BIZ DESK
The domestic equity markets ended in the red on Thursday, July 3, 2025, after failing to sustain early gains amid high volatility on the weekly F&O expiry day. Despite opening on a positive note supported by mixed global cues and firm Asian markets, benchmark indices slipped into negative territory during the final hour of trade, weighed down by profit booking in banking and IT stocks.
The BSE Sensex fell 170.12 points, or 0.20%, to close at 83,239.12, while the NSE Nifty-50 slipped 48.30 points, or 0.19%, to settle at 25,405.45.
Intraday, the indices had climbed over 250 points on hopes of continued foreign inflows and firm crude oil prices. However, selling pressure emerged late in the session as traders booked profits ahead of the extended weekend and awaited key U.S. economic data due tonight, including the ISM Services PMI and initial jobless claims.
Among the sectoral indices, Nifty Bank, IT, and FMCG witnessed selling pressure, while realty, media, and auto managed marginal gains. Stocks like HDFC Bank, Infosys, and Reliance were among the top laggards on the Sensex.
The broader market painted a mixed picture. The BSE MidCap index ended almost flat with a negative bias, while the BSE SmallCap index outperformed the benchmarks with a gain of 0.48%, driven by strong buying in select PSU and industrial stocks.
On the global front, Asian stocks were mostly higher on hopes of a possible interest rate cut by the U.S. Federal Reserve later this year. However, caution ahead of the key U.S. data releases and concerns over China’s economic recovery kept gains in check.
The market breadth on the BSE was positive, with more advancing stocks than declining ones. Volatility index India VIX rose slightly by 1.3%, indicating rising caution among traders.
Analysts expect the market to remain range-bound in the short term, with stock-specific action likely to dominate, especially in the mid- and small-cap segments.
Sector-Wise Market Report – July 4, 2025
🏦 Banking
- The Bank Nifty index closed in the red, dragged by frontline private banks like HDFC Bank and ICICI Bank.
- Profit booking was seen after a strong rally earlier in the week.
- PSU banks showed resilience with mild gains.
💻 Information Technology (IT)
- The IT sector underperformed as heavyweight stocks like Infosys and TCS witnessed selling pressure.
- Weak global tech cues and concerns over U.S. tech sector valuations impacted sentiment.
🛒 FMCG
- FMCG stocks remained weak due to valuation concerns and rising input cost commentary from select companies.
- HUL and Nestle saw modest declines.
🚗 Automobile
- Auto stocks held steady to slightly positive.
- Strong monthly sales data from select two-wheeler and commercial vehicle companies supported the sector.
🏘️ Realty
- The real estate sector was among the top gainers, supported by continued investor interest in residential and commercial projects.
- Godrej Properties and DLF performed well.
🎥 Media
- The media pack gained, led by a rebound in broadcasting and entertainment stocks.
- Zee Entertainment and Sun TV posted moderate gains.
⚙️ Capital Goods & Industrials
- Stocks in the capital goods and industrials space remained firm on strong order pipeline expectations.
- L&T and Siemens were among the notable performers.
🏭 Metals
- The metal sector was range-bound.
- Mixed trends in global commodity prices and subdued demand outlook capped gains.
💊 Pharma
- Pharma stocks were mixed.
- Select stocks gained on news of regulatory approvals, while others were under pressure due to weak Q1 outlook.