Benchmarks snap 4-day streak, Nifty holds 25,500 mark

The headline equity benchmarks ended with modest losses today, snapping a four-day winning streak. While easing geopolitical tensions and optimism around US-India trade offered some support, investors remained cautious ahead of the upcoming U.S. tariff deadline on July 9. Private banks and financial services stocks saw selling pressure, dragging indices lower. In contrast, PSU banks and consumer durables stocks attracted buying interest.

The S&P BSE Sensex tanked 452.44 points or 0.54% to 83,606.46. The Nifty 50 index fell 120.75 points or 0.47% to 25,517.05. In the previous four consecutive sessions, the Sensex jumped 2.64% while the Nifty rose 2.67%.

ICICI Bank (down 1.09%), Reliance Industries (down 1.02%) and HDFC Bank (down 0.68%) were major drags.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.67% and the S&P BSE Small-Cap index jumped 0.81%.

The market breadth was positive. On the BSE, 2,362 shares rose and 1,750 shares fell. A total of 178 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 3.20% to 12.79.

Economy:

India's industrial output growth fell to a nine-month low of 1.2% in May 2025, dragged down by weak performance in the manufacturing, mining, and electricity sectors, data released by the National Statistical Office (NSO) on Monday showed. The factory output, measured by the Index of Industrial Production (IIP), had grown 6.3% in May 2024, while the April 2025 estimate has been revised to 2.6%, slightly down from the earlier 2.7%. According to the data, manufacturing ' which forms over three-fourths of the IIP ' grew 2.6% in May, down from 5.1% a year ago. Mining output shrank 0.1%, reversing a 6.6% expansion in May last year. Electricity generation saw a sharp contraction of 5.8% compared to a robust 13.7% growth a year ago.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.13% to 6.321 from the previous close of 6.310.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.7900 compared with its close of 85.5050 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement rose 0.59% to Rs 96,031.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.20% to 97.21.

The United States 10-year bond yield lost 0.09% to 4.254.

In the commodities market, Brent crude for August 2025 settlement fell 13 cents or 0.19% to $67.64 a barrel.

Global Markets:

US Dow Jones futures surged 235 points, signaling a strong start for Wall Street after last week's upbeat finish.

European stocks declined on Monday as investors awaited the latest inflation data from Italy and Germany.

Most Asian shares ended higher, as investors digested details of trade negotiations along with a series of data releases, including South Korea and Japan's industrial output figures for May, and China's purchasing managers' index readings for June.

In China, manufacturing activity contracted for the third straight month in June. The official manufacturing PMI inched up to 49.7 from May's 49.5, still below the 50-mark that separates growth from contraction. Meanwhile, the non-manufacturing PMI, which captures activity in services and construction, ticked up to 50.5 from 50.3. With the economy continuing to lose steam, hopes are building for fresh stimulus measures from Beijing.

South Korea's industrial production index fell 2.9% in May on a seasonally adjusted basis compared to the previous month, according to data released by Statistics Korea on Monday.

Japan's industrial output rose 0.5% in May compared to the previous month, according to data from the Ministry of Economy, Trade and Industry (METI), falling short of the median market forecast of a 3.5% increase.

Back in the US, Friday was a blockbuster session for equities. The S&P 500 closed at its highest level in over four months, gaining about 0.5%. The Nasdaq Composite also reached an all-time high, closing at a record after adding about 0.5%, while the Dow Jones Industrial Average rose nearly 1%. All three indices have made a solid comeback this month after April's slump, which was triggered by escalating trade tensions.

Adding a political twist to the mix, the US Senate on Saturday narrowly voted 51-49 to begin debate on President Trump's sweeping One Big Beautiful Bill. This legislation rolls together tax cuts, spending shifts, and border security measures. While the bill still faces a turbulent legislative journey, the vote kicks off up to 20 hours of debate. However, the Congressional Budget Office estimates it could swell the federal deficit by a staggering $3.3 trillion over the next ten years.

Stocks in Spotlight:

Sigachi Industries tumbled 11.58% after media reports emerged of a major explosion and fire at the company's pharmaceutical manufacturing facility in the Pashamylaram industrial area of Telangana.

ZEN Technologies rose 3.05% on securing its 54th Indian patent, titled 'Single ILU Long Pass Filter', marking a significant breakthrough in laser-based military training systems. This patent also represents the company's 82nd patent globally.

Alembic Pharmaceuticals surged 7.28% after the company received final approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Doxorubicin Hydrochloride Liposome Injection.

Karnataka Bank declined 5.75% after the bank's board has accepted the resignation of managing director (MD) & chief executive officer (CEO), Srikrishnan Hari Hara Sarma, effective from 15 July 2025. Additionally, the company's board has approved the appointment of Raghavendra Srinivas Bhat as the chief operating officer (COO), effective from 2 July 2025.

Waaree Energies rallied 6.47% after the firm's wholly owned subsidiary, Waaree Solar Americas received an order to supply 540 MW of solar modules from a renowned customer located in United States.

Hind Rectifiers added 2.16% after the company secured a supply order worth Rs 127 crore from Indian Railways. Meanwhile, the company received another supply order worth Rs 101 crore from Indian Railways.

ITD Cementation India jumped 5.03% after the company secured an international marine contract worth $67.4 million (approximately Rs 580 crore) for jetty construction works related to the Ruwais LNG project in Abu Dhabi.

Aimtron Electronics zoomed 8.93% after the firm has entered into a Rs 97.55 crore original design manufacturing (ODM) agreement with a US-based infrastructure company to develop transformer-free uninterruptible power supply (UPS) systems.

VRL Logistics added 1%. The company announced that its board will meet on Friday, 04 July 2025, to consider and recommend the capitalization of reserves & retained profits for issuance of bonus shares.

NLC India rose 0.72%. The company informed that it has received a Letter of Award (LoA) from NTPC to develop a 450 MW interstate transmission system (ISTS)-connected wind-solar hybrid power project.

IPO Update:

The initial public offer (IPO) of Indogulf Cropsciences received bids for 34,60,53,600 shares as against 1,33,65,710 shares on offer, according to stock exchange data at 16:51 IST on Monday (30 June 2025). The issue was subscribed 25.89 times.

The issue opened for bidding on Thursday (26 June 2025) and it will close on Monday (30 June 2025). The price band of the IPO is fixed between Rs 105 and 111 per share. An investor can bid for a minimum of 135 equity shares and in multiples thereof.

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