Markets opened on a cautious note on Wednesday, with the Nifty 50 edging up 50.25 points (0.21 per cent) to 23,916 and the Sensex gaining 190.19 points (0.25 per cent) to 76,668.86 as of 9.20 AM, after both indices closed in the red in the previous session. The Nifty had ended Tuesday at 23,865.75, while the Sensex closed at 76,478.67. Both indices opened higher — Nifty at 23,897.65 and Sensex at 76,545.21 — before extending marginal gains in early trade.Mahindra & Mahindra led the Nifty gainers, rising 2.02 per cent to ₹3,130.90, followed closely by Titan at ₹4,491.30, up 1.98 per cent. Zomato's parent Eternal gained 1.30 per cent to ₹268.05, while Sun Pharmaceutical Industries advanced 1.24 per cent to ₹1,885.60. Infosys bucked the broader IT weakness from the previous session, rising 1.19 per cent to ₹1,012.30.On the losing side, Bajaj Finserv was the top laggard, falling 1.48 per cent to ₹1,753.80. HDFC Life Insurance slipped 0.81 per cent to ₹571.20, while JSW Steel declined 0.62 per cent to ₹1,218.80. Coal India dropped 0.58 per cent to ₹436.50, and IndiGo fell 0.55 per cent to ₹5,339.The previous session had ended on a weak note, with the Nifty declining 80.50 points (0.34 per cent) to 23,865.75. As Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted: ..."the IT index was the biggest laggard, falling 2.5 per cent" while ..."Realty and Defence outperformed, gaining nearly 1.5 per cent each."Tuesday's broader pressure came from a 4.8 per cent decline in Eicher Motors following Delhi's revised electric vehicle policy and weakness in export-oriented IT stocks ahead of US economic data.On the institutional flow front, Foreign Institutional Investors (FIIs) remained net sellers on June 30, offloading equities worth ₹2,556 crore. Domestic Institutional Investors (DIIs), however, extended their buying streak to a sixth consecutive session, purchasing equities worth ₹6,842 crore, helping absorb foreign selling pressure.Global cues provided a supportive backdrop. Wall Street closed its strongest quarter since 2020 on a firm note, with the Dow Jones touching a record 52,319, Nasdaq rising 1.5 per cent on semiconductor strength, and the S&P 500 gaining 0.8 per cent. Asian markets were largely positive, with Japan's Nikkei climbing over 1.6 per cent to fresh record highs. Hong Kong markets remained closed for a public holiday.Brent crude softened toward $73 per barrel as shipping through the Strait of Hormuz normalised, though US-Iran nuclear talks in Doha continued to inject uncertainty. Rajesh Palviya, Head of Research at Axis Direct, flagged that ..."optimism surrounding renewed US-Iran talks in Doha underpinned the positive sentiment," though outcomes remain fluid.A key concern flagged by strategists is the monsoon deficit. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, warned: ..."June has ended with 40 per cent rain deficit and for July, the IMD has predicted below normal rainfall," adding that ..."market has not yet discounted this negative trend." He advised investors to consider ..."churning of portfolios in favour of monsoon-proof sectors like health care, pharmaceuticals, power and select fairly valued defence stocks."Technically, analysts remain cautious. Gaurav Udani, Founder of ThinCredBlu Securities, noted that ..."23,700–23,800 acting as support and 24,000–24,100 as the key resistance zone to watch." Ponmudi R, CEO of Enrich Money, added that ..."a sustained breakout above this level would improve market sentiment and could pave the way for a move towards the 24,200 level."Bank Nifty closed at 57,542.90 on Tuesday, down 184.45 points (0.32 per cent), with the 57,000–57,200 zone as immediate support and 58,000–58,200 as resistance. India VIX stood at 13.60, signalling contained near-term volatility.Published on July 1, 2026