Benchmark indices Sensex and Nifty saw an early surge on Wednesday (July 2, 2025), driven by optimism over a potential trade deal with the United States and strong buying interest in major IT stocks.

The BSE Sensex advanced by 236.56 points to reach 83,933.85 during early trading, while the NSE Nifty climbed 66.3 points to 25,608.10. Leading the gains among Sensex constituents were Infosys, Tech Mahindra, Tata Steel, Sun Pharma, Tata Consultancy Services, and Tata Motors. On the other hand, Bajaj Finserv, Asian Paints, Bharat Electronics, and Bajaj Finance were among the top losers.

India’s manufacturing sector showed robust performance in June, with the HSBC India Manufacturing Purchasing Managers’ Index (PMI) rising to a 14-month peak of 58.4, up from 57.6 in May. The improvement was fueled by stronger output, increased new orders, and record growth in employment, according to a monthly survey released Tuesday.

"The market is opening on a strong note, thanks to favorable domestic data such as a sharp rise in manufacturing PMI, a reduced trade deficit, and optimism around an India-US trade pact," said Vikas Jain, Head of Research at Reliance Securities.

Meanwhile, GST collections in June totaled over ₹1.84 lakh crore, reflecting a 6.2% year-on-year increase, though the figure dipped below the ₹2 lakh crore collected in the previous two months.

V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, noted, "After breaking past the 24,500–25,000 range, the Nifty has now entered the 25,200–25,800 range. Positive developments around an India-US trade deal could help breach the upper end, though sustaining those levels may be challenging. What’s surprising is the continued strength of the US economy and corporate earnings, which are helping buoy the US market despite tariff pressures."

Across Asia, markets were mixed. South Korea’s Kospi, Japan’s Nikkei 225, and China’s Shanghai Composite traded in the red, while Hong Kong’s Hang Seng edged higher.

On Wall Street, US stocks ended Tuesday on a mixed note. Brent crude, the global oil benchmark, edged up slightly by 0.06% to $67.15 a barrel.

Foreign Institutional Investors (FIIs) sold equities worth ₹1,970.14 crore on Tuesday, according to exchange data.

In Tuesday's session, the Sensex had closed 90.83 points higher at 83,697.29, and the Nifty rose 24.75 points to end at 25,541.80.