View on Market Performance for July 7, 2025 

Nifty Ends Flat Amidst Escalating Tariff Uncertainty; IT & Metal Drag 

It turned out to be a muted session for Nifty where, index consolidated in the narrow range of 80 points throughout the session. Nifty ended the session flat at 25461. Leading the charge among the top performers on the Nifty were Hind Unilver, Tata consumer and Nestle, showcasing resilience. Conversely, BEL, Tech Mahindra, and ONGC bore the brunt of selling pressure, concluding the session as major losers. Trading volumes on the NSE cash market were significantly lower, down 13% compared to yesterday, marking the lowest volume since March 17, 2025, indicating a continuation of moderated activity.  

Markets are jittery as the July 9 tariff deadline approaches, with investor anxiety mounting over potential trade disruptions. While round-the-clock negotiations between Indian and American officials had raised hopes of sealing a bilateral trade deal, uncertainty persists about when a comprehensive agreement will truly materialize.  

Reflecting this heightened uncertainty, the Indian Rupee has depreciated by 46 paise against the US Dollar, consistent with the broader trend observed across Asian currencies. This downturn is primarily attributed to weakened market sentiment following the recent pronouncements by the US President regarding a prospective extra 10% tariff on BRICS nations.  

Both the Nifty Midcap and Smallcap Indices witnessed profit booking to end the day with minor losses. Nifty midcap 100 Index fell by 0.27% while Nifty Smallcap 100 Index fell by 0.44%. Market breadth turned negative, with declining stocks outpacing advancing ones, as indicated by a BSE advance-decline ratio of 0.72.  

Amongst the sectoral Indices, Nifty FMCG, OIL/Gas and Realty were major gainers while Nifty Media, IT and Metal were major losers.  

From a technical perspective, short term trend of the Nifty remains positive as it is placed above its important moving averages. Immediate support for the Nifty is now seen at 25,331, while resistance would continue to be in the range of 25,600-25,670, as the market awaits clarity on the evolving global trade landscape.  

Source: HDFC Securities, Prime End of the Day Summary 

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.
 

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.
Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations