The Indian stock market today on July 3 2025 closed in the red for the second consecutive session. The benchmark indices erased their early gains in the final hour, reflecting a cautious market environment led by profit booking in key financial stocks. Sensex closed at 83,239, posting a decline of 170.2 points or 0.20 percent for the day. Nifty 50 dropped by 48.10 points, ending at 25,406, a fall of 0.19 percent. Market sentiment was under pressure, especially among financials. Despite a strong start, both indices fell amid final-hour selling.

Sector Performance Highlights
Banking was the worst-performing sector today, led by sharp losses in PSU banks. Nifty PSU Bank index dropped for the second consecutive session, with Punjab National Bank falling over 3 percent and Union Bank of India also in the red. Financial stocks like Kotak Mahindra Bank and SBI Life were major drags.

The IT sector ended mostly flat. While not the most volatile area today, IT stocks showed limited movement as investors watched for cues from global tech peers.

Auto stocks stood out with strong buying interest after positive monthly sales numbers. Hero MotoCorp and Maruti Suzuki were among the top Nifty gainers, helping the auto index record its second consecutive day of gains. Bosch also surged by 6 percent, supporting the sector’s rally.

Pharma continued its robust outperformance, marking its 10th gaining session in a row. Dr Reddy’s Laboratories and Apollo Hospitals were key contributors to the sector’s strength today, with both stocks attracting strong buy-side demand. The sustained uptrend highlights sector resilience in July.

Top 5 Gainers
Dr Reddy’s +3.2%
Apollo Hospitals +2.7%
Hero MotoCorp +2.4%
Bosch +6.0%
Maruti Suzuki +1.8%

Top 5 Losers
SBI Life Insurance -3.0%
Kotak Mahindra Bank -2.8%
Punjab National Bank -3.2%
Bajaj Finserv -2.5%
Nykaa -4.0%

FII DII Net Flows
The latest data indicates continued outflows from Foreign Institutional Investors (FII) as they booked profits in large-cap stocks today. Domestic Institutional Investors (DII) provided some buying support, cushioning broader market declines, especially in midcaps and select autos. Precise FII DII net flow values were not found. For official and daily FII DII cash flows, refer to NSE India or SEBI releases.

Key Macro Economic and Global Drivers
Several key factors influenced the Indian stock market today including weakness in global equities and renewed volatility in US markets, rising crude oil prices impacting select sectors, ongoing monsoon progress affecting rural demand and auto sales, profit booking after recent rallies mainly in financials and PSUs, positive regulatory news such as Mobikwik receiving a SEBI broker certificate, and anticipation of upcoming macro releases like inflation and PMI data for July.

What to Watch Next
Investors should monitor global market trends and FII DII flow changes for risk appetite signals, crude oil price movements affecting inflation and corporates, sectoral rotations with pharma and auto showing strength while banking requires stability, the upcoming earnings season with blue chip and midcap results, domestic economic data including jobs, inflation, and RBI policy comments, and IPO activity expected in July with updates available on nextipoindia.com. The market reflects a cautious and selective approach amid global and domestic sector influences entering the July earnings season.