IT Weakness Drags Nifty Lower; Defence Emerges as Top Performer - Paper by Pocketful

Jun 30, 2026

Ola Electric Mobility (+8.37%): Shares surged after the Government of Delhi approved a new EV policy offering tax and registration exemptions for electric cars priced below ₹30 lakh, boosting sentiment across EV-focused companies.
Transformers and Rectifiers Limited (+5.57%): Shares gained after the company secured an ultra-mega order worth over ₹1,000 crore from Power Grid Corporation of India Limited for manufacturing transformers and executing associated works, strengthening its order book and growth outlook.
SJVN Limited (+1.89%): Shares advanced after the company signed power purchase agreements with Gujarat Urja Vikas Nigam Limited for electricity supply from its upcoming 66 MW Dhaulasidh, 210 MW Luhri Stage-I, and 382 MW Sunni Dam hydroelectric projects in Himachal Pradesh, strengthening long-term revenue visibility.
Afcons Infrastructure Limited (-1.14%): Shares declined despite the board recommending a final dividend of ₹2 per share for FY26 and fixing July 23 as the record date, as investors remained cautious amid broader market sentiment and profit booking.

Nifty India Defence (+1.37%): The index emerged as the top-performing sector of the day with 17 gainers and 1 loser. Strong order inflows, rising defence exports, and continued government focus on indigenous manufacturing boosted investor sentiment across the sector.
Nifty Realty (+1.31%): The index rebounded after declining in the previous session, led by gains in Phoenix Mills, Godrej Properties, and Lodha Developers. Improved buying interest and optimism around the domestic real estate market supported investor sentiment across the sector.
Nifty IT (-2.73%): The index tumbled as persistent US rate concerns and AI-led disruption fears dampened the outlook for discretionary technology spending, dragging major IT stocks including Infosys, TCS & HCLTech.
Nifty Media (-0.77%): The index ended lower despite 6 stocks advancing against 4 declining, as losses in heavyweight constituents outweighed broader buying interest and dragged the sector into negative territory.

Technical Level: Nifty opened with a minor gap-up and witnessed a sharp decline at the start of the session, creating immediate resistance near 24,030. The index then traded in a narrow range throughout the day before slipping further towards the close, forming support around 23,830 and ending slightly above that level, indicating continued cautious sentiment.
Advance-Decline Ratio: Market breadth remained positive, with 1,916 advances against 1,383 declines, indicating broader buying interest despite volatility in frontline indices.
The Big Picture: U.S. small-cap stocks posted their strongest first-half performance in 35 years, driven by AI-led infrastructure spending, improving earnings expectations, and valuation catch-up, boosting optimism for broader market participation beyond mega-cap technology.
FII/DII Activity (June 29, 2026): DIIs remained net buyers at ₹2,801 crore, while FIIs were net sellers worth ₹1,350 crore, providing domestic support amid foreign outflows.

IPO Corner: Aastha Sprintex IPO closes for subscription tomorrow (July 1), with investors closely tracking subscription levels and listing prospects.
Macro: Japan Consumer Confidence (Jun) & Euro Inflation Rate YoY Flash (Jun) data scheduled for release tomorrow.

Meaning: Strong belief or confidence in a decision, idea, or investment.

Market Example: Strong institutional buying reflected investors’ conviction in the long-term growth outlook despite market volatility.

Pocketful Paper