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Sensex and Nifty Climb After Weak U.S. Jobs and HCLTech $1.14bn Deal

Weaker U.S. payrolls cut the odds of an immediate Fed rate hike and encouraged investors to buy beaten-down IT stocks while markets await Fed minutes and the June-quarter earnings kickoff.

Overview

  • India's benchmarks closed higher on July 3, with the BSE Sensex at 77,763.91 and the NSE Nifty at 24,270.85 after a volatile trading session driven by sector-specific buying.
  • Softer U.S. payrolls and downward revisions to prior months' jobs numbers reduced expectations of a near-term Federal Reserve rate increase, which lifted global risk appetite and supported equity flows.
  • The domestic rally was led by information-technology shares, led by HCLTech's roughly 5.8% jump after announcing a $1.14 billion deal that sparked strong buying across the IT index.
  • Easing crude oil risk tied to technical U.S.–Iran progress and improved tanker transits helped relieve inflation and trade-balance concerns for India, and the rupee strengthened as the dollar retreated.
  • Market direction now hinges on upcoming Fed minutes, Tata Consultancy Services' July 9 results that will set the tone for IT earnings, monsoon progress, and foreign institutional investor flows.