Global Overview
Wall Street soared as the S&P 500, Nasdaq, and Dow hit record highs, driven by revived U.S.–Canada trade talks and growing optimism around potential interest rate cuts later this year.
European equities were mixed. The DAX and CAC 40 edged down around 0.2%, while the FTSE 100 lost 0.3%. Meanwhile, the euro continued its rally for the ninth consecutive day, supported by weakening sentiment around the U.S. dollar.

Indian Markets – Day in Focus
Benchmark Indices

• Sensex dropped by approximately 452 points, down 0.54%, ending the day at 83,606.46.
• Nifty 50 declined by 121 points, or 0.47%, closing near 25,517.
• This marked a pause in the rally as both indices snapped a four-day winning streak. The dip was primarily due to profit-booking in financial and auto stocks, especially ICICI Bank, HDFC Bank, Axis Bank, and Kotak Mahindra Bank.

Broader Market Performance

• Small-cap and mid-cap indices rose by 0.7% and 0.8% respectively, showing strong investor interest beyond large-cap stocks.
• PSU banks continued to outperform, while auto stocks underperformed on the back of valuation concerns and global cues.

Stock Highlights

• ICICI Bank fell by around 1%, underperforming peers such as SBI and IndusInd Bank.
• HDFC Bank dropped 0.68%, trading below its 52-week high.
• Torrent Pharma surged nearly 4% after announcing a strategic acquisition of a stake in JB Chemicals.
• Alembic Pharma jumped 9.5% following U.S. FDA approval of a new product.
• ITD Cementation gained around 4% after winning a $67 million marine infrastructure contract.
• Trent Ltd posted a 3% gain, outperforming in a largely muted market.

Currency & Commodities
The Indian Rupee weakened slightly to close near ₹85.75 per USD, as risk sentiment shifted toward safe-haven assets.
Oil prices remained steady, with Brent crude trading at approximately $67.65 per barrel, showing little reaction to domestic market volatility.

Key Takeaways

• Profit-taking phase: After sharp gains in mid-June (Nifty up 3% in June and 15% since March), investors took profits in high-performing sectors like banking and auto.
• Sector rotation: Renewed interest in mid-caps, small-caps, pharma, and PSU banks suggests the rally is broadening.
• Global support: Optimism around U.S. rate cuts and trade progress continues to provide underlying strength to equity markets.
• Watchlist for July: Eyes are now on Q1 corporate earnings, U.S. Fed statements, and India–U.S. trade negotiations.

Market Outlook
The Indian equity market may consolidate or trade sideways in the near term, with Nifty likely to remain in the 25,500–25,800 zone. Market participants are waiting for fresh macroeconomic cues and earnings momentum to decide the next leg of the rally.
The upcoming quarterly results season in July will be critical. Strong earnings could re-ignite the rally, while weak corporate performance may lead to extended profit-booking.

Blog Summary
Even as benchmark indices take a breather, the broader market remains resilient, driven by rotational interest in pharma, infrastructure, and PSU sectors. The global backdrop is supportive, but investor caution is expected in the short term as we approach earnings season. Long-term investors can consider this phase as an opportunity to reassess asset allocation and focus on fundamentally strong sectors.