Markets extended gains for a second straight session on Thursday, with a dramatic rebound in technology stocks stealing the show after four consecutive days of sharp selling, even as global tech indices faced headwinds from AI-driven jitters and chip stock selloffs across Asia.The Nifty 50 closed at 24,175.70, up 0.71 per cent, while the Sensex gained 0.75 per cent to settle at 77,502. The Nifty IT index surged 4.64 per cent — its biggest single-session recovery in recent weeks — driven by short covering and value buying ahead of first-quarter earnings. The India VIX dropped over 7 per cent to 12.29, signalling easing near-term anxiety."After a brutal four-day slide, the IT sector came back," noted Sarvam Goel, Founder of Pocketful, adding that "...as global investors rotate out of expensive AI and semiconductor stocks, Indian IT services seem to be catching some of that diverted capital as a comparatively lower valued alternative."Broader markets outperformed benchmarks. The Nifty Midcap 100 rose 0.48 per cent and the Nifty Smallcap 100 advanced 1.25 per cent, with advances outnumbering declines roughly 2:1. Auto and realty also posted healthy gains, supported partly by strong June passenger vehicle sales, which rose 24 per cent year-on-year. PSU Bank was the session's notable laggard, weighed down by selective profit-booking. Nifty Bank ended nearly flat.Macro tailwinds provided additional support. The reopening of the Strait of Hormuz eased energy supply concerns, pulling Brent crude below $71 per barrel. Domestically, June GST collections climbed 13.9 per cent year-on-year to ₹1.95 lakh crore, while UPI transaction volumes and values grew 23 per cent and 20 per cent, respectively — indicators pointing to sustained economic momentum. Japan announced over $10 billion in fresh investments in India across AI, defence technology, and energy security during the India-Japan Annual Summit, adding to positive sentiment.The bond market also caught a bid, with the benchmark 10-year government bond yield easing to around 6.7 per cent, as expectations built around India's potential inclusion in the Bloomberg Global Aggregate Bond Index. Foreign investors poured nearly $5.3 billion into Indian bonds during June.On the currency front, the rupee weakened further, closing near 95.36–95.39 to the dollar — down around 0.18 per cent — pressured by a firm Dollar Index above 101 and FII-related outflows. Gold on MCX recovered from a weak open near ₹1,43,900 toward the ₹1,45,000 zone, while COMEX Gold rebounded to around $4,065 after finding support near $4,030. Bullion traders are now watching the rupee's direction closely alongside the upcoming US Non-Farm Payrolls and Unemployment data.Looking ahead, market direction next week will hinge on US jobs data — a key trigger for dollar and emerging market currency moves — along with Q1FY27 earnings season kickoff and any further developments from the India-Japan Summit. Ajit Mishra of Religare Broking noted that "...a sustained move above this level could pave the way for an extension towards the 24,450–24,600 zone," while flagging 24,000 as immediate support. Analysts broadly maintain a buy-on-dips stance, though they caution that one strong IT session does not yet signal a structural sector reversal.Published on July 2, 2026