Markets Lose Steam Amid Global Jitters; Pharma and Durables Shine

Indian Developments

The Sensex and Nifty 50 ended the week in the red, reversing gains from the previous week. The downturn was primarily attributed to the weakening of the rupee, persistent FII selling—where foreign investors offloaded equities worth ?1,561.62 crore, leading to a month-to-date outflow of ?3,531 crore—and lingering uncertainty surrounding India-US trade negotiations.

USD gains were capped by strong U.S. job data and routine demand from importers.

Brent crude oil hovered around USD 68.75 per barrel as of July 4, 2025, marking a 5.21% gain over the past month. The price movement was influenced by Geopolitical tensions, OPEC+ production strategy, US inventory data and Macroeconomic signals.

Gold prices in India witnessed a Volatility this week, driven by upcoming US inflation data and Fed policy signals for further direction

The Nifty 50 ended the week lower at 25,405, marking a 0.69% decline from the previous week .Meanwhile, the Nifty Midcap 150 and Nifty Small cap 250 indices posted modest gains, rising by approximately 0.61% and 0.68% respectively.

Sectoral Developments

For the week ending July 4, 2025, sectoral performance was mixed, with some sectors witnessing profit booking.

Nifty Pharma led the gains, rising to 2.08%, followed by Nifty Consumer Durables (+2.77%), Nifty PSU Bank (+1.96%), Nifty Oil & Gas (+1.41%), and Nifty IT (+0.89%).

Nifty Auto, despite mid-week strength, ended 0.11% lower.

On the downside, Nifty Realty declined sharply by 2.21%, while Nifty Financial Services, Nifty Bank, and Nifty FMCG fell by 1.75%, 0.72%, and 0.68% respectively.

Global Developments

The major indexes were coming off a lackluster performance. Major U.S. stock indices—including the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite—experienced notable gains of 1.7%, 2.3% and 1.6% respectively driven by strong job reports, moderating inflation and trade optimism.

In Europe, the FTSE 100 edged higher by 0.28%, and Germany’s DAX declined by 0.41% amid mixed economic data.

Asian markets decline. South Korea’s KOSPI and Hong Kong’s Hang Seng down surged by 1.41% and 0.62% respectively. And Shanghai Composite gained by 0.70% influenced by mixed global cues, Trump’s July 9th Tariff deadline and global uncertainty.

Other Markets:

• Brent Crude oil prices ended at $68.75 per barrel.
• The rupee was depreciated to 85.62 levels against the US dollar.
• The 10 Year Benchmark G-Sec yield closed at 6.29% this week.
• Gold prices closed at Rs 96,609 per 10 grams.

Source: www.nseindices.com; google finance, MCX Gold Prices; www.rbi.org.in; Morningstar and tradingeconomics.com, ccilindia.com, Economic times

Data for week ended on July 4th , 2025.

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