On Wednesday, July 2, 2025, the Indian stock market is expected to open marginally higher, mirroring mixed cues from global markets.
Market Performance on July 1, 2025
On Tuesday, July 1, 2025, the Indian benchmark equity indices closed with gains, propelled by share price increases in Reliance Industries Ltd. and HDFC Bank Ltd. The NSE Nifty 50 ended the day up by 24.75 points, a 0.1% increase, closing at 25,541.8, while the BSE Sensex rose by 90.83 points, or 0.11%, to close at 83,697.29. Approximately 1,971 stocks advanced, 1,889 declined, and 150 remained unchanged.
However, foreign portfolio investors (FIIs) continued to be net sellers for the second consecutive day, offloading shares worth ₹1,970.1 crore. Domestic institutional investors (DIIs) also stayed net sellers, offloading equities worth ₹771.1 crore.
Key Stocks and Sectors
Top gainers on July 1 included Apollo Hospitals, Bharat Electronics, Reliance Industries, SBI Life Insurance, and Asian Paints. Conversely, the top losers were Axis Bank, Nestle, Shriram Finance, Eternal, and Trent.
Sector-wise, the FMCG, media, and power sectors experienced declines ranging from 0.4 to 1.3 points, while the PSU Bank index rose by 0.7 points, and the Consumer Durables index gained 0.4 points. The BSE Midcap and Smallcap indices closed with marginal losses.
Global Market Influences
Global cues presented a mixed picture. European indices closed in the red, with the DAX and CAC 40 both falling by 0.42%. U.S. futures also traded lower, with NASDAQ futures down by 0.28% and S&P 500 futures slipping by 0.22%. These factors could potentially weigh on global risk appetite. Investors are also closely monitoring trade negotiations with the U.S..
Nifty 50 Outlook
Several analysts have provided insights on the Nifty 50's expected movement. Nagaraj Shetti from HDFC Securities noted that the near-term trend for Nifty 50 remains positive. Consolidation or weakness could find strong support around the 25,400 - 25,300 levels, potentially leading to a sharp bounce from these lows. A decisive move above 25,700 could pave the way for targets around 26,000 - 26,200 in the near term.
Dr. Praveen Dwarakanath, Vice President of Hedged.in, pointed out that the Nifty 50 index is trading near the upper Bollinger band, signaling strength. He identified support at 25,200 and resistance at 25,900. VLA Ambala, Co-Founder of Stock Market Today, anticipates Nifty 50 to find support between 25,460 and 25,300, with resistance near 25,630 and 25,850.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, observed indecisiveness in the market, with traders awaiting a breakout. For bulls, the immediate breakout zone is 83,900. A successful breach could push Sensex towards 84,200 – 84,400. Conversely, a dismissal of 83,500 could accelerate selling pressure, potentially retesting 83,200 – 83,000.
Key Levels to Watch
Stocks in Focus
Several stocks are expected to be in focus on July 2. Gabriel India's shares reached an all-time high after announcing a scheme of arrangement involving the demerger of Asia Investments' automotive ventures into Gabriel India.
IPO Market
India's IPO market is targeting a $2.4 billion boost in July, potentially making it the busiest month since December. Companies like Credila Financial Services, NSDL, Aditya Infotech, and M&B Engineering are preparing to go public. The HDB Financial Services IPO listing is expected on July 2.
Overall Market Sentiment
The Indian market displays mild optimism, with the Gift Nifty, Nifty 50, and Sensex showing slight gains. A "buy on dips" strategy may be considered, but caution is advised due to overbought stocks.
