The Indian stock market today saw a cautious close to the first half of the year. Both benchmark indices—Sensex and Nifty 50—ended the session in negative territory, reflecting profit booking and a defensive mood among investors. The BSE Sensex closed at 83606.46, falling 452.44 points or 0.54 percent from its previous close. The Nifty 50 ended at 25637.80, down 88.80 points or 0.35 percent. Throughout the day, the Sensex moved between 83482.13 and 84099.53 while the Nifty 50 traded in the 25523–25654 range. Despite this pullback, the indices have posted strong half-year returns, driven by institutional buying in heavyweight stocks earlier in the year.

Sector Performance Highlights
Public sector banks (PSU Banks) were star performers, with the Nifty PSU Bank index rising by 2.66%, led by Maharashtra Bank, Punjab National Bank, and Bank of Baroda due to renewed optimism and strong fund inflows.

The IT sector ended mixed; despite positive global cues and support from Infosys and TCS, profit-booking limited gains amid ongoing volatility as quarterly guidance is assessed.

The Auto sector saw significant declines as Nifty Auto closed lower amid concerns over domestic demand, exports, and global factors such as electric vehicle raw materials and chip shortages.

Pharma sector shares showed pockets of strength, with Alembic Pharma gaining 5.17% after USFDA approval for a cancer medicine and Torrent Pharma rising 2.08% following a major acquisition announcement.

Top 5 Gainers
Bank of Baroda +6.25%
Punjab National Bank +5.82%
Alembic Pharma +5.17%
ITD Cementation +4.91%
Torrent Pharma +2.08%

Top 5 Losers
Karnataka Bank -5.66%
Tata Motors -4.21%
Mahindra & Mahindra -3.94%
ICICI Bank -2.84%
Maruti Suzuki -2.67%

FII/DII Net Flows
Foreign Institutional Investors (FIIs) were net sellers amid profit booking at record valuations, particularly in large-cap stocks. Domestic Institutional Investors (DIIs) were net buyers, focusing on PSU banks and select pharma stocks to support the market and limit losses.

Key Macro-Economic & Global Drivers
Global equities fluctuated with renewed US tariffs expected from July 9 and ongoing US-China trade talks. US markets showed strength supporting global optimism, while Brent crude oil prices declined to USD 67/barrel easing inflation concerns. Geopolitical tensions in the Middle East eased, and positive trade deals improved risk sentiment. Domestically, policy optimism boosted PSU banks and sustained midcap and smallcap strength despite large-cap weakness. Upcoming GDP data, inflation figures, and quarterly earnings will be critical to monitor.

What to Watch Next
Investors should focus on the upcoming Q2 earnings season to gauge sector rotation and index trends. RBI’s next Monetary Policy Committee meeting will provide key signals on inflation and growth. Global developments such as US tariff implementation and central bank announcements could trigger volatility. Monitor the IPO pipeline for new issues and institutional flows, as continued DII buying might support indices if FIIs remain hesitant.