The Indian stock market commenced the new month on a positive note on Tuesday, July 1, 2025, with benchmark indices recording marginal gains. This cautious optimism was driven by a rotation of capital towards select sectors and a mixed bag of global cues. Despite a subdued start, the market managed to close in the green, signalling underlying resilience.
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
Both the BSE Sensex and NSE Nifty ended with marginal gains, indicating a consolidation phase after recent movements.
The Sensex advanced by 87.43 points, closing at 83,693.89. It touched an intraday high of 84,058.90, showing some upward momentum before paring gains.
The Nifty gained 9.90 points, settling at 25,526.95, after touching an intraday high of 25,637.80.
Both indices recorded an approximate 0.04% to 0.10% increase for the day. The India VIX, the market's volatility gauge, eased by 1.94% to 12.54, suggesting a slight reduction in market fear.
The day witnessed a notable divergence in sectoral performance, with capital rotating towards defensive and value-oriented segments. Broader market indices showed a mixed trend; the Nifty MidCap 100 closed marginally lower by 0.28%, while the Nifty SmallCap 100 declined by 0.34%.
Key sector movements:
- Outperformers: Public Sector Banks (PSBs), Metal, Oil & Gas, Consumer Durables, Healthcare, and Pharma sectors saw buying interest and settled in the green. The Nifty PSU Bank index emerged as a top gainer, rising by 2.6%, following renewed buying interest and a push from the Finance Minister for increased lending.
- Underperformers: Auto, IT, Energy, FMCG, Media, and Realty sectors were among the laggards, facing some selling pressure or profit booking.
A mix of corporate developments, domestic economic data, and global headlines influenced the market's movements.
Domestic Market Drivers
Several corporate actions and economic updates captured investor attention:
- Reliance Industries Ltd (RIL): RIL's shares gained after Nuvama Institutional Equities raised its target price, citing the company's entry into external sales of high-efficiency solar modules, which is expected to significantly boost profits.
- Tata Motors: The company reported a decline in total sales for Q1 FY26, with domestic and international sales at 2,10,415 units, down from 2,29,891 units in Q1 FY25. Commercial Vehicle sales dropped 6% YoY, and Passenger Vehicle sales fell 10% YoY.
- Kalpataru Projects International: The company announced new orders worth ₹989 crore in the global power transmission and distribution sector, signalling healthy order books.
- Commercial LPG Price Cut: Oil marketing companies reduced the price of 19-kg commercial LPG cylinders by ₹58.50, effective July 1, to ₹1,665 per cylinder in Delhi. This could provide some relief to businesses.
- Industrial Production (May 2025): India's industrial production growth moderated to 1.2% in May, compared to 2.7% in April, primarily due to weak performance in electricity and mining, and sluggish manufacturing. Consumer durables saw a 0.7% decline after 17 months of increase, and consumer non-durables fell for the fourth consecutive month by 2.4%, indicating continued softness in consumer demand.
- Hospitality Sector Outlook: Motilal Oswal highlighted a positive outlook for the Indian hospitality sector in FY25-26, driven by rising Average Room Rates (ARRs), high occupancy, and resilient demand from various segments, including spiritual tourism and MICE (Meetings, Incentives, Conferences, and Exhibitions) activity.
Global Influences
Global market sentiment remained mixed, impacting local cues:
- Asian Markets: Largely traded with a cautious positive bias.
- US Dollar: The US Dollar Index (DXY) saw minor fluctuations.
- Crude Oil: Brent crude traded around $66-$67 per barrel, remaining relatively stable.
- Geopolitical Tensions: While the Iran-Israel ceasefire in West Asia helped stabilize oil prices, ongoing geopolitical uncertainties continued to be monitored.
- US Tariffs: Concerns lingered over potential US pharmaceutical tariffs and the recently imposed 26% reciprocal tariffs on Indian solar exports, which could impact specific export-oriented sectors.
Official FII and DII data for July 1, 2025, are typically released after market hours. However, based on the recent trends:
- FIIs (Foreign Institutional Investors): Given the flat market close, FII activity might remain balanced or show marginal movements.
- DIIs (Domestic Institutional Investors): DIIs have consistently provided strong support to the Indian markets. Their continued inflows are expected to cushion any significant foreign capital outflows.
The primary market remained buzzing with activity, demonstrating continued investor appetite for new listings.
IPOs and Listings on July 1, 2025
- Mainboard Listings:Kalpataru Projects International made a flat debut on both BSE and NSE, listing at its issue price. Ellenbarrie Industrial Gases and Globe Civil Projects also listed. Globe Civil Projects had an impressive debut, listing with a substantial premium of 28% on BSE and 26.76% on NSE, delivering strong returns despite valuation concerns.
- SME Listings:AJC Jewel Manufacturers, Shri Hare-Krishna Sponge Iron, Icon Facilitators, and Abram Food commenced trading on the SME platform.
- Allotments Finalized: Allotment for HDB Financial Services IPO was expected to be finalized, with its tentative listing in early July. Allotment processes for Sambhv Steel Tubes, Supertech EV, Suntech Infra Solutions, and Rama Telecom were also anticipated.
The robust oversubscription of recent IPOs like HDB Financial Services (17 times) highlights strong investor demand and ample liquidity flowing into new investment opportunities.
Upcoming IPOs in the Next Day/Week
- Mainboard:Crizac (₹860 crore, July 2-4), Travel Food Services (₹2,000 crore, July 3-7).
- SME:Cryogenic OGS (₹17.77 crore, July 3-7), White Force (July 3-7), Meta Infotech (July 4-8).
Individual stock performances reflected a blend of company-specific news and broader sectoral trends.
Leading Performers (Top Gainers - Nifty 50)
Reason: The significant surge was due to the company's announcement of a strategic "Composite Scheme of Arrangement" involving the demerger and subsequent listing of its digital health and omnichannel pharmacy businesses into a new entity. This move aims to unlock value for shareholders.
Reason: BEL secured additional orders worth over ₹500 crore, adding to its robust order book. Optimism surrounding India's growing defense sector and the government's "Make in India" initiative further fueled investor confidence.
Reason: The stock gained momentum after Jio BlackRock Mutual Fund launched three new open-ended debt schemes aimed at short-term income investors, strengthening Jio's presence in the financial sector and boosting investor confidence. Previous capital infusion into its payments bank arm and regulatory approvals for its broking and asset management ventures also contributed to positive sentiment.
Reason: The positive sentiment towards Reliance was driven by Nuvama Institutional Equities raising its target price, citing the company's entry into external sales of high-efficiency solar modules, expected to significantly boost profits. Its overall supportive role in the energy sector also played a part.
Reason: The increase in construction and infrastructure spending, alongside continued demand in the real estate sector, likely provided a boost to cement stocks.
Underperforming Stocks (Top Losers - Nifty 50)
Reason: The decline could be attributed to profit-booking after recent gains in the banking sector, or possibly due to increased trading activity in put options, signaling some bearish sentiment.
Reason: The dip in Nestle India could be due to broader selling pressure in the FMCG sector, potentially exacerbated by subdued consumer demand indicated by the recent industrial production data showing a decline in consumer non-durables.
Reason: Without specific news, the decline for Eternal Limited might be due to general market volatility, profit-booking after previous gains, or company-specific factors not immediately available.
Reason: Despite its announcement of capacity expansion plans, Tata Steel faced a slight downturn, possibly due to broader profit-booking in the metals sector or concerns over global steel demand and commodity price fluctuations.
Reason: The pharmaceutical sector continued to show weakness, largely due to lingering concerns over potential US pharmaceutical tariffs hinted at by President Trump, and continued FII exits from the sector.
The broader economic and geopolitical landscape continued to shape the Indian market.
Domestic Economic Landscape
- Monetary Policy: The RBI is expected to maintain its focus on achieving the 4% CPI inflation target while supporting growth.
- Inflation: CPI headline inflation moderated to 3.2% in April 2025, and food inflation declined for the sixth consecutive month.
- Economic Anniversaries: July 1 marked the 8th anniversary of GST implementation and 10 years of the Digital India initiative, highlighting positive structural reforms.
International Economic and Geopolitical Developments
- US Federal Reserve (Fed): Markets are keenly watching for any signals on potential interest rate cuts from the Fed, possibly as early as September, depending on inflation and unemployment data.
- Global Trade: Discussions around potential US tariffs on Indian goods remain a point of concern for export-oriented sectors, especially pharmaceuticals and solar. India's efforts to diversify trade routes, such as the Trans-Caspian International Transport Route (TITR), aim to enhance supply chain resilience.
Investors will closely monitor several factors for further market direction.
Upcoming Economic Data and Events
- July 2, 2025: No major economic data releases are expected for India.
Immediate Earnings Announcements
- July 2: Asian Hotels (West) is scheduled to announce its financial results.
- July 10: Tata Consultancy Services (TCS) will kick off the Q1 FY26 IT earnings season with its results and an interim dividend announcement.
Investor Expectations
- The market is expected to remain range-bound with a slight positive bias as investors await fresh triggers.
- Stock-specific action is likely to continue, driven by corporate announcements and sectoral rotations.
- The performance of global markets, particularly the US, will continue to influence Indian equities.
- Attention will gradually shift towards the upcoming Q1 FY26 earnings season for corporate performance cues.
The Indian stock market on July 1, 2025, opened the month with modest gains, reflecting a cautious but constructive sentiment. While benchmark indices edged higher, a clear sectoral rotation was evident, with PSBs, Metal, and Healthcare outperforming, while IT and Auto faced headwinds.
The domestic economic data, including a moderation in industrial production, presented a mixed picture. Global cues remained somewhat varied, with lingering tariff concerns. However, the consistent strength of domestic institutional inflows and a buoyant IPO market continue to underpin market stability. Investors are advised to maintain a stock-specific approach, focusing on fundamentally strong companies and sectors aligned with India's long-term growth trajectory.