Sensex, Nifty Rally in Early Trade on Trade Deal Optimism, Strong Manufacturing Data
GG News Bureau
Mumbai, 2nd July: Benchmark Indian equity indices, Sensex and Nifty, opened strong in early trade on Wednesday, July 2, 2025, driven by optimism surrounding a potential trade agreement with the United States and robust buying in IT blue-chip stocks.
The 30-share BSE Sensex climbed 236.56 points to reach 83,933.85 in initial trading. Similarly, the 50-share NSE Nifty advanced by 66.3 points, touching 25,608.10.
Among the Sensex constituents, Infosys, Tech Mahindra, Tata Steel, Sun Pharma, Tata Consultancy Services, and Tata Motors emerged as the top gainers, contributing significantly to the market’s upward momentum. Conversely, Bajaj Finserv, Asian Paints, Bharat Electronics, and Bajaj Finance were among the few laggards.
The positive market sentiment is bolstered by strong domestic economic indicators. India’s manufacturing sector demonstrated robust growth in June, with the Purchasing Managers’ Index (PMI) rising to a 14-month high of 58.4. This surge was attributed to improved output and new orders, alongside a record upturn in employment. The seasonally adjusted HSBC India Manufacturing PMI stood at 57.6 in May, indicating a healthy expansion.
Vikas Jain, Head of Research at Reliance Securities, commented on the market’s outlook, stating, “The market is expected to open on a positive note, supported by strong domestic cues such as a 14-month high in manufacturing PMI, a narrowing trade deficit, and optimism around a potential trade agreement with the US.”
However, the Gross GST collection for June, released on Tuesday, saw a 6.2% increase to over ₹1.84 lakh crore, though it slipped below the ₹2 lakh crore mark recorded in the preceding two months. A year ago, the GST mop-up was ₹1.74 lakh crore.
V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, offered insights into the Nifty’s movement. “After breaking the 24,500-25,000 range, Nifty has moved to the new range of 25,200-25,800. Positive news about a possible trade deal between India and the US can help break the upper limit of the range, but it would be difficult to sustain the Nifty at higher levels for long. A surprise element is the resilience of the US economy and corporate earnings, which in turn is imparting resilience to the US market, despite the tariffs,” he noted.
In broader Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, and Shanghai’s SSE Composite index were trading lower in early hours, while Hong Kong’s Hang Seng index showed gains. The US markets concluded Tuesday’s session on a mixed note.
Globally, the Brent crude oil benchmark was trading marginally up by 0.06% at $67.15 a barrel.
According to exchange data, Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,970.14 crore on Tuesday, indicating a cautious stance despite the domestic rally.
In the previous trading session, the Sensex had risen by 90.83 points or 0.11% to settle at 83,697.29, and the Nifty had gained 24.75 points or 0.10% to close at 25,541.80.
