Stock Market Live Update: Sensex, Nifty 50 Rise on July 3, 2025, Amid India-US Trade Deal Optimism

Indian stock market opens higher with GIFT Nifty signaling gains, but banking stocks drag as investors eye Q1 FY26 results.

A Positive Start for Indian Stock Market

On July 3, 2025, the Indian stock market opened with gains, driven by positive global cues and optimism surrounding a potential India-US trade deal. The BSE Sensex rose 383.61 points, or 0.46%, to 83,793.30, while the NSE Nifty 50 climbed 110.30 points, or 0.43%, to 25,563.70 by mid-session. However, late selling pressure erased some gains, with the Sensex falling over 600 points from its intraday high of 83,850, settling at 83,239.47, down 170.22 points (-0.20%). The Nifty 50 closed at 25,405.30, down 48.10 points (-0.19%), reflecting caution in banking and financial stocks. GIFT Nifty futures, trading at 25,574, up 43 points (+0.17%), signaled a mildly positive start, aligning with Asian market gains.

Key Market Movers and Sector Performance

The stock market saw mixed performances across sectors:

• Top Gainers: Asian Paints (+3%), Tata Steel (+2%), Infosys, Power Grid, and ICICI Bank led the Nifty 50, driven by strong consumption, metal, and IT sector demand. Tata Steel gained on lower coking coal prices from China, while IT stocks benefited from global tech demand.
• Top Losers: Kotak Mahindra Bank (-2.01% to ₹2,125.40), Bajaj Finance, BEL, and Trent dragged the indices, with PSU Bank and Financial Services sectors under pressure. Nifty Bank fell 0.80% to 56,999.20, snapping a six-day gaining streak.
• Sectoral Trends: Nifty Auto, IT, and Metal rose 0.3–0.7%, while Nifty Realty (-1.44%) and PSU Bank were top losers. Nifty Midcap 150 traded flat at 21,930.50, and Nifty Smallcap 100 fell 0.26%.

The Nifty Next 50 index closed at 68,729.80, down 200.40 points (-0.29%), with a high of 69,144.85 and a low of 68,335.15. Mankind Pharma (-0.96% to ₹2,361.70) and Coromandel International (-0.95% to ₹2,251.50) saw volume spikes but ended lower.

Market Sentiment and Global Cues

Investor sentiment was shaped by several factors:

• India-US Trade Deal Optimism: Hopes for a trade agreement before the July 9, 2025, US tariff deadline lifted market mood, following a US-Vietnam deal. However, FII selling pressure and uncertainty around US trade policies triggered late sell-offs.
• Global Markets: Asian markets were mixed, with S&P and Nasdaq hitting new highs, supporting positive cues. GIFT Nifty futures rose to 25,579, a 33-point premium over the previous close, signaling a bullish opening.
• Technical Outlook: Analysts like Anand James from Geojit Financial Services noted Nifty 50’s support at 25,350–25,300, with potential upside to 25,740–25,850 if it breaks 25,610. Bank Nifty support lies at 56,000–55,500, per Bajaj Broking. A bearish candle on daily charts suggests caution below 25,500.

X posts reflected bullish sentiment early in the session, with @tradeswift predicting a positive opening based on GIFT Nifty at 25,575 and Nifty resistance at 25,490–25,560. However, @ETNOWlive noted a 500-point Sensex drop from its high, highlighting banking and metal sector weakness.

Stocks to Watch

• IndusInd Bank: Fell 3% after Goldman Sachs downgraded to “Sell” from “Neutral,” citing credit cost concerns.
• Tamilnad Mercantile Bank: Reported a 9.86% year-on-year rise in total business to ₹98,923 crore for Q1 FY26, boosting sentiment.
• InterGlobe Aviation and Max Healthcare: Likely to enter the Nifty 50 in the September 2025 reshuffle, per Nuvama.
• Bank of Maharashtra: Saw 2.48 million shares change hands in a block trade, per Bloomberg.

Investor Outlook

For Indian investors, the stock market’s volatility offers opportunities:

• Buy on Dips: Analysts suggest buying Nifty 50 near 25,200–25,300, with a potential rally to 26,500 in July, per Economic Times. Tata Steel and Infosys are recommended for momentum.
• Banking Sector Caution: Nifty Bank’s structural support at 56,000–55,500 suggests limited downside, but Kotak Mahindra Bank and IndusInd Bank face pressure. Monitor ICICI Bank for recovery.
• Q1 FY26 Results: With the earnings season starting next week, focus on IT (e.g., HCL Tech, July 16) and banking stocks for performance cues.
• Technical Levels: Nifty support at 25,350–25,300; resistance at 25,610–25,850. Bank Nifty may target 60,000 by Diwali, per SBI Securities.

Risks to Watch

• FII Outflows: Continued foreign institutional investor selling, driven by US tariff uncertainties, could cap gains.
• Sector Weakness: Banking, realty, and PSU banks face profit-booking risks after recent rallies.
• Global Cues: US trade policies and crude oil prices (softening) will influence sentiment.

A Dynamic Stock Market Landscape

The Indian stock market on July 3, 2025, reflected cautious optimism, with Sensex and Nifty 50 buoyed by India-US trade deal hopes but tempered by banking sector weakness. As Q1 FY26 results loom, investors should focus on metal, IT, and auto sectors for opportunities while monitoring FII flows and global cues. With GIFT Nifty signaling resilience, the market remains poised for selective gains.

Stay updated on Sensex, Nifty 50, and stock market trends for smarter investment decisions.

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