Sensex Surges Over 500 Points as Banking Stocks Lead Market Rally

Brief By Newsbrief / 10:44 AM on 07 Jul 2026

Indian equity markets witnessed a strong rally on Monday, the first trading session of the week, with benchmark indices climbing sharply amid positive domestic and global cues. The BSE Sensex surged more than 500 points, while the NSE Nifty gained around 150 points during early trade.

The Sensex opened at 77,940 against its previous close of 77,763 and extended gains to touch 78,289, rising over 526 points. Similarly, the Nifty opened at 24,306 compared to Friday's close of 24,270 and climbed to around 24,428, reflecting broad-based buying across sectors.

Banking stocks emerged as the biggest contributors to the rally. HDFC Bank gained nearly 2.7%, while ICICI Bank, Axis Bank and Kotak Mahindra Bank also traded firmly. Heavyweights such as Reliance Industries, Mahindra & Mahindra, Maruti Suzuki and Bharat Electronics added further momentum to the market.

In the broader market, mid-cap stocks including Dixon Technologies, Godrej Properties and Muthoot Finance registered healthy gains. Among small-cap stocks, Welspun Corp, Radico Khaitan and Manappuram Finance were among the top performers, rising between 4% and 5.5%.

Several factors supported the market's sharp uptrend. A sustained decline in global crude oil prices improved investor sentiment by easing inflation concerns. Mixed trends across Asian markets also provided support, with Hong Kong's Hang Seng and Britain's FTSE 100 trading in positive territory despite weakness in Japan and South Korea.

Another major trigger was the strong provisional quarterly business updates released by leading banks, including HDFC Bank, Axis Bank and Kotak Mahindra Bank, for the April-June quarter. Positive expectations surrounding the banking sector, coupled with a strong opening in Gift Nifty, encouraged investors to increase buying, resulting in a broad-based rally across the Indian stock market.