Market Close Snapshot

• Sensex settled at 83,409.69, down 287.6 points (–0.34%)

• Nifty 50 closed at 25,453.40, down 88.4 points (–0.35%) 

Mid-Cap and Small-Cap indices also declined:

• Mid-Cap down ~0.18%

• Small-Cap down ~0.20%

Key Market Drivers

• Trade Tensions: Investor sentiment dipped as the potential U.S.–India trade deal deadline looms (July 9), pressuring financials .

• Financial Stocks Under Pressure: Heavyweights like HDFC Bank, Bajaj Finserv, IndusInd Bank, SBI Card, and Bank of Baroda dragged the indices lower .

• Mid‑ & Small‑Caps Tumble: The Nifty MidCap100 fell ~0.14%, while SmallCap100 dropped ~0.41% .

Sector Highlights

1. IT Stocks Resilience: The IT index climbed ~1.4%, driven by gains in Infosys and other tech names, buoyed by strong U.S. demand .

2. Auto & Metal Show Strength: Tata Steel, JSW Steel, and automotive names saw gains; steel surged ~2% on global demand rebound .

3. Power & Pharma Divergence:

• NTPC rose ~0.3%, outperforming the broader market .

• Dr. Reddy’s fell ~0.4%, underperforming pharma peers like Lupin and Wockhardt .

IPO Watch:

HDB Financial’s Strong Debut
HDB Financial Services debuted at ₹835—12.8% above its IPO price—marking it the year's largest listing and eighth-largest NBFC by market cap .

Technical Outlook & Trading Insights

• Nifty 50 Levels: Immediate support: ≈ 25,450; resistance: ~25,670 .

• Advance–Decline Ratio: Broader market breadth remained weak—1,716 gainers vs. 2,125 losers .

• Volatility Eased: India VIX edged lower to ~12.44, indicating reduced intraday volatility .

What to Watch Next

• U.S.–India Trade Deadline (July 9) – Could significantly influence financial and export-sensitive sectors.

• Earnings Releases – Tech results from Infosys and TCS may shape the near-term market direction.

• Global Cues – Pay attention to U.S. Fed signals, crude oil prices, and currency trends; rupee closed ~₹85.7/$, slightly weaker .

Summary for Investors

• Risk-off sentiment dominates: cautious stance ahead of trade clarity.

• Rotation trend: tech and cyclical sectors outperformed financials and realty.

• Strategic approach: use dips to enter quality IT, metal, or power names; avoid weak financials until tariff clarity emerges.