Thanks.

Eventhough table1 is very large, table2 would have less number of records around 3000 rows so i hope batch update is not required.

Also i am planning to add "date" condition to where clause from table1 to filter the number of records from table1 eventhough logically ID from table2 does not come below the date condition. Will that where clause help? "date" field has an non-clustered index in the table.