On Wednesday, July 9, 2025, the Indian stock market saw range-bound trading as a result of conflicting global news and uncertainty about a potential trade deal between the US and India. Investor apprehension was further heightened by the impending start of the Q1 FY26 earnings season.
Diverse Worldwide Cues:
Investors were uneasy when US President Donald Trump proposed imposing severe taxes on pharmaceutical imports from India and other nations.
Asian markets are going in a mixed manner, while European markets are slightly higher.
Performance of the Domestic Market:
Investor hesitation was evident as the NSE Nifty 50 and the BSE Sensex both finished in a narrow range.
The performance of small-cap equities outperformed that of the big indices.
Sectoral performance varied, with the media, pharmaceutical, and FMCG segments reporting increases and the real estate and metals segments reporting declines.
Key Occurrences and Market Drivers:
US Tariff Proposals: Trump issued a warning when he threatened to slap tariffs on a number of industries, including semiconductors, copper, and pharmaceuticals.
India-US Trade Agreement Uncertainty: Investors were uneasy due to the lack of clarity around the trade agreement between the US and India.
Q1 FY26 Earnings Season: Market volatility was exacerbated by the upcoming earnings season, which started on July 10 with TCS’s reports.
Institutional Investor Activity: Domestic Institutional Investors (DIIs) were expected to provide support, but Foreign Institutional Investors (FIIs) were the net sellers.
Commodity Prices: Following trade concerns, the price of gold declined as the price of crude oil weakened globally.
Mutual Fund Inflows: Flexi Cap, small-cap, and mid-cap funds saw the most active interest in June’s sharp increase in equity mutual fund inflows.
Stocks to Keep an Eye on:
Crizac Ltd.: The company’s shares, which provide solutions for student recruiting, were floated at a premium of over 15%.
Vedanta Ltd.: Short-seller Viceroy Research accused the corporation of accounting errors, which caused the stock to drop.
Hindustan Zinc: Following the Vedanta announcement, the company’s stock also declined.
Delhivery: Following Motilal Oswal Financial Services’ optimistic growth prediction for the business, shares increased.
Lupin: Following the company’s announcement of a licence and supply deal with Zentiva Group, the shares of Lupin traded at a flat price.
G R Infraprojects: After a subsidiary received the date for a new highway contract from NHAI, stocks rose.
Disclaimer: This blog is intended solely for educational purposes. Any stock references are provided as illustrative examples and should not be construed as investment advice or recommendations.
