The Indian stock market today saw a subdued session with the benchmark indices closing lower. The BSE Sensex ended just below the 83700 mark, recording a decline of 176 points for the day. The Nifty 50 snapped its three-day rally, closing below the critical 25500 level. Market sentiment was cautious as investors reacted to global trade tensions and the initial impact of Donald Trump’s latest tariff announcements. Despite the dip in large cap indices, small cap stocks showed some resilience, closing with modest gains. At open, Nifty 50 was at 25497.85 down by 25 points. The Sensex opened at 83602.43, dropping by 110 points as of 9:18 am. Toward the market’s close, Nifty 50 settled below 25500 and Sensex finished at around 83600, down by nearly 200 points on the day.

Sector Performance Highlights
Banking: The Nifty Bank index fell by around 0.25%, mirroring the caution in broader markets. PSU banks underperformed with Union Bank shares dropping by 4% after its Q1 business update.

IT: Information technology stocks traded mixed. Overall, the IT sector was not among the top movers either way in today’s session; however, HCL Tech was noted among the leading index losers.

Auto: The automobile sector showed signs of recovery, snapping a three-day losing streak. Nifty Auto registered modest gains as buying emerged at lower levels, helping the sector close positive for the day.

Pharma: Pharmaceutical stocks were a key focus area, with the Nifty Pharma index breaking its recent two-session downturn. Medanta outperformed the sector with a sharp 8% surge while the broader pharma pack posted modest gains. Markets watched for cues after Donald Trump’s brief on potential 200% tariffs on pharmaceutical imports, but immediate impact was muted.

Top 5 Gainers
Medanta +8.1%
PBCL Chemicals +6.5%
Garden Reach +4.7%
Sterling and Wilson +3.9%
NivaBupa +3.2%

Top 5 Losers
Vedanta -7.2%
Tata Steel -3.0%
Phoenix Mills -3.2%
Union Bank -4.0%
HCL Tech -2.6%

FII/DII Net Flows
On July 9 2025, Foreign Institutional Investors (FIIs) were net sellers amid global risk-off sentiment and renewed tariff worries. Specific FII DII net flow figures for the day are awaited from recognized exchanges and SEBI’s post-market disclosure but the tone in institutional flows remained cautious mirroring global trends. Domestic Institutional Investors (DIIs) showed some buying support in select large-cap stocks, limiting the extent of the decline.

Key Macro-Economic & Global Drivers
Global markets mostly tracked US-China trade rhetoric and the implications of Donald Trump’s announced tariff measures, including 50% tariffs on copper, 10% for being in BRICS, and a potential 200% tariff on pharmaceutical imports with a grace period. Most analysts, however, believe the actual impact may be limited as markets have grown accustomed to volatile policy statements and await definitive steps. On the domestic front, the rupee closed stronger versus the dollar, slightly supporting market sentiment. Investors are also focused on the upcoming June quarter earnings season for cues on corporate performance and outlook. Additionally, real estate and metal sectors underperformed, with Nifty Realty snapping a three-day winning streak and Nifty Metal extending its losing run.

What to Watch Next
The corporate earnings season is expected to drive the next leg of market direction. Investors are monitoring global trade policy updates and the timeline for any new US tariffs, especially related to the BRICS grouping and pharmaceuticals. The Reserve Bank of India’s policy announcements and updates on domestic macro data, including inflation and industrial output, will be critical in the coming weeks. Tracking fund flows from both FIIs and DIIs remains important as global risk appetite shifts.