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Post Session: Quick Review
Jul-17-2025

Domestic markets magnified their losses in last leg of trade and concluded the Thursday’s trading session near day’s low levels amid U.S. tariff-related uncertainty. After making slightly positive start, soon indices entered into red territory as investors preferred to play safe. Besides, traders kept their close watch towards Q1 earnings. Further, markets remained under selling pressure till end of the session amid weekly F&O expiry. 

Some of the important factors in today’s trade:

Foreign fund outflows: Traders were worried amid fresh foreign fund outflows. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,858.15 crore on Wednesday, according to exchange data.

India's outward FDI jumps 74% in June: Traders overlooked Reserve Bank of India’s (RBI) latest report stating that outward foreign direct investment (OFDI) by domestic firms has seen a jump of 73.77% to $5,030.48 million in June 2025 as against $2,894.90 million in June 2024. In May 2025, it stood at $2,702.92 million.

India-US trade talks: US President Donald Trump said that America has another trade deal coming up, possibly with India. Trump’s comments come at a time when India's commerce officials are in Washington DC for another round of trade deal talks.

Global front: European markets were trading higher despite Euro area inflation rose slightly to the European Central Bank's 2 percent target in June, as initially estimated. Annual inflation moved up to 2.0 percent in June from 1.9 percent in May. Asian equity markets ended mostly in green after U.S. President Donald Trump denied plans to fire Federal Reserve Chairman Jerome Powell.

The BSE Sensex ended at 82,259.24, down by 375.24 points or 0.45% after trading in a range of 82,219.27 and 82,757.09. There were 8 stocks advancing against 22 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.07%, while Small cap index was up by 0.30%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 1.22%, Metal up by 0.62%, Basic Materials up by 0.42%, FMCG up by 0.32% and Healthcare was up by 0.28%, while IT down by 1.33%, TECK down by 1.06%, Bankex down by 0.51%, PSU down by 0.42% and Utilities was down by 0.25% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Steel up by 1.68%, Trent up by 0.72%, Tata Motors up by 0.51%, Mahindra & Mahindra up by 0.49% and Titan Company up by 0.45%. On the flip side, Tech Mahindra down by 2.68%, Infosys down by 1.67%, HCL Tech down by 1.15%, Eternal down by 0.88% and TCS down by 0.77% were the top losers. (Provisional)

Meanwhile, Fitch Ratings has said the Reserve Bank of India’s (RBI’s) substantial liquidity infusions into the banking system since early 2025 and its commitment to keep sufficient liquidity in the system will facilitate transmission of 100 basis points rate cut in 2025. The RBI has injected about Rs 5.6 lakh crore (2 per cent of system assets) of durable funding in 2025 through government securities purchases, resulting in surplus system liquidity since March. It said the central bank’s decision to cut the cash-reserve ratio (CRR) by 100 bps will further release about Rs 2.7 lakh crore in liquidity in a phased manner.

The agency said ‘This is evident in rising liquidity surpluses and falling deposit costs. We expect funding conditions to stay accommodating and facilitate transmission of 100 bp in rate cuts in 2025. This is also supported by a reversal in the rise in the sector's loan/deposit ratio amid slower loan growth, which should ease pressure on banks to compete for deposits’. The RBI has cut policy interest rates by a total of 100 basis points in 2025, starting with a quarter-point reduction in February -- the first cut since May 2020 -- and another similar-sized cut in April. In June, it cut rates by a higher-than-expected 50 basis points.

It said these measures signal a significant shift in the RBI's liquidity stance since its October 2024 report, as it aims to spur loan growth without intensifying funding cost pressures. It also said ‘Surplus liquidity conditions will likely accelerate the decline in the cost of fresh deposits. Nevertheless, we expect a 30 bp contraction in margins in the financial year ending March 2026 (FY26). However, margin pressures should moderate as deposit costs fall in FY27, helped by lower CRR requirements’.

The RBI in its monetary policy review in June announced a steep 1 per cent cut in CRR to bring it down to 3 per cent in four equal tranches. This reduction will be carried out in four equal tranches of 25 bps each with effect from the fortnights beginning September 6, October 4, November 1, and November 29, 2025. A CRR cut means that the commercial banks would have to maintain a lower level of 3 per cent in liquid cash form with the RBI, allowing them to have higher funds for lending.

The CNX Nifty ended at 25,111.45, down by 100.60 points or 0.40% after trading in a range of 25,101.00 and 25,238.35. There were 19 stocks advancing against 31 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tata Consumer up by 2.25%, Tata Steel up by 1.63%, Hindalco up by 1.17%, Trent up by 0.66% and Titan Company up by 0.47%. On the flip side, Tech Mahindra down by 2.75%, Indusind Bank down by 1.67%, Infosys down by 1.52%, SBI Life down by 1.44% and HCL Tech down by 1.21% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 42.38 points or 0.47% to 8,968.93, France’s CAC rose 69.34 points or 0.89% to 7,791.43 and Germany’s DAX was up by 227.42 points or 0.94% to 24,236.80.

Asian markets ended mostly higher on Thursday tracking Wall Street’s gains overnight after US President Donald Trump denied plans to fire Federal Reserve Chairman Jerome Powell, helping ease Fed independence fears. Japanese shares advanced, led by technology shares and ahead of a closely watched upper house election on Sunday, while weakening yen also bolstered sentiment. On the economic data front, Japan posted a seasonally adjusted merchandise trade surplus of 153.1 billion yen in June, the Ministry of Finance said. That was shy of estimates for a surplus of a surplus of 353.9 billion yen following the downwardly revised 638.6 billion yen deficit in May (originally a 637.6 billion yen shortfall). Exports were down 0.5 percent on year, missing forecasts for a gain of 0.5 percent after sinking 1.7 percent in the previous month.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,516.83

13.05

0.37

Hang Seng

24,498.95

-18.81

-0.08

Jakarta Composite

7,287.02

95.00

1.30

KLSE Composite

1,520.94

9.44

0.62

Nikkei 225

39,901.19

237.79

0.60

Straits Times

4,161.43

29.18

0.70

KOSPI Composite

3,192.29

5.91

0.19

Taiwan Weighted

23,113.28

70.38

0.30
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