record date fall on the same day.

Day at a glance

Closing

Primary sources: Zerodha AfterMarket Report, 1 July 2026 close; Mint, Mumbai edition, 2 July 2026. Feature source: Autocar India; News On Air / Prasar Bharati, accessed 2 July 2026. This briefing is a compilation of publicly reported information for educational purposes. It is not investment advice. Figures reflect the cited sources on their stated dates. Not investment advice.