Gift Nifty at 23,975 indicates a cautious beginning for Indian stocks.
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Markets are likely to open on flat note on July 1, despite positive global cues. Analysts expect the consolidation phase to continue amid sectoral shocks and rotations. Stocks from Information Technology will come under renewed pressure after KPIT Technologies said it expects the financial performance for Q1 FY27 to be lower-than-expected previously, owing to a sudden drop in revenues over the last few weeks. It warned of an expected decline of about one per cent in USD-reported revenues for Q1 FY27 as compared to Q1 FY26, primarily due to “sudden actions by some European OEMs triggered by their recent profit warnings and adverse business outlook”Gift Nifty at 23,975 indicates a cautious beginning for Indian stocks.Ponmudi R, CEO of Enrich Money, said Supportive global cues, including gains on Wall Street overnight and a positive trend across Asian equities in early trade, are likely to underpin sentiment at the open.However, investors are expected to remain cautious at higher levels as uncertainty continues to surround the ongoing U.S.–Iran negotiations in Doha. Market participants are closely tracking the second round of talks involving U.S. envoys Steve Witkoff and Jared Kushner, while Iran’s continued insistence on full control over the Strait of Hormuz highlights unresolved differences over the proposed ceasefire framework. As a result, headline-driven volatility is likely to persist until greater clarity emerges on the diplomatic front.Crude oil prices remain stable, trading in the $69–70 per barrel range, providing a supportive backdrop for India’s macroeconomic outlook. However, continued selling by foreign portfolio investors has tempered market optimism and remains a key factor limiting any meaningful recovery in domestic equities. Meanwhile, the India Meteorological Department on Tuesday predicted “below-normal” monsoon rainfall in July, quantitatively 94 per cent of the long-period average of 280.4 mm. However, the IMD indicated that a potential positive Indian Ocean Dipole (IOD) in September might marginally mitigate the adverse impacts of a strong El Nino.According to analysts, this will stoke inflation and impact larger economy. While the direct fall out will be visible in agriculture, fertilisers, FMCG and automobile, slowdown in economy will have wider impact across sectors.Hitesh Rathi, Technical Analyst -Equity & Derivatives, Angel One, said While frontline indices continue to exhibit a lack of directional momentum, broader markets once again witnessed some encouraging moves. “The relative outperformance of the broader market was evident, with Midcap and Smallcap indices closing in positive territory while frontline indices ended lower. Participants should continue to adopt a stock-specific approach, with selective pockets of strength emerging in sectors such as Pharma, NBFCs, and Realty,” he added.Equities across Asia Pacific region are up in early deal, tracking overnight US counterparts.Published on July 1, 2026
