The Indian stock market experienced a day of fluctuating fortunes on Thursday, 3 July 2025, ultimately closing in the red despite an optimistic start. Both the benchmark Nifty 50 and BSE Sensex pared their early gains, succumbing to profit booking and cautious sentiment driven by global cues and specific corporate developments. Domestic institutional buying provided some counterbalance, but it was not enough to prevent a second consecutive day of losses for the key indices.
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
Today's trading session saw India's leading equity benchmarks, the Nifty 50 and BSE Sensex, open on a positive note, reflecting an initial wave of investor confidence. This early momentum, however, proved short-lived as profit booking emerged, leading to a subdued close for both indices. The market's inability to sustain its early gains, culminating in a negative close, points to significant intraday volatility and active profit-taking. This suggests that investors were quick to capitalise on any upward movement, indicating an underlying cautiousness prevailing in the market.
The Nifty 50 opened at 25,505.10, hit a high of 25,587.50, and slipped to a low of 25,384.35 before closing at 25,405.30, down 48.10 points (0.19%) from the previous close of 25,453.40.
The Sensex opened at 83,540.74, climbed to 83,836.99, and hit a low of 83,186.74, ending the day at 83,239.47, a drop of 170.22 points (0.20%) from the prior close of 83,409.69.
Several key developments, both domestic and international, influenced the mood on Dalal Street today, contributing to the Indian stock market's volatile trajectory.
Trade Deal Optimism and Tariff Caution
Initial market optimism was fuelled by reports suggesting a potential India-U.S. trade deal could be finalised soon. The recent U.S.-Vietnam trade deal also contributed to positive sentiment in domestic equities. However, this optimism was tempered by caution ahead of the impending U.S. tariff deadline, which is set to come into force from 9 July. The rapid shift in market sentiment from initial optimism about potential trade deals to caution due to impending tariffs underscores the heightened sensitivity of the Indian market to global trade policies and geopolitical developments. This means that external factors can quickly override domestic positives, leading to rapid reversals in market direction.
Corporate Announcements and Sectoral Shifts
Market attention is gradually shifting towards the crucial Q1 earnings season, with high expectations from corporate results. Company-specific developments also played a significant role in individual stock movements.
- Nykaa Block Deal: Shares of FSN E-Commerce Ventures Ltd (Nykaa) declined by approximately 4% in early trade after a significant block deal involving nearly 6 crore shares, amounting to 2.3% of the company's total equity. Light House India Fund III was identified as one of the selling shareholders.
- D-Mart Q1 Update: Avenue Supermarts Ltd (D-Mart) saw its share price drop by around 4% following a disappointing Q1 FY26 update.
- CCI Approval: The Competition Commission of India (CCI) approved Coromandel International's ₹820 crore bid for a majority stake in NACL Industries.
- IRIS Business Services: IRIS Business Services Ltd surged by 4.99% after its Board approved the divestment of its entire GST ASP services business.
- Kirloskar Ferrous Industries: Kirloskar Ferrous Industries Limited announced its 34th Annual General Meeting (AGM) and a final dividend proposal of ₹2.50 per share.
The significant impact of the Nykaa block deal and D-Mart's Q1 results on their respective stock prices demonstrates that company-specific news and corporate actions can heavily influence individual stock movements, even on a day when broader macroeconomic themes are at play. This highlights that while macro factors set the overall tone, micro-level news remains critical for stock-picking decisions and can lead to significant deviations from the broader market trend.
Despite the overall market closing lower, certain sectors demonstrated resilience and even posted gains. This indicates that investors are not indiscriminately selling but are selectively allocating capital to sectors with perceived stronger fundamentals or defensive characteristics.
Leading Gains:
- Nifty Auto emerged as a top performer, rising by 0.7%, indicating broad strength across the automobile space.
- Nifty IT and Nifty Metal indices also registered gains of 0.4% each, signalling investor interest.
- Nifty FMCG edged up marginally, while Nifty Pharma remained largely flat.
- Consumer Durables and Healthcare also witnessed gains.
Experiencing Declines:
- Conversely, some sectors faced headwinds. Nifty PSU Bank fell by 0.5%, while Realty and Media dipped by 0.2% each.
- Nifty Energy and Infra also saw mild declines, reflecting cautious sentiment.
- Financials, Metals, and Realty sectors faced selling pressure.
The flow of funds from institutional investors provides crucial insights into market sentiment and direction. On Wednesday, 2 July 2025, a day prior to the current wrap-up, a clear divergence was observed between foreign and domestic institutional activity.
Foreign Institutional Investors (FIIs)
FIIs continued their selling streak, emerging as net sellers in the Indian equity market. On 2 July 2025, FIIs net sold equities worth approximately ₹1,562 crore.
Domestic Institutional Investors (DIIs)
In contrast, DIIs displayed strong buying interest, acting as a significant counterweight to FII outflows. On 2 July 2025, DIIs were net buyers, pumping in approximately ₹3,037 crore into the market.
The substantial net buying by Domestic Institutional Investors effectively absorbed the selling pressure from Foreign Institutional Investors. This highlights the growing resilience of the Indian stock market, where domestic liquidity is increasingly capable of cushioning the impact of foreign outflows, preventing sharper declines. The persistent FII selling, observed over recent sessions, contrasts sharply with the consistent DII buying. This divergence suggests differing outlooks or investment mandates between foreign and domestic capital. Foreign investors might be reacting to global risk-off sentiment or reallocating to other markets, while domestic investors are likely finding value in the Indian market, possibly supported by robust domestic macroeconomic fundamentals and increased government expenditure.
The primary market remained active on 3 July 2025, with several Initial Public Offerings (IPOs) open for subscription and new listings making their debut, indicating continued investor interest in fresh investment opportunities.
Initial Public Offerings (IPOs) Open for Subscription
- Crizac Limited IPO: This mainboard IPO, a book-built issue worth ₹860 crore (entirely an Offer for Sale), opened on 2 July and will close on 4 July 2025. The price band is set between ₹233 and ₹245 per share, with a minimum retail investment of ₹14,213 for 61 shares. By 2:40 PM on 3 July, the overall subscription had improved to 1.94 times, driven by retail (2.17 times) and NII (3.83 times), though QIB remained low at 0.12 times. The Grey Market Premium (GMP) for Crizac was reported at ₹39 as of 09:34 a.m. on 3 July, suggesting a potential listing at ₹284, a premium of 15.9% over the upper price band.
- White Force IPO: This SME IPO, a fresh issue of ₹24.25 crore, opened today, 3 July, and will close on 7 July 2025. The price band is ₹72–₹76 per share, with a minimum lot size of 1,600 shares. As of the end of Day 1 (3 July), the IPO was subscribed 0.29 times overall, with QIBs at 0.00 times, NIIs at 0.88 times, and Retail Individual Investors (RIIs) at 0.21 times.
- Cryogenic OGS IPO: Another SME IPO, this fresh issue of ₹17.77 crore, also opened today, 3 July, and will close on 7 July 2025. The price band is ₹44–₹47 per share, with a minimum lot size of 3,000 shares. As of the end of Day 1 (3 July), this IPO saw significant interest, with an overall subscription of 12.97 times. NIIs subscribed 13.09 times, and RIIs subscribed 20.30 times, though QIBs showed no subscription (0.00 times). Its GMP was ₹20 as of 12:00 IST on 3 July, indicating a potential listing at ₹67, a substantial 42.55% premium.
- Travel Food Services IPO Update: Travel Food Services, a prominent mainboard IPO, is scheduled to open for subscription on Monday, July 7, 2025, and will close on Wednesday, July 9, 2025. The issue size is approximately ₹2,000 crore, entirely an Offer for Sale (OFS) by the promoter, Kapur Family Trust. The price band for the IPO has been fixed at ₹1,045 to ₹1,100 per equity share.
The overwhelming subscription rates and positive listing performance of SME IPOs like Ace Alpha Tech, Moving Media Entertainment, and Cryogenic OGS indicate a robust and potentially growing investor appetite for smaller, high-growth companies. This suggests that investors are actively seeking opportunities beyond established mainboard companies, possibly for higher potential returns.
New Listings Today (3 July 2025)
- Ace Alpha Tech Limited: Made an impressive debut on the BSE SME platform, listing at ₹81 against its issue price of ₹69, a premium of 17.39%. This strong performance followed an overwhelming subscription of 101.75 times during its IPO.
- Moving Media Entertainment Ltd: Listed robustly on the NSE Emerge platform at ₹71, against an IPO price of ₹70. The stock quickly hit its 5% upper circuit to reach ₹74.55. Its IPO was subscribed an impressive 50.53 times.
- Indogulf Cropsciences: The stock listed flat today at ₹111 on both NSE and BSE.
Other Market Buzz
- HDB Financial Services: Shares of HDFC Bank-backed HDB Financial Services continued their post-listing rally, surging by as much as 6% today to an intraday high of ₹891.65 on the BSE. This extended their total gains for IPO investors to 20.5% from the IPO issue price of ₹740. The continued surge in HDB Financial Services shares even after its listing day demonstrates that fundamentally strong companies can maintain positive momentum beyond their initial market debut. This indicates that the market is rewarding quality issues with sustained investor interest.
Today's trading session saw a mixed bag of performances across individual stocks, with some sectors showing resilience while others faced significant selling pressure.
Top Gainers
Hero Motocorp: ₹4,318.00 up by 1.75%
Reason: Strong auto sector demand optimism ahead of Q1 earnings and rural recovery expectations.
Apollo Hospitals: ₹7,572.50 up by 1.77%
Reason: Sector rotation into defensives and healthcare stocks on valuation comfort and steady business outlook.
Tata Steel: ₹165.55 up by 0.02%
Reason: Positive sentiment in global metals and firm domestic steel demand cues.
Cipla: ₹1,507.50 up by 0.66%%
Reason: Positive sentiment from recent strong FY25 financial performance, including significant revenue and profit growth, expansion into new global markets (like China), and consistent dividend declarations, overriding minor intraday fluctuations.
ONGC: ₹243.95 up by 1.19%
Reason: Recovery in crude prices and value-buying in the energy space.
Top Losers
Shriram Finance: ₹675.20 Down by 0.25%
Reason: Profit booking in NBFCs amid cautious commentary on lending growth and asset quality.
HDFC Life: ₹783.90 Down by 0.73%
Reason: Sector-wide weakness in life insurers due to mixed premium growth trends and FII selling.
IndusInd Bank: ₹861.95 Down by 2.41%
Reason: Selling pressure in banking stocks amid global risk-off sentiment and profit booking.
SBI Life Insurance: ₹1,803.60 Down by 2.87%
Reason: FII outflows and subdued business momentum commentary from peers.
Grasim Industries: ₹2,814.40 Down by 1.24%
Reason: Profit booking after a sharp recent rally and correction in global commodity prices.
Beyond the immediate market dynamics, several broader economic and global factors played a role in shaping today's trading sentiment.
Domestic Economic Indicators
Despite global uncertainties and foreign institutional investor outflows, robust domestic macroeconomic fundamentals continue to provide underlying support, preventing a sharper market downturn. This suggests that India's internal economic health is acting as a crucial buffer against external headwinds.
- Manufacturing PMI: India's manufacturing sector growth reached a 14-month peak of 58.4 in June, showing improved output and new orders, alongside record employment growth. The HSBC India Manufacturing Purchasing Managers' Index registered 57.6 in May.
- GST Collections: GST collections rose by 6.2% to over ₹1.84 lakh crore in June, though this was lower than the ₹2 lakh crore collected in the previous two months. Collections stood at ₹1.74 lakh crore in the same period last year.
- RBI Announcements: The Reserve Bank of India (RBI) announced that interest rates for its floating rate savings bonds for July to December 2025 will remain unchanged at 8.05% (7.70% NSC rate + 0.35% premium). Furthermore, the RBI has barred banks and other regulated lenders from imposing pre-payment charges on floating rate loans availed by individuals for non-business purposes, effective from 1 January 2026. This move aims to enhance transparency and borrower flexibility.
Global Market Cues
The mixed performance of global markets, particularly the US, and the decline in oil and gold prices, clearly influenced domestic sentiment. This highlights the interconnectedness of global financial systems and how international trends directly impact local market behaviour.
- Asian Markets: Asian markets closed mixed, with South Korea's Kospi, Japan's Nikkei 225, and Shanghai's SSE Composite declining, while Hong Kong's Hang Seng advanced.
- European Markets: European markets traded positively during mid-session.
- US Markets: US markets showed mixed results on Tuesday, but on Wednesday, the S&P 500 and Nasdaq Composite both achieved record closing highs, primarily driven by robust performance in the technology sector and a US-Vietnam trade agreement. The Dow Jones ended marginally lower but remained close to its previous record.
- Oil Prices: Brent crude, the global oil benchmark, declined by 0.9% to trade at $68.20 per barrel. Similarly, the US benchmark West Texas Intermediate (WTI) decreased by about 1%, settling at $66.01 per barrel. This decline was attributed to concerns regarding weak US consumption after official data indicated an unexpected increase in stockpiles in the largest crude-consuming nation.
- Gold Prices: Gold prices decreased today following the US-Vietnam trade agreement that alleviated tensions.
- US Employment Data: Investors remained focused on upcoming US employment figures for insights into the Federal Reserve's policy direction.
As the Indian stock market looks ahead, several factors will likely influence trading sentiment and direction.
Upcoming Economic Data
- US Employment Data: Key economic data from the US, including the Employment Situation, Trade Balance, and ISM Non-Manufacturing data, are scheduled for release on 4 July 2025. These figures will be closely watched for their implications on global interest rate trajectories and investor sentiment.
- India's Economic Survey: The Economic Survey for 2024-2025 is available and provides a comprehensive overview of the Indian economy, which could inform investor decisions.
Q1 Earnings Season
Market attention is gradually shifting to the crucial Q1 earnings season, with high expectations from corporate results. Individual company announcements and their performance against expectations will likely drive stock-specific movements.
Today's Indian stock market session on 3 July 2025 was characterised by an initial surge of optimism that quickly gave way to profit booking, resulting in both the Nifty 50 and Sensex closing in negative territory for a second consecutive day. While global trade deal hopes provided an early boost, caution surrounding impending US tariffs and company-specific news, such as the Nykaa block deal and D-Mart's Q1 results, heavily influenced market direction.
A key theme of the day was the strong counter-balancing act by Domestic Institutional Investors (DIIs), whose significant buying activity helped to cushion the impact of persistent selling by Foreign Institutional Investors (FIIs). This highlights the increasing maturity and resilience of the Indian market, where domestic liquidity is playing a crucial stabilising role.
Despite the headline indices showing a decline, the broader market breadth remained somewhat positive, indicating that selling pressure was concentrated in a few large-cap stocks, while a greater number of smaller companies managed to advance. The primary market continued to buzz with activity, as several new IPOs opened for subscription and some recent listings delivered impressive premiums, particularly in the SME segment. This suggests a strong appetite among investors for fresh opportunities, especially in high-growth smaller companies.
Looking ahead, the market remains sensitive to global cues, particularly US economic data, and domestic Q1 earnings announcements. While underlying macroeconomic fundamentals in India remain robust, investors are advised to approach the market with a degree of caution, focusing on selective opportunities and being prepared for continued volatility.