Indian Markets Close Lower as Financials and Realty Lag; Metals and Autos Resist
Indian stock markets closed lower on Wednesday, July 2, with financials and realty sectors under pressure. However, metals, autos, and healthcare sectors showed resilience, providing some cushion to the market. Investors remain cautious amid global tariff tensions and await key macroeconomic data.
Indian Stock MarketsFinancialsReal EstateMetalsAutosReal EstateJul 02, 2025
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.
Frequently Asked Questions
What caused the decline in Indian stock markets on July 2?
The decline in Indian stock markets on July 2 was primarily due to US President Donald Trump’s firm stance on the tariff deadline, leading to a cautious trading environment and selling pressure in financials and real estate sectors.
Which sectors outperformed in the market?
Sectors that outperformed in the market included metals, autos, and healthcare, supported by strong buying interest.
What impact did the CCI investigation have on Asian Paints?
The CCI investigation into Asian Paints' distribution practices, following a complaint by Grasim Industries, led to a decline in Asian Paints' share price.
Why did IndusInd Bank's stock decline?
IndusInd Bank's stock declined over 3 per cent after Goldman Sachs downgraded the stock to ‘sell,’ citing weak fundamentals and cutting earnings forecasts.
What are investors looking forward to for market direction?
Investors are now focused on upcoming economic data and corporate earnings for clearer market cues, especially in the context of global tariff tensions.
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