Markets Rally

• Indian equity markets rallied at the start of the week, with the Sensex opening up approximately 470 points (0.62%) to 76,530.15 and the Nifty rising to 23,825.25. • The positive momentum was signaled by the GIFT Nifty, which traded at 23,931, marking a 124-point increase. • This recovery follows a volatile week of selling pressure and is driven by improved investor sentiment after the US and Iran paused military strikes.

• TS Lombard reports that South Korea's tech rally may slow down due to cooling memory-chip pricing and increased competition from expanding Chinese capacity. • While the research firm remains positive on overall AI capital spending, it has shifted to a neutral view on South Korean equities. • The firm identifies Taiwan and Japan as more durable markets for investors seeking exposure to the global AI buildout.

• Asian stock markets rose, led by a 1.6% climb in the MSCI Asia Pacific equities gauge, as traders reduced expectations for Federal Reserve interest-rate hikes. • The rally was driven by cooler-than-expected US inflation data and renewed momentum in the artificial intelligence trade, specifically boosting technology shares. • South Korea’s Kospi index surged nearly 6%, reclaiming its position as the world’s best-performing major stock benchmark for the year, with SK Hynix Inc. among the key gainers.

• Global markets are experiencing volatility characterized by a rally in oil prices and a significant selloff in chip stocks. • Investors are shifting their focus toward the upcoming earnings season, which is expected to either restore market confidence or trigger further sharp declines. • These corporate results are critical as they will shape broader economic expectations regarding U.S. interest rates and inflation outlooks.

• Asian stock markets rose on Thursday, driven primarily by a recovery in semiconductor shares following a period of heavy selling. • Oil prices surged as hostilities resumed in the Gulf region, sparking renewed concerns over global inflation and negatively impacting bond markets. • The rally in chip stocks provided a necessary boost to regional indices, though overall gains were limited by the volatility in energy markets.

• Investors are shifting their focus toward "old-economy" stocks as doubts grow regarding the long-term sustainability of the recent AI-driven market rally. • The trend was highlighted in the latest Markets Pulse survey, which indicates a strategic pivot away from high-growth tech sectors. • This shift matters as it suggests a broader market rotation, where traders seek stability and value in traditional industries to hedge against potential AI volatility.

• On July 3, 2026, the Indian stock market saw the Sensex climb 300 points and the Nifty 50 rise above 24,200, supported by a sustained rally in IT stocks. • Simultaneously, Bitcoin rose 2.3% to trade near $61,500, contributing to a global cryptocurrency market capitalization of approximately $2.13 trillion. • The crypto rebound was triggered by weaker-than-expected U.S. payroll growth in June, which added only 57,000 jobs against a forecast of 110,000.