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Below The Weekly Market Outlook 04 July 2025 by Vinod Nair, Head of Research, Geojit Financial Services

"Indian equities witnessed a phase of profit booking this week, following a sharp rally in recent sessions. Mixed global cues and the impending US tariff deadline have prompted investors to adopt a wait-and-watch approach. FIIs have turned cautious amid elevated market valuations and mixed global cues, while DIIs continue to provide support, helping stabilize sentiment. Defence stocks outperformed, buoyed by the approval of large defence contracts, reflecting continued government focus on strategic sectors.

On the macroeconomic front, the broader economy stands to benefit from favourable conditions such as easing inflation and declining interest rates. A positive outcome from the US-India trade negotiations could further lift market sentiment, particularly benefiting trade-sensitive sectors like IT, pharma, and auto. Considering the broader indices currently trading at elevated levels, the market participants will closely watch for signs of earnings catch-up from upcoming Q1—starting next week. Additionally, the OPEC+ meeting scheduled for this weekend could influence global oil prices."

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