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What happened in the Indian stock market today (3rd July 2025)?

The Indian stock market today experienced a turbulent day with investors staying cautious amidst various global concerns.

What happened in the Indian stock market today (3rd July 2025)?

BSE Sensex: The index reached an intraday high of 83,850 but closed at 83,239.7, down by 170.22 points or 0.2%.

NSE Nifty50: Similarly, the Nifty50 ended at 25,405.3, losing 48.1 points or 0.19%.

After a positive start, driven by hopes of a US-India trade deal and some optimism around Foreign Institutional Investor (FII) movements, the markets faced a sharp late sell-off, resulting in losses by the close of the session.

The broader market picture painted a mixed picture. The Nifty Midcap100 index managed to hold steady, finishing flat with a slight positive bias. In contrast, the Nifty Smallcap100 index ended down by 0.26%.

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Impact on the stock market

From a sectoral perspective, the day was more unfavorable, with several indices ending in the red.

  • Nifty PSU Bank was the worst-performing sector, dropping by 0.89%, driven largely by selling in stocks like Punjab National Bank, Union Bank of India, UCO Bank, and Central Bank.
  • Nifty Metal, Realty, Bank, Financial Services indices also closed in the red, adding to the overall negative sentiment.

On the other hand, there were sectors that managed to close higher:

  • Nifty Media, Auto, Pharma, Healthcare, Consumer Durables, Oil & Gas, and FMCG stocks helped limit the overall market decline, closing higher.
Sector/IndexPerformance
IT & BPM sector-0.06%
Healthcare sector0.52%
Oil & Gas sector0.33%
Real estate sector-0.71%
PSU Bank in India-0.89%

Top gainers today

CompanyPrice (in ₹)Change %
Apollo Hospital Share Price7,565.001.67
Dr Reddys Labs Share Price1,291.301.61
Hero Motocorp Share Price4,310.601.58
ONGC Share Price244.051.24
Maruti Suzuki Share Price12,752.001.03

Top losers today

CompanyPrice (in ₹)Change %
SBI Life Insura Share Price1,810.20-2.51
Kotak Mahindra Share Price2,126.60-1.96
Bajaj Finance Share Price910.15-1.39
Bajaj Finserv Share Price1,980.70-1.35
JSW Steel Share Price1,046.10-1.30

Market aftermath: Impact on stocks

M&M Financial Services: A modest rise

Shares of M&M Financial Services saw a 4% jump after the company reported steady business updates for the first quarter of FY2025-26. The company reported disbursements of ₹12,800 crore in Q1, a slight 1% increase from the previous year. Their business assets grew by 15%, and the loan recovery rate stood at a solid 95%, slightly improving from last year. However, Morgan Stanley expressed caution about the company’s asset quality and growth, maintaining a neutral stance with an “equal-weight” rating. The brokerage highlighted that while recovery rates were strong, the increase in Stage-3 assets (high-risk loans) could pose future challenges.

Also read: Tata Steel Shares Gain 16% in 2025 After Port Talbot Project Update

Metal Stocks Surge Amid Weak Data from China

On July 3, metal stocks recorded impressive gains following weak economic data from China. The Caixin/S&P Global services PMI for June fell to 50.6, marking a 9-month low. This slowdown in China’s services sector, compounded by ongoing US tariffs, has reduced external demand, which in turn, has dampened business optimism. Hindalco, Tata Steel, and other major metal companies gained up to 2%, with the Nifty Metal index rising nearly 0.6%.

The PMI data showed a slowdown in both manufacturing and services activities, with weakened demand, delayed supplier deliveries, and a shrinking employment rate. This weak growth outlook in China had a positive knock-on effect on Indian metal stocks, driven by hopes that lower demand for global commodities might push prices higher.

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Defence Stocks Soar on Indo-US Agreement

Defence stocks saw notable gains as India and the US moved closer to finalizing a 10-year defence framework. Shares of Hindustan Aeronautics Ltd (HAL), BEML, Paras Defence, and other defence-related companies surged, lifting the Nifty India Defence index by 0.65%. The upcoming agreement, which will focus on strengthening defence and strategic ties between the two countries, is expected to lead to more joint defence projects and sales, benefiting companies like HAL and BEML. On the downside, some defence stocks such as Bharat Dynamics and Zen Technologies saw slight declines, reflecting mixed market sentiment within the sector.

Crude Oil: A Drop in Prices

Crude oil futures took a hit on July 3 following news of increased crude oil inventories in the US. The rise in inventories indicated softer demand, leading to price declines:

  • Brent crude oil: Down 0.74%, trading at $68.60 per barrel.
  • WTI crude oil: Down 0.70%, at $66.98 per barrel.
  • Domestic crude prices: The July crude oil futures on the Multi Commodity Exchange (MCX) were also lower, down by 0.21% at ₹5,741 per barrel.

The increase in US crude stockpiles by 3.8 million barrels was a key contributor to the dip in prices. Additionally, there are concerns about upcoming US-China trade talks that could influence future price movements. The situation is further complicated by OPEC+ meetings over the weekend, which could lead to another round of production increases, putting additional pressure on prices.

Conclusion

Today’s market action was a tale of two halves. While optimism initially guided the indices upward, the momentum fizzled out as cautious investors feared a potential slowdown in global demand. Sectoral rotation played a significant role in keeping some areas of the market afloat, while metal stocks benefitted from Chinese economic data. Defence stocks were buoyed by strategic announcements, but the outlook for crude oil remains uncertain due to rising inventories and the upcoming OPEC+ meeting.

For investors, it’s a reminder that market dynamics are influenced by a mix of domestic, global, and sector-specific factors. Keeping a close watch on global events, particularly in the US and China, will likely remain crucial in shaping the short-term market outlook.

For more stock market insights, check out the StockGro blog.

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Rishi Gupta

Rishi Gupta is a dynamic day trader known for his quick decision-making and strategic approach to short-term market movements. With years of experience in high-frequency trading and chart analysis, Rishi specializes in spotting intraday trends and capitalizing on price fluctuations. His trading philosophy is rooted in discipline, risk control, and technical analysis. Through his writing, Rishi aims to help aspiring day traders understand the nuances of short-term trading, with an emphasis on risk-reward ratios, momentum, and timing.

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