Post Market Analysis | 07 July, 2026

Asian markets were weak right from the morning, and that pressure was visible in our market from the opening bell. Midcaps and Smallcaps started the day under selling pressure, while Nifty and Bank Nifty managed to hold up for some time. The benchmark indices even attempted to move higher during the first half, but the weakness in the broader market gradually spread to the large-cap stocks as well. By the second half, sellers had taken control across the market. The last hour saw aggressive selling, pulling Nifty, Bank Nifty and Sensex towards the day's low. That shift from broader market weakness to index weakness was the biggest takeaway from today's session. Market breadth remained weak, with declining stocks comfortably outnumbering advancing stocks. This shows the selling was broad-based rather than limited to a few heavyweight stocks. IT was the only major sector that stood out, gaining more than 2% after the recent correction. Digital and Internet stocks also remained strong. On the other hand, Defence, Capital Market, Realty and Metal stocks witnessed profit booking and ended among the top losers. One positive was the rupee, which strengthened by around 44 paise and closed near 94.96. India's 10-year bond yield also eased, while Brent crude remained stable around $72.8. From a market structure point of view: • Weak Asian markets set the negative tone in the morning • Selling started in Midcaps and Smallcaps first • That weakness gradually spread to Nifty, Bank Nifty and Sensex in the second half • Heavy selling in the last hour pushed the indices near the day's low • Market breadth remained clearly negative Today's session reminds us that the broader market often gives the first warning. Midcaps and Smallcaps weakened early, and later the benchmark indices followed. That's something worth keeping an eye on over the next few sessions.