Markets ended marginally higher on Friday as investors adopted a cautious stance ahead of the July 9 deadline for US-India trade tariff negotiations, with the Nifty closing up 55.70 points or 0.22 per cent at 25,461 after touching an intraday high of 25,458.

The benchmark index opened flat at 25,428 and slipped to a low of 25,331 during the session before recovering to close near the day’s high. The Sensex ended 193.42 points or 0.23 per cent higher at 83,432.89, recovering from an intraday low of 83,015.83.

“The daily chart of the Nifty shows the formation of a hammer pattern, which is generally considered a bullish reversal signal. Key support lies at 25,300, and as long as the index remains above this level, bullish sentiment is expected to persist, with the potential for a swift rebound,” said Rupak De, Senior Technical Analyst at LKP Securities.

After five consecutive sessions of losses, market sentiment remained muted as participants stayed on the sidelines awaiting clarity on trade negotiations between the US and India. President Donald Trump has set July 9 as the deadline for tariff negotiations, creating uncertainty among investors.

Sectoral performance was mixed with pharma, healthcare, IT, and oil & gas outperforming the broader market. Healthcare gained 2 per cent, consumer durables rose 2.6 per cent, and oil & gas advanced 1.5 per cent. However, pressure was evident in metals, consumption, automobiles, and private banks, with realty declining 2.5 per cent, banks falling 1.4 per cent, and FMCG dropping 0.7 per cent.

Among individual stocks, Bajaj Finance emerged as the top gainer, rising 1.74 per cent to close at ₹926.00. Dr Reddy’s Laboratories gained 1.45 per cent to ₹1,310.00, while Infosys advanced 1.30 per cent to ₹1,639.70. Hindustan Unilever gained 1.21 per cent to ₹2,341.30, and ICICI Bank rose 1.20 per cent to ₹1,443.00.

On the losing side, Trent witnessed the steepest decline, falling 11.37 per cent to ₹5,487.00. Tata Steel dropped 1.69 per cent to ₹163.10, while Eicher Motors declined 1.58 per cent to ₹5,625.50. IndusInd Bank fell 0.92 per cent to ₹854.50, and Maruti Suzuki slipped 0.82 per cent to ₹12,647.00.

“The Indian market is experiencing a pause as investors adopt a wait-and-watch strategy ahead of the impending US tariff deadline with mixed global cues. Ongoing FII outflows reflect a risk-off approach, while DII inflows are offering partial support,” said Vinod Nair, Head of Research, Geojit Investments Limited.

Market breadth remained mixed with 2,261 stocks advancing and 1,788 declining on the BSE. A total of 130 stocks hit 52-week highs while 59 touched 52-week lows. Additionally, 272 stocks ended in the upper circuit and 175 in the lower circuit.

Foreign portfolio investors continued their selling spree, with net outflows of ₹5,012.95 crores recorded in the first three days of July. However, domestic institutional investors provided partial support with net buying during the week.

“Markets remained volatile for yet another session and ended with modest gains. The tone was negative in the first half; however, a decent recovery in heavyweight stocks pared all the losses as the day progressed, helping the index close near the day’s high at the 25,461 level,” said Ajit Mishra, SVP Research, Religare Broking Ltd.

On the derivatives front, notable open interest spurts were seen in stocks like TECHM, TRENT, BOSCHLTD, ANGELONE, and BSE. The highest open interest buildup on the call side was observed at the 25,500 strike, while the 25,400 and 25,000 strikes held maximum open interest on the put side. The Put-Call Ratio stood at 0.66, indicating a cautious undertone among market participants.

Global cues remained mixed, with US markets showing strength driven by stronger-than-expected NFP reports and the passing of the GOP’s “One Big Beautiful Bill.” Apple iPhone sales in China rose in the second quarter for the first time in two years, while a trade deal with Vietnam provided additional support to US markets.

“We recommend maintaining a ‘buy on dips’ approach until the Nifty decisively breaks below the 25,200 level, with a strong focus on stock selection. Despite the recent outperformance, the broader indices are still holding up well; however, one should remain cautious, given the potential for profit booking at higher levels,” Mishra added.

Looking ahead, market participants remain focused on the outcome of US-India trade negotiations and the upcoming Q1FY26 earnings season. “Following the recent rally, main indices are hovering near peak valuation levels, limiting further upside, which is highly dependent on Q1 earnings and details of the trade deal,” Nair noted, suggesting that the market’s near-term direction will largely depend on these key events.

Published on July 4, 2025