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EQUITY
Post Session: Quick Review
Jul-02-2025

Indian equity benchmarks end lower on Wednesday, ahead of weekly F&O expiry. After making a slightly positive start, soon indices turned negative as traders turned cautious after U.S. President Donald Trump said he is not considering delaying his July 9 deadline for higher tariffs to resume. Besides, traders were awaited for upcoming corporate earnings. In last leg of trade, markets erased some of their losses but settled in red.

Some of the important factors in today’s trade:

Foreign capital outflow: Some concern came as exchange data showed Foreign institutional investors (FIIs) offloaded equities worth Rs 1,970.14 crore on a net basis on Tuesday. 

Jaishankar holds talks with Japanese counterpart focusing on bilateral cooperation: Traders took note of External Affairs Minister S Jaishankar has held talks with his Japanese counterpart Takeshi Iwaya focusing on preparing grounds for India-Japan prime ministerial summit talks later this year.

India’s gross GST collections grow 6.2% in June: Traders overlooked report that India’s gross Goods and Services Tax (GST) collection for the month of June stood at Rs 1.85 lakh crore, marking a 6.2% increase compared to the same month last year.  

Global front: European markets were trading in green, as traders considered the prospect of Federal Reserve rate cuts and hoped for a positive resolution on trade discussions ahead of completion of 90-day tariff pause on July 9. Asian markets ended mixed after Trump criticized Japan's trade policies and threatened to raise import tariffs on the country to 30 or 35 percent. 

The BSE Sensex ended at 83409.69, down by 287.60 points or 0.34% after trading in a range of 83150.77 and 83935.01. There were 14 stocks advancing against 16 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.18%, while Small cap index down by 0.20%. (Provisional)

The gaining sectoral indices on the BSE were Metal up by 1.44%, Consumer Durables up by 1.22%, Basic Materials up by 0.90%, Telecom up by 0.55% and TECK up by 0.24%, while Realty down by 1.36%, Industrials down by 0.84%, Power down by 0.77%, Bankex down by 0.69% and Capital Goods down by 0.69% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Steel up by 3.63%, Asian Paints up by 2.58%, Ultratech Cement up by 1.60%, Trent up by 1.47% and Maruti Suzuki up by 1.38%. On the flip side, Bajaj Finserv down by 2.10%, Larsen & Toubro down by 1.96%, Bajaj Finance down by 1.48%, HDFC Bank down by 1.25% and Power Grid down by 1.06% were the top losers. (Provisional)

Meanwhile, the Credit rating agency ICRA has reaffirmed a stable outlook for the Indian IT services industry, forecasting a year-on-year revenue growth of 2-3 per cent in US dollar terms for the fiscal year 2025-26. ICRA's analysis, based on a sample of 15 leading IT companies representing approximately 60 per cent of the industry's revenue, indicates that the sector will experience modest revenue growth of 2-3 per cent in FY2026, slightly lower than the 2.9 per cent growth recorded in FY25.

The rating agency said the subdued earnings momentum is largely attributed to uncertainties stemming from the US tariff imposition, which is expected to weigh on IT budget allocations in key markets. Notwithstanding some recovery in operating income rise in recent quarters, the Indian IT services industry is unlikely to witness any material uptick in earnings momentum in FY2026 owing to the uncertainties arising due to US tariff imposition. The US and Europe continue to dominate the Indian IT services revenue landscape, accounting for 80-90 per cent of total industry revenues. Growth in these regions was moderate throughout FY25, with the final quarter witnessing a slight decline. The outlook for Q1 FY26 remains cautious, as the tariff-related uncertainties in the US are anticipated to restrain spending on IT services, thereby impacting industry performance. 

It said hiring is projected to remain low until there is a clearer improvement in demand. However, as the sector adapts to rapid technological advancements, particularly in artificial intelligence (AI) and generative AI (GenAI), the need for skilled professionals is expected to become a critical factor influencing future hiring decisions. Subsequent quarters of FY2026 may see hiring aligned more closely with sectoral growth and technology adoption trends.

ICRA also highlighted the potential benefits of the India-UK Free Trade Agreement (FTA) for the Indian IT services industry. A key provision exempting social security contributions for three years for UK-based temporary Indian employees and their employers is expected to enhance workforce mobility between the two countries. While the financial impact of this measure may be modest, it is seen as a positive step to facilitate talent movement and strengthen business ties.

The CNX Nifty ended at 25453.40, down by 88.40 points or 0.35% after trading in a range of 25378.75 and 25608.10. There were 23 stocks advancing against 27 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tata Steel up by 3.64%, JSW Steel up by 2.94%, Asian Paints up by 2.11%, Ultratech Cement up by 1.85% and Maruti Suzuki up by 1.45%. On the flip side, Shriram Finance down by 2.81%, HDFC Life Insurance down by 2.49%, Indusind Bank down by 2.44%, Bajaj Finserv down by 2.23% and Larsen & Toubro down by 1.91% were the top losers. (Provisional)

European markets were trading higher; France’s CAC rose 93 points or 1.21% to 7,755.59, Germany’s DAX gained 109.07 points or 0.46% to 23,782.36 and UK’s FTSE 100 increased 25.97 points or 0.3% to 8,811.30.

Asian markets ended mixed on Wednesday as US President Donald Trump hinted at higher tariffs on certain countries after the July 9 deadline and Senate Republicans narrowly advanced his tax and spending bill, which risks a $3 trillion deficit before Trump's term concludes. Meanwhile, investors awaited US payroll data and assessed US Federal Reserve Chair Jerome Powell's cautious stance on interest rate cuts. Japanese shares declined after Donald Trump criticized Japan's trade policies and threatened to raise import tariffs on the country to 30-35%. Chinese shares fell, with tech shares leading the decline following profit booking amid ongoing global trade tensions. Hong Kong shares gained as traders returned from a holiday.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,454.79

-2.96

-0.09

Hang Seng

24,221.41

149.13

0.62

Jakarta Composite

6,881.24

-34.12

-0.49

KLSE Composite

1,550.21

8.68

0.56

Nikkei 225

39,762.48

-223.85

-0.56

Straits Times

4,010.77

21.01

0.52

KOSPI Composite

3,075.06

-14.59

-0.47

Taiwan Weighted

22,577.74

24.02

0.11
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