India’s IT sector has experienced its weakest performance for the first half of the year in over 20 years, with the Nifty IT index dropping 31% from January to June due to concerns regarding AI-driven pricing pressure and declining demand.
In another development, the US and Iran completed another round of indirect discussions in Doha as the conflict in West Asia enters its fifth month. Both parties agreed to continue negotiations following the funeral of Iran’s former Supreme Leader.
Today’s edition also highlights: Japan’s Prime Minister Sanae Takaichi’s visit to India, which covers topics such as AI, semiconductors, energy, and Indo-Pacific security.
The Day Ahead: Eight banks respond to their Q1 business updates
Shares of eight banks—Canara Bank, Karnataka Bank, South Indian Bank, Punjab & Sind Bank, Indian Bank, Jammu & Kashmir Bank, Dhanlaxmi Bank, and Tamilnad Mercantile Bank—are in focus on Thursday, July 2, as they issued their provisional business updates for the quarter ended June 30, 2026, after market hours on Wednesday.
US-Iran talks wrap up in Doha, to resume after funeral; Strait of Hormuz and frozen funds on the agenda
The recent round of indirect negotiations between the US and Iran concluded in Doha on Wednesday, July 1, with mediators noting positive progress and a plan to resume after the funeral processions of Iran’s former Supreme Leader. Discussions focused on restoring maritime traffic through the Strait of Hormuz and unfreezing Iran’s overseas assets.
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Nifty IT records worst first half of the year since 2001; Analysts indicate further risks
The Nifty IT index saw a 31% decline from January to June this year. The only worse performance in a similar period occurred in 2001, when the index fell by 44%. Currently, the index stands at a three-year low.
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Apple seeks to procure Chinese-made memory chips by lobbying the US
Apple Inc. is negotiating to acquire chips from two Chinese semiconductor manufacturers on a Pentagon blacklist to mitigate the effects of a global memory shortage, which has led the company to increase prices across its product offerings.
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Gold and silver prices dip ahead of crucial US payroll data
Gold and silver prices experienced a slight decrease on Thursday (July 2) but remained close to a one-week high as investors remained cautious ahead of significant US employment data that could impact the Federal Reserve’s interest rate outlook.
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Takaichi visits India: Energy, AI, semiconductor, and Indo-Pacific security on the agenda for India-Japan summit
Japanese Prime Minister Sanae Takaichi arrived in New Delhi on Wednesday (July 1) evening for a three-day visit, focusing on economic security, energy security, artificial intelligence (AI), semiconductors, resilient supply chains, and stability in the Indo-Pacific during her discussions with Prime Minister Narendra Modi.
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Rupee appreciates 32 paise to 94.93 against the dollar, but traders foresee upcoming pressures
The Indian rupee opened stronger on Thursday (July 2) at 94.93 against the US dollar, up from Wednesday’s (July 1) close of 95.25/$, reflecting a 32 paise recovery in early trading.
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Mitessh Thakkar recommends DLF and Ashok Leyland as buys; suggests selling Coforge
Mitessh Thakkar, President of Retail Research at Bonanza Portfolio, has advised purchasing DLF and Ashok Leyland for short-term gains while recommending a sell for Coforge.
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Wipro ADRs drop 17% as AI pricing pressures and weak outlook affect sentiment
Wipro ADRs fell over 13% on Wednesday, further extending recent losses as investor sentiment remained fragile due to concerns regarding the company’s earnings outlook and the increasing impact of artificial intelligence on traditional IT services.
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FirstCry to launch shares in ₹1,000 crore Swara Baby IPO; DRHP details available
Swara Baby, an Indian contract manufacturer of baby diapers, adult diapers, and feminine hygiene products, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
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India extends UAE gold import quota authorisations until September 30
The government has prolonged the validity of tariff rate quota (TRQ) authorisations for gold imports under the India-UAE trade pact for FY 2025-26 until September 30, allowing importers extra time to utilize their licenses.
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Red alert for Delhi-NCR; capital experiences light to moderate rain
The India Meteorological Department (IMD) has issued a red alert for heavy rainfall in Delhi-NCR on Thursday (July 2). It was forecasted the previous day that the monsoon would arrive within two days in Delhi.
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