The Indian stock market on Monday, July 7, 2025, experienced a day of cautious trading, closing largely flat despite underlying negative market breadth. Global uncertainties, particularly around the India-US trade deal and Middle East tensions, influenced sentiment, while domestic factors like government initiatives and robust private bank performance provided some resilience.
Table of Contents
- Key Market Indices Performance
- Broader Market Mixed, Sector Rotation in Focus
- Sector-wise Performance Highlights
- Top Stock Market News of the Day
- FII and DII Activity Today
- IPOs, Listings, and Market Buzz
- Top Gainers and Losers
- Economic and Global Factors
- What to Watch in the Coming Days
- Final Takeaway
The Indian equity benchmarks concluded with marginal gains after an initial dip and a day characterised by cautious sentiment:
- TheBSE Sensex closed at 83,442.50 points, up by 9.61 points (0.01%).
- The Nifty 50settled at 25,461.30 points, with a gain of 0.30 points (0.001%).
Earlier in the day, both indices opened lower due to concerns over the India-US trade agreement and geopolitical tensions. The India VIX, the volatility index, jumped 3% to approximately 12.6125 in early trading, signalling heightened market nervousness.
While the main indices showed stability, the broader market displayed caution:
- Market breadth was negative, with 1,442 stocks declining compared to 1,220 advancing.
- The NSE MidCap 100 index declined by 0.27%.
- The NSE SmallCap 100 index dipped by 0.44%.
This divergence suggests that the stability of the Sensex and Nifty might have masked widespread underlying weakness, indicating a "flight to quality" or selective buying concentrated in a few large-cap, defensive stocks.
Sectoral performance was largely subdued, with defensive sectors showing resilience:
Top Performing Sectors:
- Nifty FMCG: Rose by 0.47%
- Nifty Oil & Gas: Advanced by 0.45%
- Nifty Energy: Edged up by 0.01%
This outperformance suggests a rotation of funds towards stable sectors amid uncertainties.
Declining Sectors:
- Nifty Metal: Fell by 0.38%
- Nifty IT: Dropped by 0.36%
- Nifty Auto, Bank, Consumer Durables, and Realty indices: Registered dips between 0.12% and 0.17%.
Gains in consumer and oil & gas giants like Hindustan Unilever (HUL), which jumped 3%, helped offset declines in financial and IT shares. Lower global crude oil prices also benefited energy companies.
Several significant domestic and global developments shaped market sentiment:
India-US Trade Deal Uncertainty
Uncertainty regarding the finalisation of an India-US trade agreement was a primary concern. US President Donald Trump's impending July 9 deadline for the 90-day tariff suspension raised fears of a 26% additional duty on Indian goods, particularly impacting export-oriented sectors. India's Commerce Minister Piyush Goyal reiterated that India would not sign any pact based on deadlines.
Geopolitical Tensions in the Middle East
Persistent geopolitical tensions in the Middle East contributed to increased risk aversion among investors.
SEBI Action Against Jane Street
Shares of Nuvama Wealth plummeted over 6% after SEBI barred Jane Street, a US-based quant trading firm, due to suspected manipulative trading activities. This regulatory crackdown impacted the capital markets index (-2%) and related stocks like BSE and 360 ONE WAM.
Defence Sector Rally
Defence-related companies surged following the Defence Acquisition Council (DAC) approval of domestic purchases worth ₹1.05 lakh crore. Stocks like Paras Defence, BEML, BDL, and HAL gained up to 9%, with the Nifty India Defence index rising 1.7%.
Private Banks' Market Capitalisation Growth
Leading private banks, including HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank, collectively saw their market capitalisation increase by over ₹4 lakh crore in 2025. This was led by HDFC Bank, driven by robust earnings and improving credit demand.
The movements of Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) are crucial indicators:
Foreign Institutional Investor (FII) Activity
Foreign portfolio investors (FPIs) turned net sellers in the initial week of July, pulling out ₹1,421 crore from Indian equities. For the month of July up to the 7th, FIIs recorded a net sale of ₹5,364.20 crore. This marks a reversal from June 2025, which saw ₹14,590 crore in FPI inflows.
Domestic Institutional Investor (DII) Flows
In contrast, DIIs continued to demonstrate strong buying interest, with a significant net purchase of ₹75,129.10 crore in equities for July till date. This robust DII buying has consistently acted as a counter-balance to FII outflows, providing crucial market support.
Impact on Market Sentiment
The persistent FII outflows contributed to subdued domestic market sentiment and exerted downward pressure on the Indian rupee, which declined by 26 paise to 85.66 against the US dollar in early trading. DII buying highlights their increasing role as a stabilising force, suggesting growing confidence among domestic investors in India's long-term growth story.
The Indian primary market witnessed considerable activity and investor interest:
Key IPOs and Listings Today/Recent
- Travel Food Services IPO: Opened on July 7, aims to raise ₹2,000 crore through an Offer for Sale (OFS). The price band is ₹1,045 to ₹1,100 per share. On Day 1, it received a muted response (9% overall subscription), with a Grey Market Premium (GMP) of ₹16.
- Cryogenic OGS Limited IPO: Closed on July 7, aimed to raise ₹17.77 crore. It saw a strong reception, oversubscribed by 27.93 times by Day 2. The GMP was reported at ₹20, indicating a potential 42.55% premium above the upper price band.
Individual Stock Movers
- PC Jeweller (PCJEWELLER): Rallied over 10% due to strong Q1 FY26 numbers and debt reduction.
- Dabur India Ltd (DABUR): Shares rallied 4.02% following Q1 FY26 business highlights.
- Godha Cabcon & Insulation (GODHA): Closed up 4.6% (upper circuit) driven by nearly tenfold increase in FY25 revenues.
- Jaiprakash Power Ventures (JPPOWER): Gained 6.8%.
- Sindhu Trade Links (SINDHUTRAD): Advanced 5.2%.
- Bajaj Hindusthan Sugar: Added 3.1%.
- BLS International Services: Increased 2.5%.
The contrasting IPO receptions and rallies in smaller-cap stocks suggest investor discernment, focusing on fundamentals and purpose of the issue, alongside a "risk-on" sentiment in the small-cap space.
Upcoming IPOs in the Near Future
Several significant IPOs are anticipated in July 2025:
- Anthem Biosciences Limited IPO: Expected mid-July 2025.
- NSDL IPO: Anticipated in July 2025.
- Tata Capital IPO: Received SEBI approval for its ₹17,200 crore IPO, potentially the largest in India for 2025.
- BlueStone Jewellery and Lifestyle IPO: Received SEBI's approval for its ₹1,000 crore IPO, expected early July 2025.
Top Gainers of the Day:
Reasons: Positive Q1 FY26 business update signalling growth momentum, anticipating high single-digit value growth in India business and moderate-high consolidated EBITDA growth, along with easing palm oil prices.
Reasons: Positive investor confidence following leadership changes with the appointment of a new Managing Director and Head-Finance, despite mixed Q4 FY25 financial results.
Reasons: Ratnamani Metals & Tubes Ltd. stock surged on July 7, 2025, due to strong Q1 FY2025 financial results, increased holdings by mutual funds and FIIs, and a trend reversal against a broader market decline, indicating strong investor confidence.
Reasons: General rotation of funds towards stable FMCG stocks and overall positive sentiment in the consumer sector.
Reasons: Strong Q1 FY26 numbers and reported debt reduction.
Reasons: Part of a broader rally in power-sector penny stocks.
Reasons: Strong Q4 and FY25 results with significant increases in net sales and net profit, leading to an upper circuit lock.
Top Losers of the Day:
Reasons: Market decline alongside other Nifty Midcap 150 losers; specific reasons for the decline on this date are not detailed beyond general market sentiment affecting midcap stocks.
Reasons: General market sentiment and potential profit-booking after recent fluctuations; specific reasons for the decline on this date are not readily available.
Reasons: Market decline alongside other Nifty Midcap 150 losers; despite showing steady revenue growth, the net profit in March 2025 saw a fluctuation downwards.
Reasons: General market sentiment and potential profit-booking after hitting a 52-week high recently; specific reasons for the decline on this date are not readily available.
Reasons: General market sentiment and potential profit-booking after recent positive movement; specific reasons for the decline on this date are not readily available.
Reasons: General market sentiment and potential profit-booking; though the stock had a previous dip in April due to missed order targets, the recent decline is part of broader market movements.
RBI Decisions
No new RBI announcements on 7 July, but the market continued to digest the RBI's June 6, 2025, Monetary Policy update, which included a 50 basis point repo rate cut (to 5.50%) and a shift to a "neutral" stance. CPI inflation for FY26 is projected at 3.7%, with real GDP growth for 2024-25 estimated at 6.5%. Despite proactive rate cuts and a positive domestic outlook, global uncertainties outweighed these tailwinds.
Crude Oil Updates
Global crude oil prices fell due to a surprise OPEC+ announcement of a larger-than-expected production increase. Brent crude futures fell 1.2% to $67.50 per barrel. While lower oil prices are generally positive for India, the rupee's depreciation due to FII outflows limited the immediate relief.
US Fed News
No new statements from the US Federal Reserve on July 7, but market participants awaited the upcoming minutes of the US FOMC meeting for clarity on future rate cuts. Resilient US labour market data has tempered expectations for an immediate cut.
Global Geopolitical Factors
Persistent tensions in the Middle East and uncertainty surrounding US tariff policy continued to influence global and domestic market sentiment.
The Indian stock market is poised for a crucial period:
Upcoming Economic Data
- Consumer Price Index (CPI) for June 2025: Scheduled for release on July 14, 2025.
Earnings Season Trends
The Q1 FY26 earnings season is kicking off:
- Tata Consultancy Services (TCS): Expected to declare results on July 10, 2025.
- Wipro: Scheduled to announce Q1 FY26 results on July 17, 2025.
Investor sentiment will heavily hinge on these Q1 results, which could provide catalysts for market movement.
Investor Expectations
The market is in a "wait-and-watch" mode. A "buy-on-dips" strategy is advisable as long as key support levels remain intact. FPI flows are expected to remain choppy, dependent on the US tariff deadline (July 9) and US economic data. The convergence of these major domestic and global triggers will likely dictate the next significant market movement.
The Indian stock market on July 7, 2025, ended flat, masking a cautious underlying sentiment. A clear sectoral rotation favoured defensive sectors like FMCG and energy. While FIIs turned net sellers, DIIs provided strong counter-buying support, highlighting the increasing resilience of the Indian market.
The primary market remained active with mixed IPO responses, and individual stock movements were driven by specific company news. Global uncertainties continue to influence the market, but domestic drivers are providing a crucial buffer.