Indian benchmark equity indices remained resilient and continued their upward momentum today, Thursday, 3 July 2025, buoyed by the upbeat cues from global markets after a historic US-Vietnam trade deal. Meanwhile, investors are eagerly awaiting any significant movement on a comparable trade deal between the US and India, spurring hopefulness on Dalal Street. The Nifty 50 hovers well over the 25,500 level and the BSE Sensex gains solidly in morning trade.
As of 11:30 AM IST, the Nifty 50 was up about 104 points or 0.42%, at 25,569. This comes after its prior close of 25,453.40. Similarly, the BSE 30-share Sensex gained 424 points, or 0.51%, to 83,833, after settling at 83,409.69 on Wednesday. The wider market mirrored this optimism, with Nifty MidCap and Nifty SmallCap indices advancing 0.39% and 0.46%, respectively.
Major Market Drivers
The market seems to be trading on a tailwind of both global trade news and strong domestic institutional tone.
The US-Vietnam trade deal has ignited expectations for others, with traders looking forward to a US-India trade deal. Analysts think such an agreement could be a robust positive trigger for Indian stocks and even assist Nifty in breaking higher resistance levels. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the US administration’s enthusiasm for additional trade deals augurs well for emerging economies like India.
Domestic Institutional Strength, DII’s have remained a strength for India. DIIs on 2nd July were strong net buyers, pumping in a hefty ₹3,036,68 crore into equities. Such a strong inflow effectively soaked up the FII selling, who were net sellers for the day, dumping ₹1,561.62 crore worth of equities. The DII buying every day has given us that floor that we needed, cushioning us from all the external volatility. Today’s trading session also coincides with the weekly futures and options (F&O) expiry for Nifty, which is expected to induce some volatility. Options data suggests heavy resistance for Nifty near 25,600-25,700 levels, whereas robust support comes in at 25,400 and 25,300.
Top Sectoral Performers
Sectoral rotation is still king. At the head of the gainers were
Nifty Auto: +1%, broad-based strength in the auto spaceNifty Metal: Up around 0.55%, indicating investors’ appetite for the sector is rising again.
Up approximately 0.47%, showing sustained faith in tech stocks.
Consumer Durables: erased gains of around 1%.
A few sectors traded lower and Nifty PSU Bank emerged as the top loser, down by nearly 0.4%. Realty, Media, Energy, and Infrastructure experienced minor decreases.
Stock Detail Highlights:
From the Sensex basket, Asian Paints, Tata Steel, Infosys, Mahindra & Mahindra, ICICI Bank, and HDFC Bank were among the top gainers. Kotak Mahindra Bank, Bajaj Finance, Trent, and Bharat Electronics (BEL) traded in red.
In particular stock news, Nykaa (FSN E-Commerce Ventures Ltd.) shares dropped more than 4% in early trade after a block deal of almost 6 crore shares, or 2.3% of the company’s equity. Meanwhile, HDB Financial Services had a great debut yesterday and extended its gains today, up over 4%.
World Market Recap:
Asian markets mostly rose today, following a strong Wall Street close overnight. US markets finished mostly in the green, with the S&P 500 and Nasdaq Composite hitting new record highs, fueled by the US-Vietnam trade deal. China’s services activity growing at its slowest in nine months in June dragged Hong Kong’s Hang Seng index lower and Japan’s Nikkei was broadly flat.
Money and Materials
The Indian Rupee slipped a bit in early trade, declining 7 paise to 85.69 versus the US dollar. On the commodities front, Brent crude futures softened, giving up some of the prior session’s gains, fluctuating around $68.87 a barrel on concerns about softer US demand after government data revealed a surprise build in inventories.
Market’s volatility gauge India VIX too remained muted with gains of 0.38 percent to trade below 15, reflecting a relatively low-volatility environment and absence of panic among investors.
Also check:- Indian Equities Open Higher Amidst Mixed Global Cues; Nifty Hovers Around 25,600
As the market enters quarterly earnings season next week, investors are likely to be tentative. Experts recommend a ‘buy-on-dips’ strategy as they see an opportunity for investors when Nifty continues to float around its key supports. With that, the overall trend will remain driven by global economic data, institutional flows, and any additional news on international trade deals.
