Indian Markets Close Lower as Financials and Realty Lag; Metals and Autos Resist
Indian stock markets extended their risk-off stance on Wednesday, July 2, with benchmark indices trading cautiously amid US President Donald Trump’s firm stance on the tariff deadline. After touching an intraday high of 83,935.29, the BSE Sensex settled at 83,409.69, down 287.6 points or 0.34 per cent. The NSE Nifty50 also closed lower by 88.45 points or 0.35 per cent at 25,453.4.
Broader markets showed mixed trends with midcaps and smallcaps under pressure. Among broader market indices, the Nifty Midcap100 index slipped 0.14 per cent while the Nifty Smallcap100 declined 0.41 per cent, reflecting cautious investor sentiment across segments.
Sector performance was mixed, with metals, autos, and healthcare outperforming. The Nifty Metal, Consumer Durables, Auto, IT, Pharma, and Healthcare indices closed in positive territory, supported by strong buying interest. Conversely, sectors such as Realty, Financial Services, Banking, Oil & Gas, and Media faced selling pressure and ended the day lower.
Financials and realty stocks led the decline with names like Shriram Finance, Bajaj Finserv, IndusInd Bank, Bajaj Finance, and L&T among the top losers on the Nifty. Meanwhile, metal stocks including Tata Steel and JSW Steel and auto companies such as Maruti Suzuki and Hero MotoCorp added marginal gains, providing some cushion to the broader market.
The cautious mood extended beyond large caps, with both BSE MidCap and SmallCap indices ending in the red. Investors remain watchful of global cues and await key macroeconomic data and corporate earnings for further direction.
Asian Paints shares slipped after the Competition Commission of India (CCI) launched an investigation into the company’s distribution practices following a complaint by Grasim Industries. IndusInd Bank declined over 3 per cent after Goldman Sachs downgraded the stock to ‘sell,’ citing weak fundamentals and cutting earnings forecasts.
On the upside, Paras Defence gained 2 per cent as France-based CERBAIR plans to acquire anti-drone systems worth Rs 22 crore from its subsidiary. Gabriel India continued its rally, hitting the upper circuit for the second consecutive session following restructuring news.
Indian markets closed lower amid persistent risk aversion, especially in rate-sensitive and cyclical sectors. However, resilience in metals, autos, and healthcare offered some support. Investors are now focused on upcoming economic data and corporate earnings for clearer market cues.
