Indian Domestic equity benchmarks managed to end higher on Friday, July 5, 2025, despite a highly volatile session, as investors adopted a cautious stance ahead of the July 9 deadline for the possible imposition of U.S. tariffs, a lingering legacy of policies initiated during former President Donald Trump’s administration. The anticipation of trade-related developments, coupled with global macroeconomic uncertainty, kept sentiment in check through the day.
The BSE Sensex closed higher by 193.42 points, or 0.23%, at 83,432.89, while the NSE Nifty-50 added 55.70 points, or 0.22%, to settle at 25,461.
Broader Market Performance
In the broader market:
- The Nifty Midcap 100 ended almost flat, with a marginal downward bias.
- The Nifty Smallcap 100 eked out a modest gain of 0.03%, reflecting selective investor interest in niche counters.
Sectoral Trends: Oil & Gas Outshines
Sectorally, the performance was mostly positive:
- Nifty Oil & Gas emerged as the top-performing sector, climbing 1.05%, buoyed by strong gains in stocks like Bharat Petroleum, Indian Oil, Mahanagar Gas, IGL, and Hindustan Petroleum, amid optimism over crude price stability and demand recovery.
- Other key sectors that witnessed healthy buying included Realty, Pharma, Information Technology, Banking, Media, and Consumer Durables, all gaining up to 1%.
- Only Nifty Auto and Nifty Metal ended in the red, weighed down by selective profit booking.
Stock-Specific Movers
Among the Sensex’s 30 constituents, 20 stocks closed in the green. Key gainers included:
- Bajaj Finance, Infosys, Hindustan Unilever, ICICI Bank, HCL Tech, Ultratech Cement, and Bajaj Finserv.
- On the flip side, underperformers included Tata Steel, Tech Mahindra, Trent, Maruti Suzuki, and Adani Ports.
Volatility Eases
Market volatility, as measured by the India VIX, declined slightly by 0.57%, closing at 12.32, indicating a mild cooling of investor nervousness despite upcoming macro events.
Outlook
Traders and institutional participants are closely monitoring global developments, including U.S. trade policy moves and upcoming inflation data, which could shape the near-term direction of the markets. While domestic fundamentals remain relatively strong, geopolitical uncertainties and foreign fund flows may continue to drive day-to-day fluctuations.