The Nifty ends 88 points lower, while the Sensex was down by 288 points.
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, July 2, 2025: Today, the benchmark indices witnessed profit booking at higher levels. The Nifty ends 88 points lower, while the Sensex was down by 288 points. Among sectors, Metal index outperformed rallied 1.44 percent, whereas the Reality index lost the most, shedding 1.40 percent. Technically, after a muted open, the market has been consistently facing selling pressure at higher levels. On daily charts, it has formed a bearish candle, and on intraday charts, it is holding a lower top formation, which is largely negative.
We are of the view that, as long as the market is trading below 25,500/83500, the weak sentiment is likely to continue. On the lower side, the market could retest the level of 25,300/83000. Further sell-offs may also continue, which could drag the market down to 25,225/82800. On the flip side, if the market rises above 25,500/83500, it could bounce back up to 25,600–25,670/83800-84000.
Gaurav Garg, Lemonn Markets Desk, adds:
“Indian equity benchmarks ended lower on Tuesday, with the Nifty slipping below the 25,500 mark, as profit-booking in key financials and weak global cues weighed on sentiment. At close, the BSE Sensex declined 287.60 points or 0.34% to 83,409.69, while the Nifty 50 fell 88.40 points or 0.35% to 25,453.40. Market breadth was negative, with 1,716 stocks advancing, 2,125 declining, and 167 remaining unchanged on the NSE.
Sectoral Trends:
● The Nifty Metal Index led the gains, rising 1.4%, driven by strength in global metal prices.
● Consumer Durables added 1%, supported by demand optimism ahead of the festive season.
● On the downside, PSU Banks, Capital Goods, Realty, Media, and Power indices declined between 0.4% to 1.4%, reflecting weakness in rate-sensitive and infrastructure- linked sectors.
Broader markets also saw marginal weakness, with the BSE Midcap and Smallcap indices each shedding 0.2%. U.S. economic data was stronger-than-expected, with the ISM Manufacturing PMI and JOLTS job openings surpassing forecasts, reinforcing expectations of a resilient U.S. economy. Trade tariff uncertainty also looms, with the July 9 deadline for potential U.S. tariff decisions approaching. Market sentiment remains cautious as investors await further statements from U.S. President Donald Trump. U.S. 10-year bond yields have also firmed, further weighing on emerging market currencies.
The USD INR spot is expected to trade within a range of 85.45 to 86.05 in the near term. Traders will closely monitor upcoming U.S. data releases, especially the ADP Non-Farm Employment report, for cues on the dollar's trajectory.”
