Markets extended their morning decline during afternoon trading on Friday, with the Sensex falling 97.45 points or 0.12 per cent to 83,142.02 and the Nifty declining 32.90 points or 0.13 per cent to 25,372.40 as of 1.40 PM. The indices opened marginally higher before reversing course amid mixed sectoral performance and continued foreign institutional investor selling.

Trent emerged as the biggest loser on the Nifty 50, plummeting 11.36 per cent to 5,487.50, extending its sharp decline from the morning session. The retail stock’s dramatic fall weighed heavily on market sentiment, with the company shedding over 700 points from its previous close of 6,191.00. Metal stocks also faced pressure, with Tata Steel declining 2.22 per cent to 162.23, JSW Steel dropping 1.14 per cent to 1,034.20 and Eicher Motors falling 1.34 per cent to 5,639.50. SBI Life Insurance added to the decline, down 1.12 per cent to 1,789.90.

Financial services stocks provided some cushion to the broader market decline, with Bajaj Finance leading the gainers with a 1.13 per cent increase to 920.40. Technology stocks also supported the indices, with Wipro rising 1.03 per cent to 269.80, Infosys gaining 0.93 per cent to 1,633.80 and Tech Mahindra up 0.77 per cent to 1,654.50. Hindustan Unilever contributed to the positive momentum, advancing 0.74 per cent to 2,330.60.

Market breadth remained weak across the broader market, with 2,015 stocks declining against 1,904 advancing on the BSE. The Nifty Midcap 100 index underperformed, falling 215.60 points or 0.36 per cent to 59,475.15, while the Nifty Next 50 managed a marginal gain of 0.09 per cent to 68,413.75. The Nifty Bank index remained under pressure, declining 0.04 per cent to 56,771.35, while the Nifty Financial Services index showed resilience with a 0.03 per cent gain to 26,744.20.

Foreign institutional investors continued their selling spree for the fourth consecutive day, offloading ₹1,481 crore on July 3, while domestic institutional investors provided partial support by purchasing 1,333 crore worth of equities. The India VIX remained elevated, reflecting cautious investor sentiment as traders awaited potential announcements regarding an India-US mini trade deal expected over the weekend.

Despite positive cues from Wall Street following strong US jobs data, domestic markets remained range-bound amid tepid earnings growth expectations for FY26 and the upcoming Q1 results season. Analysts maintained their cautious stance, recommending a buy-on-dips approach with fresh long positions only if the Nifty sustains above 25,600 levels.

Published on July 4, 2025