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Below the Perspective on Markets 02 July 2025 by Mr. Vikram Kasat, Head - Advisory, PL Capital

“Indian benchmark indices closed sharply lower on Wednesday, July?2, as concerns over U.S. trade policy and weak global cues weighed on sentiment.

 Market snapshot:

* Sensex dropped ~300?points to settle around 83,260, while

* Nifty fell below 25,500, closing near 25,410

 Top movers:

* Losers: Shriram Finance, Bajaj Finserv, IndusInd Bank, Bajaj Finance, L&T led the declines on Nifty  .

* Gainers: Tata Steel, JSW Steel, UltraTech Cement, Maruti Suzuki, Hero MotoCorp posted modest gains  .

 Sector performance:

* Metals climbed ~1.1–1.3%, while Consumer Durables gained ~1%  .

* Weakness in PSU banks, capital goods, realty, media, and oil & gas — down 0.5–1%  .

 Mid & small-caps:

* BSE Midcap fell ~0.2% and Smallcap by ~0.3%  .

 IPO update:

* HDB Financials debuted at a ~13% premium  .

* Sambhv Steel listed with a ~34% premium  .

 Rupee & macro:

* The rupee weakened ~0.2%, trading near Rs.85.68/USD, as markets digested U.S. tariff timelines and Fed signals  .

* Strategists expect it to remain in a narrow range despite dollar softness, bolstered by RBI’s active intervention  

 Gold update:

* Gold prices surged ~Rs.1,200/10?g on July?1, reaching ~Rs.98,670–99,040 for 24K, and ~Rs.90,650–90,800 for 22K across major metros  .

* Stabilized around Rs.9,197/g per FXStreet data on July 2

* Global gold hovered near $3,337/oz as markets awaited U.S. payroll data and Fed commentary  .

 Bottom line:

* Markets are in a cautious mood, buffeted by U.S. tariff uncertainty and Fed policy readability. Domestic strength remains limited to select themes—metals, durables, and fresh IPO gains.

* Meanwhile, gold’s sharp rally reflects safe-haven demand, and the rupee is likely to trade in a narrow band with RBI support. Focus now will be on U.S. macro releases, trade deal developments, and mid?quarter corporate earnings.

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