A Day of Caution and Sectoral Shifts The Indian equity markets concluded Thursday's trading session on a cautious note, with key benchmark indices registering declines. Investor sentiment was largely influenced by the subdued commencement of the June quarter earnings season domestically, coupled with lingering global trade uncertainties. This performance marked a negative close for both major indices, reflecting an underlying apprehension among market participants, though specific sectors like Realty and Pharma managed to defy the broader downtrend.
Table of Contents
- Key Market Indices Performance
- Broader Market Shows Widespread Weakness
- Sector-wise Performance Highlights
- Top Stock Market News of the Day
- FII and DII Activity This Week
- IPOs, Listings, and Market Buzz
- Top Gainers and Losers (Intra-day July 17, 2025)
- Economic and Global Factors
- What to Watch in the Coming Days
- Final Takeaway
Indian equity benchmark indices settled lower on Thursday, 17th July 2025, as investors maintained a cautious stance.
- TheBSE Sensex fell by 375.24 points, a decline of 0.45 per cent, to close at 82,259.24.
- The NSE Nifty50 settled at 25,111.45 levels, down by 100.6 points or 0.4 per cent.
The cautious sentiment extended beyond the large-cap indices, impacting the broader markets as well. The Nifty MidCap index experienced a fall of 0.27 per cent, while the Nifty SmallCap index was down by 0.18 per cent. This broad-based weakness suggested widespread investor concerns affecting various market segments.
Sectoral performance on Thursday exhibited a notable divergence. The Nifty IT sector emerged as the top laggard, declining significantly by 1.39 per cent, primarily due to the lackluster beginning of the June quarter earnings season and broader global economic headwinds impacting tech spending. Tech Mahindra's shares, for instance, fell by 2 per cent after missing its Q1 estimates. Other sectors that settled in the red included Nifty Bank, Auto, Financial Services, Media, and Oil & Gas.
In contrast, the Nifty Realty sector stood out as the top performer, gaining 1.24 per cent, with stocks like Sobha Ltd and Brigade Enterprises Ltd advancing by 2.15 per cent and 1.87 per cent respectively. This outperformance in realty, alongside Metal, Consumer Durable, FMCG, Energy, and Pharma sectors, indicated a potential shift in investor preference towards domestically driven sectors or those perceived as more resilient. The India VIX, a key gauge of market volatility, settled marginally higher at 11.24 points, up 0.02 per cent, reflecting a slight increase in market uncertainty.
Several key domestic and global news events significantly influenced market movements:
- US President Donald Trump's comments regarding the India-US trade deal cast a shadow over investor sentiment, with hints of potential tariffs higher than the standard 10 per cent. India has maintained a firm stance on US demands for duty concessions on agricultural and dairy products.
- The lackluster beginning of the June quarter earnings season was a significant drag, particularly on major IT companies. Tech Mahindra fell 2 per cent after missing Q1 estimates, and Infosys declined over 1 per cent.
- The Nifty50's weekly Futures & Options (F&O) expiry contributed to choppy intraday volatility.
- The Reserve Bank of India (RBI) is reportedly considering relaxing the cap on foreign ownership in Indian private banks from 15 per cent to 26 per cent for strategic investors.
- HDFC Bank's board is set to discuss its first-ever bonus issue and a special dividend on 19th July 2025, boosting investor interest.
- Other corporate news included Reliance Power dropping 2 per cent on fundraising plans, HUDCO approving NCDs, Patanjali Foods recommending bonus shares, and Godrej Properties debuting in Raipur.
The activity of Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) showed a clear divergence in investment patterns for July:
- Foreign Institutional Investors (FIIs) have largely been net sellers throughout July, offloading over ₹13,600 crore month-to-date. They were net sellers on 16th July (₹1,858.20 crore outflow) and 14th July (₹1,614.30 crore outflow), with a minor net buying on 15th July (₹120.50 crore inflow). This persistent selling is attributed to global factors like weak markets, tariff uncertainty, and fading hopes of a US Fed rate cut.
- In stark contrast, Domestic Institutional Investors (DIIs) have remained strong and consistent buyers throughout July, pumping in a substantial ₹16,969 crore month-to-date. They were net buyers on 16th July (₹1,223.60 crore inflow), 15th July (₹1,555.00 crore inflow), and 14th July (₹1,787.70 crore inflow). This consistent buying by DIIs has provided a crucial cushion to domestic markets, highlighting the increasing resilience of the Indian market supported by domestic liquidity and investor confidence.
The primary market remained notably active on 17th July 2025, indicating a healthy appetite for new offerings:
- Smartworks Coworking Spaces Limitedmade a positive debut on BSE, listing at a 7 per cent premium. Its Grey Market Premium (GMP) stood at ₹25.
- ForAnthem Biosciences IPO, allotment was expected to be finalized on 17th July, with tentative listing on 21st July. Its GMP was ₹144, suggesting an estimated listing gain of 25.26 per cent. The IPO was subscribed 67.42 times overall.
- Spunweb Nonwoven IPO was subscribed 139 times by Day 3, with its GMP at 44 per cent.
- Upcoming IPOs include Monika Alcobev IPO (bidding 16th-18th July), Savy Infra IPO (21st-23rd July), and Property Share Investment Trust IPO (21st-25th July).
- A significant pipeline for 2025 includes major names like Reliance Jio, Zepto, Tata Capital, Tata Passenger Electric Mobility (TPEML), Boat, Puranik Builders, and FabIndia. This robust activity and pipeline suggest ample liquidity and confidence in India's diverse economic narratives.
On Thursday, 17th July 2025, the market witnessed a clear divergence in stock performance:
Top Gainers (Intra-day July 17, 2025 - Nifty 50):
TATA Cons. Prod
- Closing Price: ₹1,081.50
- Change: ₹24.30
- Percentage Change: +2.25%
- Observation: Tata Consumer Products showed a healthy gain, possibly reflecting positive sentiment in the FMCG sector or specific company news related to its product portfolio or market expansion.
Tata Steel
- Closing Price: ₹157.33
- Change: ₹2.57
- Percentage Change: +1.63%
- Observation: Despite general pressure sometimes seen in the metal sector, Tata Steel managed to register a gain, which could be attributed to a rebound in metal prices or specific company developments.
Hindalco
- Closing Price: ₹666.75
- Change: ₹7.80
- Percentage Change: +1.17%
- Observation: Hindalco's positive movement indicates strength in the aluminum and copper segments, potentially driven by global commodity price trends or favorable demand outlook.
Trent
- Closing Price: ₹5,382.00
- Change: ₹35.50
- Percentage Change: +0.66%
- Observation: Trent's moderate gain reflects a positive sentiment in the retail sector, possibly due to strong consumer spending trends or positive updates from the company's various retail formats.
Titan Company
- Closing Price: ₹3,417.30
- Change: ₹16.00
- Percentage Change: +0.47%
- Observation: Titan Company's slight increase suggests sustained demand in the consumer discretionary segment, particularly for jewelry and watches, or positive analyst outlook.
Top Losers (Intra-day July 17, 2025 - Nifty 50):
Tech Mahindra
- Closing Price: ₹1,607.90
- Change: ₹-44.20
- Percentage Change: -2.75%
- Observation: Tech Mahindra experienced a significant decline. This comes after the company announced its Q1 FY26 results (post-market hours on July 16th), which, despite a rise in consolidated net profit, missed Street estimates on profit and revenue. This suggests investor disappointment regarding the company's financial performance and outlook, likely due to continued weakness in discretionary client spending, particularly in the Americas region and certain verticals.
IndusInd Bank
- Closing Price: ₹879.75
- Change: ₹-14.65
- Percentage Change: -1.67%
- Observation: IndusInd Bank saw a drop, aligning with a cautious sentiment in the banking sector. While no specific major negative news for July 16th was prominently reported, broader market sentiment regarding interest rates or asset quality concerns could have played a role. Previous reports indicated a decline in March due to bulk deals and weak Q3 FY25 financial performance.
Infosys
- Closing Price: ₹1,607.90
- Change: ₹-24.40
- Percentage Change: -1.52%
- Observation: Infosys, a major IT player, also registered losses. This decline could be a continuation of cautious investor sentiment in the IT sector ahead of its Q1 FY26 results (scheduled for July 23, 2025). Weaker-than-expected revenue growth from a major peer (TCS) and ongoing global macroeconomic uncertainties impacting client spending are likely contributing factors.
SBI Life Insurance
- Closing Price: ₹1,829.10
- Change: ₹-26.30
- Percentage Change: -1.44%
- Observation: SBI Life Insurance saw a dip, which could be due to profit booking after recent gains or broader negative sentiment impacting the insurance sector. The company's board meeting on July 24, 2025, to consider and approve Q1 FY26 results, might be leading to some pre-results volatility.
HCL Tech
- Closing Price: ₹1,562.80
- Change: ₹-18.90
- Percentage Change: -1.21%
- Observation: HCL Tech's decline reflects the overall weakness in the IT sector on this day. Similar to Infosys and Tech Mahindra, concerns about global IT spending and the broader macroeconomic environment likely weighed on investor sentiment for this stock.
The clear divergence between export-oriented sectors (like IT) and domestic-centric sectors (like Realty, Pharma, Metal) suggests a market rotation, with investors favoring sectors with clearer domestic growth drivers amidst global uncertainty.
Several broader economic and global factors influenced market sentiment:
- RBI Policy Stance: No new announcements on 17th July, but the market continues to operate under the influence of the RBI's June 6th Monetary Policy Update, which reduced the repo rate by 50 bps to 5.50 per cent to target 4 per cent CPI inflation and boost growth.
- India's Inflation: Retail CPI inflation cooled to a six-year low of 2.10 per cent (provisional) year-on-year for June 2025, reinforcing expectations of a dovish RBI stance. Food inflation also sharply declined.
- Crude Oil Prices: Crude oil prices increased on Thursday, with Brent crude futures rising 0.1 per cent to $68.60 a barrel, buoyed by stronger economic data and easing trade tensions. India's proactive stance on securing alternative energy supplies if Russian oil imports are disrupted aims to mitigate future price volatility impacts.
- Global Factors: Fading hopes of a near-term US Federal Reserve rate cut due to sticky inflation (US inflation rose 0.3 per cent in June) continued to add market uncertainty and strengthened the US dollar. The global BlackRock Geopolitical Risk Indicator (BGRI) remains elevated due to ongoing conflicts and US-China strategic competition. Despite global headwinds, India is increasingly emerging as a "sweet spot" for foreign brands, driven by its domestic consumption story and strategic positioning.
As the week draws to a close, investors will closely monitor several key events:
- Upcoming Economic Data: The next release for India's CPI for July 2025 is on 12th August 2025. Global economic calendars indicate various international data points like Euro area GDP and US Durable Goods will be watched for indirect impact.
- Q1 Earnings Season: The earnings season is gathering pace. Key companies releasing results soon include HCL Tech, Tech Mahindra, Axis Bank, ICICI Bank, Wipro, JSW Steel, L&T Finance, and HDFC Bank. The Financials sector is predicted to report a 2.4 per cent year-over-year earnings growth for Q2 2025.
- Investor Expectations: A period of consolidation with a potential upward bias is expected, supported by better rural and healthcare performance. The Indian rupee is expected to remain volatile within a range of 85.25 to 86.20. The Indian economy is projected to grow at 6.5 per cent in FY26, driven by low inflation, a healthy monsoon, and rising government capital expenditure, suggesting a positive medium to long-term outlook.
Thursday, 17th July 2025, saw Indian equity benchmarks close lower, primarily driven by investor caution stemming from a subdued start to the June quarter earnings season and ongoing global trade uncertainties. The IT and Banking sectors lagged, while Realty, Metal, and Pharma demonstrated resilience, indicating a shift towards domestically-driven segments. Despite persistent FII outflows, strong and consistent DII buying provided crucial market support. The IPO market remained robust, signalling healthy investor appetite for growth opportunities. India's retail inflation cooled to a six-year low, reinforcing expectations of a dovish RBI stance. However, global factors like sticky US inflation and rising trade protectionism continue to influence market sentiment.
In a market influenced by both robust domestic fundamentals and evolving global headwinds, staying informed and adopting a cautious, selective approach remains paramount for investors navigating the dynamic landscape of the Indian stock market.