The Indian stock market closed with marginal losses on Friday, July 4, 2025, amid cautious consolidation. Regulatory action by SEBI triggered sharp declines in specific stocks, while broader market indices remained resilient. Global cues and sector-specific news also shaped investor sentiment.
Table of Contents
- Key Market Indices Performance – Nifty & Sensex Today
- Sectoral Performance Overview
- Top Stock Market News – Major Movers and Corporate Announcements
- FII and DII Activity – Institutional Money Flow
- IPO Market Update – Listings, Subscriptions, and Market Buzz
- Top Gainers and Losers – Best and Worst Performing Stocks
- Economic and Global Factors Impacting Markets
- What to Watch Tomorrow – Events, Earnings, and Market Levels
- Final Takeaway – Summary of the Day’s Market Action
Benchmark indices closed lower following profit-taking and cautious positioning:
- Sensex: Closed up 193.42 points (0.23%) at 83,432.89. It recovered from earlier declines, having hit an intraday high of 83,477.86 (while it may have touched 83,850.09 intraday earlier in the week or during specific reports, the high for July 4 was 83,477.86).
- Nifty: Closed up 55.70 points (0.22%) at 25,461.00. It also recovered from declines earlier in the day, after testing an intraday high of 25,470.25.
Broader Market Performance:
- Overall Market Sentiment: Mixed, with large-cap stocks facing some selling pressure while mid and small-cap indices showed resilience.
- Nifty & Sensex: Both major benchmarks were consolidating, with Nifty trading below the 25,500 resistance but holding above 25,300 support. Both Sensex and Nifty ended the day marginally in the red.
Top Gaining Sectors:
- Auto Sector:
- Nifty Auto closed with a marginal dip of -0.52%, though some individual auto stocks like Bosch Ltd (+3.58%) and Balkrishna Industries (+1.8%) registered gains.
- The sector overall showed resilience despite the slight decline in the Nifty Auto index.
- Consumer Durables Sector:
- Nifty Consumer Durables saw marginal gains of +0.07%.
- Key contributors included Crompton (+0.99%), VGUARD (+0.9%), and Havells (+0.47%).
- Pharma Sector:
- Nifty Pharma was up +0.26%.
- Notable performers included Mankind Pharma, Aurobindo Pharma, Laurus Labs, and Glenmark Pharma, indicating a generally positive trend.
- Healthcare Sector:
- Nifty Healthcare Index gained +0.49%.
- Strong performance from stocks like Mankind Pharma (+3.34%), Aurobindo Pharma (+2.67%), and Laurus Labs (+2.29%) contributed significantly.
- IT Sector:
- Nifty IT ended with a gain of +0.55%.
- The sector showed positive momentum, providing support to the broader market amidst consolidation.
- Oil & Gas Sector:
- Nifty Oil & Gas was up +0.46%.
- BPCL, Mahanagar Gas, and IOCL were among the top performers within the sector.
Top Losing Sectors:
- Metal Sector:
- Nifty Metal saw significant declines, closing down -0.88%.
- Major metal stocks like Tata Steel, SAIL, JSW Steel, and Jindal Steel & Power all experienced declines.
- Realty Sector:
- Initially, Nifty Realty jumped over 1% in early trade, led by strong performances from Godrej Properties, Phoenix Mills, and newly listed Raymond Realty.
- However, it was mentioned as one of the sectors that saw "significant declines" in the provided summary, suggesting profit booking or a reversal later in the day. The index remained negative on a monthly and annual basis.
- Power Sector:
- While specific Nifty Power index performance for July 4, 2025, wasn't detailed, the sector was noted to have seen "significant declines."
Mid and Small-Cap Performance:
- BSE Midcap: Closed with a gain of +0.4% (though some sources indicate a slight dip of 0.069%).
- BSE Smallcap: Ended with a gain of +0.3% (or +0.057% by some reports).
- Nifty Midcap 100: Was flat with marginal gains, some reports indicate a dip of -0.19%.
- Nifty Smallcap 100: Was up +0.26% (some reports indicate a dip of -0.17%).
- Overall Trend: Broader market indices (mid and small-caps) generally outperformed large-cap stocks, indicating a shift in investor interest towards these segments. This was supported by 52 stocks scaling new 52-week highs, many of which were in the mid and small-cap segments, suggesting stock-specific action and sector rotation.
Key Domestic Developments:
- SEBI Action: SEBI barred Jane Street Group, freezing ₹4,840 crore; impacted BSE (-7.34%), Nuvama (-7-10%), Angel One (-7.32%).
- Bajaj Finance: Strong Q1 updates; new loans up 23%, AUM up 25% YoY.
- Bank of Baroda: Global advances up 12.63% YoY.
- IEX: Power volumes grew 15% YoY.
- UCO Bank: Business grew 13.7% YoY.
- ONGC & Mitsui: Partnership for ethane carriers.
- NBCC: ₹60 crore new orders.
- Reliance Retail: Invested in UK’s FaceGym.
- Trent: Fell 13.58% after downgrade.
July 3, 2025 Flows:
- FIIs: Net sellers of ₹1,481.19 crore.
- DIIs: Net buyers of ₹1,333.06 crore.
Derivatives:
- FIIs sold index futures worth ₹2,443.59 crore.
- Bought index options worth ₹65,491.20 crore.
Institutional Holding Updates:
- FII stake in Apollo Micro Systems jumped to 6.58%.
- FII and DII increased stakes in Marathon Nextgen Realty post-QIP.
The Indian primary market continues to be a hotbed of activity, with multiple IPOs in various stages, reflecting strong investor appetite.
Ongoing IPOs (as of July 4, 2025):
- Meta Infotech (SME IPO):
- Issue Size: ₹80.18 crore.
- Subscription Status (Day 1, July 4): Subscribed 1.34 times overall. QIB portion subscribed 2.13 times, NII 0.88 times, and Retail 1.14 times.
- Details: This cybersecurity solutions provider's IPO opened on July 4 and closes on July 8, 2025. It's listed on the BSE SME platform with a price band of ₹153 to ₹161 per share. The issue comprises a fresh issue and an offer for sale.
- Crizac Limited (Mainboard IPO):
- Issue Size: ₹860 crore.
- Subscription Status (Day 3, July 4): Subscribed 54.02 times overall by 3:33 pm on the final day. QIB portion 0.21 times, NII 12.95 times, and Retail 3.76 times.
- Details: This B2B international education platform's IPO opened on July 2 and closed on July 4, 2025. The entire issue is an Offer for Sale (OFS) priced at ₹233-₹245 per share. Grey market premium (GMP) was indicating potential gains of around 9%. Listing is expected on July 9, 2025, on BSE and NSE.
- Cryogenic OGS (SME IPO):
- Issue Size: ₹17.77 crore.
- Subscription Status (Day 2, July 4): Subscribed 72.99 times overall by 3:08 pm. QIBs at 3.71 times, NII at 23.81 times, and RIIs at 71.49 times. This IPO opened on July 3 and closes on July 7, 2025.
- White Force (SME IPO):
- Issue Size: ₹24.25 crore.
- Details: Opened on July 3 and closes on July 7, 2025.
SME Listings on July 4, 2025:
- Neetu Yoshi:
- Listing Price: Listed at ₹105 per share on BSE SME.
- Premium: +40% over its IPO price of ₹75.
- Details: The listing surpassed grey market expectations, reflecting strong investor confidence. The IPO was oversubscribed 119.19 times, raising ₹77.04 crore.
- Adcounty Media India:
- Listing Price: Listed at ₹130 per share on BSE SME.
- Premium: +53% over its IPO price of ₹85.
- Details: The digital marketing company's shares made a robust debut, aligning with grey market estimates. The IPO was subscribed 273.08 times.
Upcoming IPOs:
- Travel Food Services (Mainboard IPO):
- Issue Size: ₹2,000 crore.
- Open/Close Dates: Opens on July 7, 2025, and closes on July 9, 2025.
- Details: This pure Offer for Sale (OFS) of 1.82 crore shares by the promoter (Kapur Family Trust) is priced between ₹1,045 and ₹1,100 per share. The company is a key player in India's airport quick-service restaurant (QSR) and lounge segments. Listing is expected on July 14, 2025.
- Chemkart India (SME IPO): Opens July 7-9, 2025.
- Smarten Power Systems (SME IPO): Opens July 7-9, 2025.
- GLEN Industries (SME IPO): Opens July 8-10, 2025.
- CFF Fluid Control FPO (SME FPO): Opens July 9-11, 2025.
The robust activity in the IPO market, especially the strong oversubscription rates and listing gains for SME IPOs, underscores ample liquidity and sustained investor interest in new investment opportunities, particularly in the smaller and mid-sized company segments.
Top Gainers:
Reason: Strong business update for Q1 FY26, with AUM jumping 25% year-on-year.
Reason: Modest rise in early trade due to strong growth in advances and deposits, though it closed marginally down.
Reason: General positive sentiment for the pharma sector.
Reason: Despite a customs duty dispute, the stock advanced on strong investor interest and robust upward momentum.
Reason: Positive trend in the pharma sector.
Reason: Reports of a potential merger with Devyani International.
Top Losers:
- Trent: ₹5,487.00, -11.37%
Reason: Investor unease due to a moderated Q1 outlook and a downgrade from Nuvama Institutional Equities.
Reason: The stock plunged due to SEBI's interim action banning US-based trading firm Jane Street from Indian markets for alleged manipulation in equity derivatives, raising concerns about potential impacts on volumes for the exchange.
Reason: Significant drop in gross client acquisition and lower market share in F&O and commodities.
Reason: Despite strong June 2025 sales figures (22% YoY jump in total motorcycle volumes), the stock experienced profit-booking, contributing to it being a top loser on the Nifty.
Reason: The stock experienced some selling pressure within the broader financial sector.
RBI & Domestic Economy:
- Ban on Prepayment Charges on Floating Home Loans (Effective Jan 1, 2026):
- Details: The RBI has barred banks and NBFCs from levying prepayment charges on most floating rate loans to individuals and Micro and Small Enterprises (MSEs). This applies to fresh loans sanctioned or renewed on or after January 1, 2026.
- Impact: This move aims to enhance credit flexibility for borrowers, promote competition among lenders, and prevent "restrictive clauses" that deter borrowers from switching lenders for better terms. It's seen as a borrower-friendly step that could lead to more affordable credit in the long run. The immediate impact on banks' existing loan books is minimal as it applies to future loans.
- RBI Floating Rate Savings Bonds Rate at 8.05% (July-Dec 2025):
- Details: The interest rate for RBI Floating Rate Savings Bonds for the current period (July-December 2025) has been maintained at 8.05%. This rate is linked to the National Savings Certificate (NSC) rate, with a spread of +0.35%.
- Impact: These bonds offer a secure, low-risk investment option, backed by the Government of India, appealing to conservative investors seeking stable returns. The competitive rate aims to encourage domestic savings and provide a stable funding source for the government.
- ₹1 Lakh Crore VRRR Auction Announced:
- Details: The Reserve Bank of India conducted a 7-day Variable Rate Reverse Repo (VRRR) auction to absorb ₹1 lakh crore from the banking system on July 4, 2025.
- Impact: This measure is a proactive step by the RBI to manage and absorb surplus liquidity in the banking system, which had surged due to government spending and previous liquidity injections. The aim is to keep the overnight money market rates aligned with the central bank's policy rates and ensure effective transmission of monetary policy. It signifies RBI's continued focus on liquidity normalisation.
- CPI Inflation at 3.16% (April 2025) – Lowest Since July 2019; Food Inflation at 1.78%:
- Details: India's retail inflation (CPI) eased to a nearly six-year low of 3.16% in April 2025, driven significantly by a sharp decline in food inflation to 1.78%. This marks the third consecutive month of inflation being below the RBI's target of 4%.
- Impact: Lower inflation provides more headroom for the RBI to consider potential interest rate cuts in the future, which could stimulate economic growth by making borrowing cheaper. It also improves consumer purchasing power and reduces input costs for businesses, fostering a more stable economic environment. This positive inflation data is a key factor supporting a favourable long-term outlook for the Indian economy.
Global Market Cues:
- US Markets Closed (Independence Day):
- Details: US stock markets, banks, and several other services were closed on July 4th for the Independence Day holiday.
- Impact: The closure of US markets typically leads to lower trading volumes and reduced volatility in global markets, as a major driver of international sentiment is absent. Indian markets, while reacting to domestic cues, often see reduced foreign institutional activity on such days.
- US Dollar Down 10% Year-to-Date:
- Details: The US dollar has experienced a significant decline of over 10% in the first half of 2025, marking its steepest drop since 1973. This is largely attributed to factors within the US economy, including unpredictable fiscal policies, rising debt, and uncertainty surrounding the independence of the Federal Reserve amid calls for rate cuts.
- Impact: A weaker US dollar generally makes Indian exports more competitive and reduces the cost of dollar-denominated imports like crude oil, benefiting India's current account balance and strengthening the rupee. However, it also signifies concerns about the stability of the US economy and its policies, which can inject broader global uncertainty.
- Brent Crude Steady at $67.94:
- Details: Brent crude prices remained relatively stable around $67.94 per barrel.
- Impact: Stable and relatively lower crude oil prices are highly beneficial for India, a major oil importer. They help reduce the country's import bill, improve its trade balance, and ease inflationary pressures by keeping fuel costs in check. This provides fiscal relief to the government and boosts the margins of oil marketing companies.
- Ongoing Concerns Over US Tariffs & Trade Policies:
- Details: A significant overhang for the market is the looming July 9 deadline for the potential reimposition of 26% reciprocal tariffs by the US on Indian goods. While India and the US are actively negotiating a mini-trade deal to avert these tariffs, the uncertainty persists, particularly regarding sensitive sectors like agriculture and dairy.
- Impact: The threat of tariffs creates headwinds for export-oriented Indian sectors, notably pharmaceuticals and solar. While Moody's suggests India might benefit from trade flow shifts away from other APAC nations due to tariffs, the ongoing uncertainty can deter foreign investment and impact long-term trade planning. The outcome of these trade negotiations will be crucial for specific Indian industries.
Key Data Points Ahead (Beyond Tomorrow):
- RBI Forex Reserves Data: The Reserve Bank of India is scheduled to release its foreign exchange reserves data for the week ending July 4, 2025, on July 11, 2025. This data is crucial as it indicates the health of India's external sector and the RBI's capacity to intervene in the forex market.
- WPI Inflation (June): The Wholesale Price Index (WPI) inflation data for June 2025 is set to be released on July 14, 2025. This will provide further insights into producer-level inflation trends, complementing the recently released low CPI inflation figures.
Earnings to Watch (Later in July):
- Infosys (Q1 FY26 Results): India's second-largest IT services firm, Infosys, will announce its financial results for the first quarter of FY26 on July 23, 2025. Investors will be keenly watching for revenue growth guidance, margin performance, and any updates on hiring trends amid global economic uncertainties.
- Coforge (Q1 FY26 Results): IT company Coforge is also scheduled to announce its Q1 FY26 results on July 23, 2025. The board will also consider the proposal for an interim dividend for FY26.
Overall Market Outlook for Tomorrow (July 5, 2025):
- Given the US markets were closed today, global cues for tomorrow might be limited to any overnight developments in Asian and European markets.
- Indian markets could continue in a consolidation phase, with stock-specific action and sectoral rotation remaining prominent.
- Traders will closely monitor the technical levels for Nifty, Sensex, and Bank Nifty to gauge the short-term direction. Any significant breach of support or resistance levels could trigger sharper moves.
- The absence of major domestic economic data releases tomorrow means the market will likely trade on technicals, liquidity flows, and news from specific companies or sectors.
The Indian market witnessed cautious trading, with large caps under pressure from SEBI’s regulatory actions and FII selling. However, DII inflows and strong SME IPO activity supported sentiment. Inflation trends remain favourable, but global uncertainties persist.
Investors should stay focused on Q1 earnings and key macro data for fresh market direction. Broader market strength and sector-specific plays remain attractive amid the consolidation phase.