Synopsis : Indian markets closed lower amid broad-based profit booking and sectoral weakness, with BSE Sensex and Nifty50 dropping slightly on July 2. Investors remain cautious ahead of corporate earnings and global trade developments, keeping markets in a sideways range.
Indian equity markets ended in the red on July 2 as investors booked profits following recent highs, awaiting clarity on global trade talks and upcoming corporate earnings. The BSE Sensex fell 185.98 points or 0.22% to close at 83,511.31, while the Nifty50 dropped 51.35 points or 0.20% to settle at 25,490.45.
The broader market reflected a similar mood, with the Nifty MidCap Index down 0.29% and the Nifty SmallCap Index declining 0.59%. Sectorally, Nifty IT (+0.18%) and Nifty Pharma (+0.22%) were among the few gainers, while Nifty PSU Bank (-0.67%) and Nifty Realty (-0.69%) led the losers.
Large-cap stocks witnessed profit booking with Bajaj Finserv, Bajaj Finance, L&T, BEL, and HDFC Bank trading lower. However, Bharti Airtel, NTPC, Maruti Suzuki, UltraTech Cement, and Sun Pharma held gains during the session.
Asian Paints shares slipped around 1% after the Competition Commission of India (CCI) launched an investigation following a complaint from Grasim Industries over restrictive distributor clauses. IndusInd Bank dropped 3% intraday after Goldman Sachs downgraded it to “sell,” citing concerns over its franchise strength and cutting FY26 and FY27 earnings estimates.
On the positive side, Paras Defence rose 2% following an announcement that France-based CERBAIR intends to purchase up to 30 CHIMERA-200 systems from its subsidiary in a deal worth approximately ?22 crore. Gabriel India hit the 20% upper circuit for the second consecutive day following its restructuring announcement.
Global cues remained mixed as investors evaluated the potential US–India trade deal ahead of the July 9 tariff deadline. Early optimism in global markets faded by the close, with Asian indices subdued and US futures flat amid ongoing tech sector volatility.
Markets are expected to remain range-bound in the short term due to stretched valuations and limited earnings visibility. However, analysts indicate that the Nifty, which has gained around 15% since March, could test new highs in July if macro developments, including the US–India trade deal, turn favorable.
July is set to be an active month for primary markets with around ?20,000 crore (~$2.4 billion) worth of IPOs lined up, potentially absorbing liquidity from the secondary markets. Investors will closely watch the upcoming earnings season, domestic institutional flows, and global trade policy signals for cues on the next directional move.
Disclaimer : This article is for informational purposes only and does not constitute investment advice. Please consult a registered financial advisor before making investment decisions.
