The Indian stock market on Tuesday, July 8, 2025, continued to exhibit cautious trading, with benchmarks closing marginally higher despite persistent global uncertainties. The ongoing concerns surrounding the India-US trade deal and fresh US tariffs on other nations influenced investor sentiment, while positive corporate updates and domestic institutional buying provided some stability.
Table of Contents
- Key Market Indices Performance
- Broader Market Mixed, Sector Rotation Continues
- 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 a volatile session, opening lower and then recovering:
- The BSE Sensexclosed at 83,712.51 points, up by +270.01 points (0.32%).
- The Nifty 50 settled at 25,522.50 points, with a gain of +61.20 points (0.24%).
Both indices opened lower due to continued concerns over the India-US trade agreement and fresh global tariff announcements. The India VIX, the volatility index, eased by 0.6% to approximately 12.31, indicating a slight reduction in market nervousness compared to the previous day.
While the main indices showed some recovery, the broader market remained mixed, with continued focus on selective buying:
- Market breadth was cautious, with advancements slightly outweighing declines.
- The NSE MidCap 100 index ended marginally higher, while the NSE SmallCap 100 index also saw slight gains.
This suggests that despite overall volatility, investors are showing interest in specific segments of the broader market, continuing the trend of selective stock picking.
Sectoral performance remained varied, with certain sectors showing strength while others faced headwinds:
Top Performing Sectors:
- Nifty MNC index: Rose by 0.49%, with constituents like Hindustan Unilever, Cummins India, and Britannia Industries gaining over 3%.
- Nifty FMCG: Continued its positive momentum.
- Textile stocks: Surged by up to 7% after the US announced a 35% tariff on imports from Bangladesh, which could potentially benefit Indian textile exports despite India also facing tariffs. Key gainers included Gokaldas Exports Ltd (up 2.73%) and KPR Mill Ltd (up 3.60%).
This outperformance indicates a sustained rotation of funds towards stable, consumer-oriented sectors and those benefiting from shifting global trade dynamics.
Declining Sectors:
- Nifty Bank: Closed in the red at 56,949.20, losing 0.15% (82.7 points), signalling some profit booking in the banking space.
- Nifty Metal: Witnessed some pressure.
Several significant domestic and global developments shaped market sentiment:
- India-US Trade Deal Uncertainty The looming July 9 deadline for the Donald Trump administration's reciprocal tariff suspension continued to be a key market driver. India aims for a complete withdrawal of the 26% tariff on its goods, while the US seeks broader market access in sectors like agriculture and dairy. Officials indicated that a "mini trade deal" focusing on goods might be finalised soon, potentially excluding sensitive sectors.
- New US Tariffs on 14 Nations The US announced new tariffs, including a 35% tariff on imports from Bangladesh, effective August 1. This development had a mixed impact, boosting Indian textile stocks on potential trade diversion but adding to overall global trade tensions.
Corporate Earnings and Business Updates
- Kotak Mahindra Bank: Shares surged 3.72% after a strong Q1 FY26 business update, reporting double-digit growth in deposits and advances, signaling robust credit growth and improved Cash Deposit Ratio (86.70%).
- Titan Company: Its consumer businesses grew by 20% year-on-year in Q1 FY26, despite gold price volatility. Domestic jewellery operations rose 18%, and the watches segment saw a 23% increase. Emerging businesses like fragrances and women's bags also showed strong growth.
- Adani Power: Successfully completed the acquisition and resolution plan of Vidarbha Industries Power Ltd (VIPL) for ₹4,000 crore. This acquisition of the 600 MW coal-fired plant increases Adani Power's operating capacity to 18,150 MW.
SEBI Proposed Relaxations for AMCs SEBI issued a consultation paper proposing significant amendments to Regulation 24(b) of SEBI (Mutual Funds) Regulations, 1996. The proposals aim to relax "broad-basing" requirements for pooled assets, permit AMCs to engage in expanded business activities, and redefine norms for resource sharing, potentially boosting the Asset Management industry.
Bharat Bandh on July 9, 2025 A nationwide Bharat Bandh called by 10 central trade unions and farmers' organizations for July 9, 2025, is expected to protest against government policies. While schools, colleges, and government offices are likely to remain open, disruptions in banking, public transport, and postal services are anticipated.
The movements of Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) remained critical indicators:
- Foreign Institutional Investor (FII) Activity: FIIs were net buyers today, with a net purchase of ₹321.16 crore in the cash market. However, they remained net sellers in the index futures segment, selling contracts worth ₹668.04 crore.
- Domestic Institutional Investor (DII) Flows: DIIs continued their strong buying momentum, recording a significant net purchase of ₹1,853.39 crore in equities in the cash market.
Impact on Market Sentiment: The robust DII buying continued to act as a crucial counter-balance to FII activity, providing essential market support. While FIIs showed mixed signals, the overall domestic liquidity remained healthy.
The Indian primary market witnessed continued activity and investor interest:
Key IPOs and Listings Today/Recent
- Travel Food Services IPO: This mainboard IPO, which opened on July 7, continued to receive subscriptions today. It aims to raise ₹2,000 crore through an Offer for Sale (OFS), with a price band of ₹1,045 to ₹1,100 per share.
- GLEN Industries IPO: This SME IPO opened for subscription today, July 8. It aims to raise ₹63.02 crore through a fresh issue of 64.96 lakh equity shares, with a price band of ₹92–97 per share. The company manufactures eco-friendly packaging products.
- Cryogenic OGS Limited IPO: This SME IPO, which closed yesterday, aims to list on July 10, 2025. It saw strong oversubscription, indicating robust investor interest in the SME segment.
Individual Stock Movers
- PC Jeweller (PCJEWELLER): Continued its rally, gaining over 10% yesterday due to strong Q1 FY26 numbers and debt reduction.
- Godha Cabcon & Insulation (GODHA): Closed up 4.62% (upper circuit) on strong FY25 revenues.
- Jaiprakash Power Ventures (JPPOWER): Gained 6.8% yesterday.
Top Gainers of the Day (Based on available data from July 8, 2025, with carry-over sentiment):
Kotak Mahindra
- Last Traded Price: ₹2,224.50
- Change: +₹74.70
- Percentage Change: +3.47%
- Reason: This strong jump was primarily driven by a positive Q1 business update. Kotak Mahindra Bank reported a healthy 12.9% year-on-year increase in average total deposits, signaling robust financial health and investor confidence in its growth trajectory.
Eternal
- Last Traded Price: ₹263.50
- Change: +₹4.95
- Percentage Change: +1.91%
- Reason: While specific news for "Eternal" is not detailed, such gains in companies, especially those outside of the primary large-cap indices, often stem from positive company-specific developments, strong buying interest in their niche sector, or a spillover of positive market sentiment that favors broader market participation.
Asian Paints
- Last Traded Price: ₹2,484.60
- Change: +₹41.80
- Percentage Change: +1.71%
- Reason: As a leading player in the consumer durables and FMCG space, Asian Paints likely benefited from the continued rotation of funds towards stable and defensive consumer-oriented stocks. This trend is often observed during periods of broader market caution, as investors seek companies with consistent demand and strong brand recall.
NTPC
- Last Traded Price: ₹343.20
- Change: +₹5.75
- Percentage Change: +1.70%
- Reason: NTPC, being a major power sector entity, likely gained from positive sentiment surrounding the energy and infrastructure sectors. There's a broader focus on government expenditure and initiatives in these areas, which can boost prospects for large public sector undertakings (PSUs) like NTPC.
Grasim
- Last Traded Price: ₹2,820.80
- Change: +₹41.70
- Percentage Change: +1.50%
- Reason: Grasim Industries is a diversified conglomerate with interests spanning cement, viscose, chemicals, and financial services. Its rise could be attributed to a positive outlook across its varied business segments, particularly robust performance in its core manufacturing operations, or a general uplift in industrial and infrastructure-related stocks due to favorable economic indicators.
Top Losers of the Day (Based on available data from July 8, 2025, with carry-over sentiment):
Titan Company
- Last Traded Price: ₹3,441.30
- Change: -₹224.80
- Percentage Change: -6.13%
- Reason: Despite its jewellery segment reporting an 18% growth, Titan's shares tumbled because its overall Q1 business update failed to impress D-Street, as total revenue growth missed Street expectations. This highlights the market's detailed scrutiny of corporate updates, where overall performance is weighed heavily against projections, even if individual segments perform well.
Dr Reddy's Labs
- Last Traded Price: ₹1,283.80
- Change: -₹26.70
- Percentage Change: -2.04%
- Reason: The pharmaceuticals sector, in general, was among the declining sectors today. Dr Reddy's Labs' fall is likely influenced by this broader negative sentiment towards the pharma sector, potentially due to profit-booking or specific industry headwinds not detailed in the provided context.
Cipla
- Last Traded Price: ₹1,488.30
- Change: -₹22.20
- Percentage Change: -1.47%
- Reason: Similar to Dr Reddy's Labs, Cipla's decline falls in line with the underperformance of the Nifty Pharma index, which experienced declines of over 1%. This indicates sector-specific selling pressure.
Bajaj Auto
- Last Traded Price: ₹8,339.50
- Change: -₹124.00
- Percentage Change: -1.47%
- Reason: The Nifty Auto index was among the key losers today, experiencing declines of over 1%. Bajaj Auto's drop reflects this broader weakness in the automotive sector, possibly due to concerns about consumer demand or rising input costs.
Trent
- Last Traded Price: ₹5,440.00
- Change: -₹59.00
- Percentage Change: -1.07%
- Reason: Trent's decline is likely a result of profit-booking after its recent strong rally, as it was listed as a significant gainer just yesterday. It's common for stocks that see sharp gains to undergo a correction as investors lock in profits.
RBI Decisions The market continued to assimilate the RBI's June 6, 2025, Monetary Policy update, which saw a 50 basis point repo rate cut (to 5.50%) and a "neutral" stance. Inflation for May 2025 eased to 2.82%, the lowest since February 2019, further bolstering hopes for continued accommodative policy. The RBI also announced an auction of ₹25,000 crore of dated government securities on July 11, 2025.
Crude Oil Updates Global crude oil prices remained relatively stable, with Brent crude futures closing the week at $68.30 per barrel. While lower prices are generally favourable for India, the rupee's depreciation due to FII outflows continues to impact the import bill.
US Fed News Market participants are awaiting the upcoming minutes of the US FOMC meeting for clearer indications on future interest rate decisions. Resilient US labor market data has continued to temper expectations for immediate rate cuts.
Global Geopolitical Factors Persistent tensions in the Middle East and the evolving US tariff policy continue to inject caution into global markets, influencing FII flows into emerging economies like India.
The Indian stock market is entering a crucial period with several key events on the horizon:
Upcoming Economic Data
- Consumer Price Index (CPI) for June 2025: Scheduled for release on July 14, 2025. This will be a key indicator for inflation trends and future RBI policy.
Earnings Season Trends The Q1 FY26 earnings season is gaining momentum and will heavily influence market direction:
- Tata Consultancy Services (TCS): Expected to declare results on July 10, 2025. Analysts anticipate tepid growth, with revenue potentially declining 0.6% in constant currency terms due to the tapering down of the BSNL deal.
- Wipro: Scheduled to announce Q1 FY26 results on July 17, 2025.
- More Q1 FY26 earnings from various sectors will be released throughout July, providing crucial insights into corporate performance and economic health.
Investor Expectations The market is in a "wait-and-watch" mode. Analysts suggest a "buy-on-dips" strategy as long as key support levels remain intact. FPI flows are expected to remain volatile, influenced by global trade developments (particularly the July 9 US tariff deadline) 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 8, 2025, reflected continued caution amidst global trade uncertainties. While benchmarks ended slightly positive, underlying sentiment remained mixed with selective buying. Strong domestic institutional investor activity provided crucial support, offsetting some of the FII outflows. The primary market continued to be active with new IPOs, and corporate updates from key players like Kotak Mahindra Bank and Titan Company provided positive catalysts. Looking ahead, the market will closely monitor the US tariff situation, upcoming Q1 earnings, and domestic inflation data for cues on its next move.