Benchmarks lose steam in trade fog, Nifty ends below 25,500

Equity benchmarks closed with moderate losses today as uncertainty around the India-US trade negotiations kept investor sentiment subdued. Caution dominated trading activity, with participants leaning towards a risk-off stance. The Nifty 50 slipped below the 25,500 mark, dragged down by financial services and PSU bank stocks. On the other hand, metal and consumer durables stocks witnessed buying interest.

Focus is now slowly turning to the Q1 earnings season, which is expected to offer fresh insights into corporate performance and the broader economic outlook.

The S&P BSE Sensex declined by 287.60 points or 0.34% to close at 83,409.69, while the Nifty 50 shed 88.40 points or 0.35% to end at 25,453.40.

Larsen & Toubro (down 1.89%), Bajaj Finance (down 1.48%) and HDFC Bank (down 1.30%) were major drags.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index shed 0.18% and the S&P BSE Small-Cap index declined 0.20%.

The market breadth was negative. On the BSE, 1,809 shares rose and 2,205 shares fell. A total of 158 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, shed 0.65% to 12.45.

India-US Trade Deal Update:

Intense trade talks between India and the US entered their sixth day on Tuesday in Washington, with negotiations hitting a critical phase. According to an official, India is pushing for better market access for its labour-intensive products.

The Indian delegation, led by Special Secretary Rajesh Agrawal from the Department of Commerce, is in Washington to negotiate the terms of an interim trade agreement. Originally planned as a two-day discussion starting June 26, the talks have been extended as both sides work toward a resolution.

The timing is crucial, with the deadline for the suspension of reciprocal US tariffs set for July 9. Both countries are aiming to wrap up negotiations before that date.

Numbers to Track:

The yield on India's 10-year benchmark federal paper slipped 0.10% to 6.289 from the previous close of 6.295.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.6800 compared with its close of 85.5900 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement rose 0.14% to Rs 97,392.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.25% to 96.88.

The United States 10-year bond yield gained 0.75% to 4.283.

In the commodities market, Brent crude for September 2025 settlement rose 78 cents or 1.16% to $67.89 a barrel.

Global Markets:

European market advanced on Wednesday as investors remained focused on the European Central Bank forum in Sintra, Portugal, on Wednesday, with ECB President Christine Lagarde due to address policymakers today.

Most Asian stocks ended lower as investors evaluated recent comments from U.S. Federal Reserve Chair Jerome Powell. Powell stated on Tuesday that the central bank would have already cut interest rates if not for U.S. President Donald Trump's tariff policies.

In Singapore, stocks touched a record high on Wednesday morning, supported by local market strength despite broader global uncertainty.

Overnight in the United States, major indices ended the session with mixed results. The S&P 500 dipped 0.11% and the Nasdaq Composite declined 0.82%. In contrast, the Dow Jones Industrial Average rose 0.91%, reflecting some rotation into blue-chip stocks.

Investor sentiment remained cautious ahead of the July 9 tariff deadline, when reciprocal tariffs are scheduled to be reimposed unless a resolution is reached.

Tesla shares dropped 5.3% after President Trump criticized CEO Elon Musk, claiming he has benefited disproportionately from government subsidies. Trump also called for a review of Tesla's federal support.

The tension follows Musk's public criticism of a large tax and spending bill, which narrowly passed in the Senate on Tuesday. The bill is expected to add approximately 3.3 trillion dollars to the national debt. It now moves to the House of Representatives for further consideration, with President Trump aiming to sign it into law by the July 4 holiday.

Traders are now focused on Thursday's U.S. nonfarm payrolls report, which may influence the Federal Reserve's decision on a potential rate cut in July.

Stocks in Spotlight:

Hero MotoCorp rose 0.28%. The company reported dispatching 553,963 units of motorcycles and scooters in June 2025, marking a 10.03% increase compared to 503,448 units dispatched in June 2024.

Asian Paints rose 2.15%. The Competition Commission of India (CCI) ordered an investigation into the company for allegedly abusing its dominant position in the decorative paints market. The move came following a complaint by Grasim Industries, which has recently entered the sector under its Birla Opus Paints brand. The complaint claimed that the company was discouraging distributors from selling Birla Opus products by offering incentives such as foreign travel and discounts in exchange for exclusivity.

Dreamfolks Services slumped 10.62% after the company announced the closure of certain programs run for Axis Bank and ICICI Bank, effective 1 July 2025. While the contracts with both banks remain in force, the termination of select programs may have a material impact on the company's operations.

JSW Energy declined 1.71%. The company said that its step-down subsidiary, JSW Renew Energy Thirty Seven has signed battery energy storage purchase agreements (BESPA) with Rajasthan Rajya Vidyut Utpadan Nigam (RVUNL) for 250 MW/500 MWh standalone battery energy storage system.

Keystone Realtors jumped 3.70% after the company announced that it has been selected by 8 housing societies as the developer for the large-scale cluster redevelopment project in Andheri West, Mumbai.

RITES jumped 5.68% after bagging two major orders -- a $3.6 million international deal to supply overhauled locomotives to Africa and a Rs 37.81 crore station redevelopment project in India via RITES-Aryan JV.

Adani Ports and Special Economic Zone shed 0.28%. The company said that it has handled 41.3 MMT of cargo volume in June 2025, which is higher by 12% as compared with the volume of 37 MMT handled in June 2024.

Maruti Suzuki India added 1.38%. The company's total sales declined 6.27% to 167,993 units in June 2025 as against 179,228 units sold in June 2024.

V-Mart Retail fell 3.36%. The company's revenue from operations jumped 13% to Rs 885 crore in Q1 FY26 compared with Rs 786 crore in Q1 FY25.

NBCC (India) slipped 2.48%. The company said that it has secured a project management consultancy (PMC) contract worth Rs 354.88 crore from the Forest Development Corporation of Maharashtra (FDCM) for the Gorewada Zoo project.

Paras Defence and Space Technologies jumped 4.25% after its subsidiary, Paras Anti-Drone Technologies has received a Rs 22.21 crore letter of intent (LoI) from France's Cerbair to supply 30 units of its CHIMERA 200 anti-drone system.

South Indian Bank slipped 1.68%. The private lender said that its gross advances jumped 8.02% to Rs 89,201 crore as of 30 June 2025 as against Rs 82,580 crore as of 30 June 2024.

New Listing:

Shares of HDB Financial Services settled at Rs 840.90 on the BSE, representing a premium of 13.64% compared with the issue price of Rs 740.

The scrip was listed at Rs 835, exhibiting a premium of 12.83% to the issue price. The stock has hit a high of Rs 850.45 and a low of Rs 827.50. On the BSE, 78.45 lakh shares of the company were traded in the counter.

Shares of Sambhv Steel Tubes settled at Rs 97.58 on the BSE, representing a premium of 19% compared with the issue price of Rs 82.

The scrip was listed at Rs 110.10, exhibiting a premium of 34.26% to the issue price. The stock has hit a high of Rs 110.89 and a low of Rs 96.17. On the BSE, 71.13 lakh shares of the company were traded in the counter.

IPO Update:

The initial public offer (IPO) of Crizac received bids for 1,15,75,360 shares as against 2,58,36,909 shares on offer, according to stock exchange data at 16:42 IST on Wednesday (2 July 2025). The issue was subscribed 0.45 times.

The issue opened for bidding on Wednesday (2 July 2025) and it will close on Friday (04 July 2025). The price band of the IPO is fixed between Rs 233 and 245 per share. An investor can bid for a minimum of 61 equity shares and in multiples thereof.

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