CHENNAI: Indian markets remained lower on July 2, with losses across most sectors and profit-booking seen in large-cap stocks. BSE Sensex closed at 83,511.31, down 185.98 points or 0.22%, while Nifty50 at 25,490.45, down 51.35 points or 0.20% 12.05 noon.
Markets have been trading sideways following recent gains, with investors awaiting clarity on global trade developments and upcoming corporate earnings, and closely watching macro signals and upcoming earnings for direction.
On the broader trend, Nifty MidCap Index is down 0.29% and Nifty SmallCap Index dropped 0.59%. As far as sectoral movements are concerned, the gainers were Nifty IT (up 0.18%) and Nifty Pharma (up 0.22%). While the losers were Nifty PSU Bank (down 0.67%) and Nifty Realty (down 0.69%).
The stocks like Bharti Airtel, NTPC, Maruti Suzuki, UltraTech Cementand Sun Pharma gained in the mid morning session, and the shares of Bajaj Finserv and Bajaj Finance (Bajaj twins), Eternal, L&T, BEL and HDFC Bank dropped today.
However, the stocks like Asian Paints, IndusInd Bank fell sharply due to corporate developments. Asian Paints dropped around 1% after the Competition Commission of India (CCI) launched an investigation based on a complaint by Grasim Industries. The complaint alleges that Asian Paints imposed restrictive clauses on distributors to prevent them from selling Birla Opus.
IndusInd Bank shares fell 3% intraday after Goldman Sachs downgraded the stock to "sell", calling it a "weak franchise". The brokerage cut its earnings estimates by 25% for FY26 and 17% for FY27, and set a target price of ₹700.
However, Paras Defence and Gabriel India gained significantly on the back of certain corporate activities. Paras Defence gained 2% after France-based CERBAIR expressed intent to buy up to 30 CHIMERA-200 systems from Paras Anti Drone Technologies, a subsidiary of Paras Defence. The deal is valued at around ₹22 crore.
Gabriel India hit the 20% upper circuit for the second day in a row after announcing a company restructuring plan.
Global and Macro Cues
Mixed global markets as investors assessed the potential US–India trade deal ahead of the July 9 tariff deadline. Optimism from recent comments by US officials helped support early trade, but caution returned by the close.
Asian markets remained largely subdued, and US futures were flat amid ongoing tech sector volatility.
However, markets are expected to remain range-bound in the short term as valuations remain stretched and earnings visibility is limited.
Nifty has risen about 15% since March and may test new highs in July, depending on macro developments, especially the US–India trade pact.
July is also expected to be a busy month for IPOs, with an estimated Rs. 20,000 crore (approx. $2.4 billion) in offerings lined up, which may absorb liquidity and impact secondary markets.
According to most analysts, a key near-term trigger for the markets to revive will be developments in global trade policy and the flow of domestic institutional funds.