Key Changes in Indian Stock Market:

The Indian stock market saw several key developments overnight, influencing investor sentiment and the overall market outlook. Here’s a summary of the major changes:

Key Changes in Indian Stock Market:

1. Mixed Global Market Sentiment

Asian markets traded lower as investors waited for results from ongoing US-China trade negotiations. Japan’s Nikkei 225 fell by 0.61%, and South Korea’s Kospi dropped by 1.09%. These declines reflected cautious investor sentiment across global markets. In the US, the stock market ended mixed. While the S&P 500 reached another record high, the Dow Jones Industrial Average declined by 0.14%, and the Nasdaq Composite gained 0.33%.

Impact on Indian Market: The subdued mood in global markets led to expectations that Indian indices might also open lower. The Gift Nifty, a crucial market indicator for Indian stocks, was trading around 24,675, indicating a weak start for the day.

2. Heavy Selling in the Indian Market

The Sensex and Nifty 50, two of India’s primary stock indices, ended sharply lower due to persistent Foreign Portfolio Investor (FPI) selling. The Sensex fell by 572 points (0.70%), while the Nifty 50 dropped by 156 points (0.63%). Investors were concerned about the ongoing trade talks between India and the US, which further dampened market sentiment.

Reason for Drop: A mix of factors, including expensive market valuations and weak corporate earnings from Q1, led to intensified selling pressure. Global economic uncertainty and sluggish demand in India also contributed to a cautious approach from investors, especially with the monthly Futures and Options (F&O) expiry approaching on Thursday.

3. Industrial Production Slows Down

India’s industrial production growth slowed down to 1.5% in June 2025, a 10-month low. This was largely due to the underperformance of the mining and power sectors. In comparison, the industrial growth in June 2024 was 4.9%. The National Statistical Office (NSO) also revised the May growth to 1.9%, up from the previous estimate of 1.2%.

Impact: The lower industrial output raised concerns over India’s economic recovery, affecting investor confidence.

4. US Dollar and Gold Prices

The US dollar index remained steady at 98.67, while the euro and the British pound saw some fluctuation. The British pound hit a two-month low, and the euro traded slightly higher after a major drop the previous session.

Gold Prices: Gold prices fell slightly as fears over a global trade war eased and the US dollar strengthened. Spot gold was down by 0.2%, reaching $3,308.39 per ounce. This drop in gold prices was also influenced by improving trade negotiations.

5. Crude Oil Prices

Crude oil prices saw moderate gains due to hopes of increased economic activity following the US-EU trade deal. Brent crude futures rose by 0.09% to $70.10 per barrel, while US West Texas Intermediate (WTI) crude increased by 0.06% to $66.75 per barrel. These slight gains suggested a positive outlook for energy markets, linked to expectations of improved global economic activity.

6. Outlook for Indian Stock Market

The overall outlook for the Indian market remains cautious. With global uncertainties and a weak industrial outlook, investors are advised to remain cautious in the near term. Market experts are expecting more volatility as the F&O expiry approaches, and global market dynamics continue to influence local stock prices.

7. FPI Impact on Indian Markets

The ongoing heavy selling by FPIs has become a significant concern for Indian markets. As foreign investors pulled back, concerns over weak trade talks and India’s economic performance led to a sharp decline in Indian stocks. This trend could continue until global conditions stabilize and domestic earnings improve.

Disclaimer

The views and recommendations in this article are those of individual analysts or broking companies, not the publication. Investors should consult certified financial experts before making any decisions. The publication is not responsible for any financial gains or losses.

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