July Market Recap: Top Trends of the Month
Table of Contents
The Indian stock market began July 2025 with a two-day rally before experiencing a downturn later in the month. The pharma sector faced particular headwinds, with significant losses among major players like Trent, HCL Tech and Tech Mahindra. Factors influencing the market included concerns over US tariffs and fluctuations in foreign investment flows.
Nifty 50 Performance in July
July Market Roundup
The Indian stock market experienced a mixed performance in July 2025, with a slowdown in activity amidst concerns over US tariffs and foreign fund outflows. The Nifty 50 closed at 25,551.35 and the Sensex settled at 83,685.66.
Key Highlights:
🠖 Market Decline: Both the Nifty 50 and Sensex experienced declines in July, influenced by global market weakness and domestic concerns.
🠖 US Tariffs Impact: The announcement of a 25% tariff on Indian exports by the US President weighed heavily on market sentiment.
🠖 FII Outflows: Foreign Institutional Investors (FIIs) continued to offload equities, contributing to the market downturn.
🠖 Sectoral Performance: Cyclical sectors faced sharp losses, while defensive sectors like FMCG showed some resilience.
🠖 Volatility: India VIX ticked up to 11.54, indicating a slight rise in market volatility.
Strong Manufacturing Growth Fuels Market Sentiment
India’s manufacturing sector saw a significant upswing in July, with the HSBC India Manufacturing Purchasing Managers’ Index rising to 59.1 – a 16-month high. This indicates robust demand and a positive outlook for the industrial sector.
Market Activity Cools Amidst Concerns
Despite the manufacturing growth, market activity slowed down in July, with a 16% drop in cash market turnover—the steepest decline since October 2023. This is attributed to a combination of weak investor sentiment and regulatory adjustments.
US Tariffs Impact Market Performance
A significant development in July was the announcement of a 25% tariff on Indian exports by the US President, causing a negative reaction in the Indian stock markets. The Gift Nifty indicated a gap-down opening. Concerns over newly imposed US tariffs on Indian exports weighed on the market, leading to declines in early trade. Asian markets also showed a downward trend in response to the news.
Stock Specific Movements
Several stocks experienced notable movements. 3M India rose 2.02%, while GE Vernova TD India surged 5%. HUL also saw gains, solidifying its position as a key market player.
Dividend Declarations & Short-Term Picks
Several companies announced dividend payouts in July, including Maruti, Marico, and Eicher Motors. Experts also highlighted Apollo Hospitals, Cipla, and Godrej Consumer Products as potential short-term buys.
Outlook
Despite the short-term dip, the overall outlook remains cautiously optimistic, with analysts expecting flat-to-positive openings based on global market cues.
Sectoral Movements
Nifty Healthcare, Pharma, and FMCG emerged as the top-performing sectors, while Nifty Consumer Durables and Auto were the underperformers, declining by nearly 1%.
Company Performance
Commodities Month’s Change
SME IPO Performance – July
July SME IPO:
India’s IPO market witnessed strong momentum in July 2025, with 13 companies making their public debut, indicating solid investor appetite across various sectors. Standout listings such as HDB Financial Services, GNG Electronics, Crizac Limited, Ellenbarrie Industrial Gases, and Anthem Biosciences saw substantial oversubscription. To make the most of this IPO boom, investors are advised to prioritise companies with strong fundamentals and long-term growth prospects.
New NFO’s open
🔸 Groww BSE Power ETF FOF – Direct (G) 18 Jul– 01 Aug 2025
🔸 Groww BSE Power ETF 18 Jul- 01 Aug 2025
🔸 Aditya Birla SL BSE 500 Quality 50 Index Fund-Dir (G) 21 July- 04 Aug 2025
🔸 Aditya Birla SL BSE 500 Momentum 50 Index Fund-Dir (G) 21 Jul- 04 Aug 2025
🔸 Motilal Oswal Special Opportunities Fund – Dir (G) 25 Jul– 08 Aug 2025
🔸 Zerodha Multi Asset Passive FoF – Direct (G) 25 Jul– 08 Aug 2025
🔸 Bajaj Finserv Equity Savings Fund – Direct (G) 28 Jul– 11 Aug 2025
🔸 Kotak Nifty Alpha 50 Index Fund – Direct (G) 28 Jul– 11 Aug 2025
🔸 Kotak Active Momentum Fund – Direct (G) 29 Jul– 12 Aug 2025
🔸 360 ONE Multi Asset Allocation Fund – Direct (G) 30 Jul– 13 Aug 2025
🔸 Bank of India Mid Cap Fund – Direct (G) 31 Jul– 14 Aug 2025
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