Markets end lower; HDFC Bank, foreign fund outflows drag

Benchmark indices Sensex and Nifty pared early gains to end lower on Wednesday (July 2, 2025), dragged down by selling pressure in HDFC Bank, L&T and Reliance Industries shares ahead of the impending U.S. tariff deadline.

Flight of foreign capital from markets and a mixed trend in global equities impacted sentiments, traders said.

After the initial euphoria, the BSE Sensex later lost momentum and ended 287.60 points or 0.34% lower at 83,409.69. During the day, it dropped 546.52 points or 0.65% to 83,150.77.

The 50-share NSE Nifty declined by 88.40 points or 0.35% to settle at 25,453.40.

From the Sensex pack, Bajaj Finserv, Larsen & Toubro, Bajaj Finance, HDFC Bank, Bharat Electronics and Kotak Mahindra Bank were among the major laggards.

However, Tata Steel, Asian Paints, UltraTech Cement, and Trent were the biggest gainers.

“Mixed global cues, particularly ahead of the impending tariff deadline, are driving investor caution. Market attention is gradually shifting to crucial Q1 earnings, which have high expectations.

“Underlying trends such as robust macroeconomic fundamentals and increased government expenditure continue to support market resilience. However, being at the breach level of the recent rally, a cautiousness is expected to continue in the near term,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

India’s manufacturing sector growth rose to a 14-month high of 58.4 in June, marked by improved trends in output and new orders, alongside a record upturn in employment, a monthly survey said on Tuesday (July 1, 2025).

The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index – an indicator of sector performance – was 57.6 in May.

Gross GST collection increased by 6.2% to over ₹1.84 lakh crore in June but slipped below the ₹2 lakh crore mark recorded in the previous two months. The GST mop-up stood at Rs 1.74 lakh crore a year ago, as per government data released on Tuesday (July 1, 2025).

In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index and Shanghai’s SSE Composite index settled lower while Hong Kong’s Hang Seng index ended higher.

European markets were trading in positive territory in mid-session deals. The U.S. markets ended on a mixed note on Tuesday (July 1, 2025).

Global oil benchmark Brent crude climbed 0.86% to ₹67.69 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,970.14 crore on Tuesday (July 1, 2025), according to exchange data.

On Tuesday (July 1, 2025), the Sensex rose by 90.83 points or 0.11% to settle at 83,697.29. The Nifty gained 24.75 points or 0.10% to close at 25,541.80.