Markets Dip Despite Strong Inflows: Nifty fell below 25,400 and Sensex dropped nearly 300 points amid weak global cues, US tariff threats, and unfavourable corporate-specific news.
Mutual Fund Inflows Jump 69%: June saw ₹49,095 crore in mutual fund inflows, led by retail interest in equity, hybrid, mid-cap, and small-cap funds, pushing AUM to ₹74.40 lakh crore.
Vedanta, Insurance, and IT Stocks in Focus: Vedanta shares slipped following a critical short-seller report, HDFC Life and LIC declined, while TCS remained muted ahead of earnings.
Indian stock market today opened flat but has since experienced declines at press time. It signals a cautious mood among investors. The Nifty has fallen approximately 100 points, dropping below 25,400 on the Nifty weekly expiry day. Similarly, the Sensex has declined by about 300 points, currently trading at 83,150. These movements occur amid mixed global cues and persistent uncertainties that influence market sentiment.
Beyond the headline indices, the Nifty Bank is also trading in the red, showing a deficit of 100 points. While the broader market generally appears to be in a better position than the benchmarks, the mid-cap and small-cap indices are still trading with losses of just about 0.30%. It means that these segments, which have seen considerable gains recently, are currently experiencing some pressure.
Today's trading session saw a mix of strong performances and declines across various scrips.
Here are the top gainers on NSE among Nifty 50:
IndusInd Bank emerged as the top performer among the major stocks, gaining 1.18% to close at ₹850.70.
Maruti Suzuki also posted a significant gain of 1.05%, reaching ₹12,601.00.
Other notable gainers included Tata Steel, rising 0.75%, Bajaj Finance up 0.72%, and Jio Financial gaining 0.68%.
UltraTech Cement advanced 0.30% to ₹12,600.00, hitting an all-time high during the day.
Below are the top losers on NSE among Nifty 50:
Bharti Airtel was among the biggest decliners, dropping 2.28% to ₹1,973.60.
HDFC Life also saw a notable fall of 1.60%, closing at ₹773.75, impacted by its June business data.
From the IT sector, Wipro declined 1.42%, while Tech Mahindra fell 1.30% and Infosys was down 1.20%.
Bharat Electronics recorded a loss of 1.09%, and defense stocks in general faced pressure during the session.
Mutual fund inflows surged 69% in June to ₹49,095 crore, led by strong interest in equity, hybrid,mid-cap, and small-cap funds. Flexi Cap funds rose 49%, while mid and small-cap funds saw 33.7% and 25.2% increases, respectively. Mutual fund AUM jumped to ₹74.40 lakh crore, with equity AUM making up 45% at ₹33.46 lakh crore.
Ankur Punj, Managing Director and National Head at Equirus Wealth, noted, "The uptick in hybrid strategies suggests that investors are increasingly seeking a balance between growth and risk mitigation, a healthy sign of evolving market maturity."
Also Read: Vedanta Shares Drop 1.4% After Viceroy Report: Will Today’s AGM Shift Sentiment?
Several corporate announcements and specific stock movements are drawing investor attention today.
Shares of major insurance players HDFC Life and LIC both slumped following the release of their June business data. Here’s a snapshot of their performance:
HDFC Life saw its share price decline today. While its June Retail Annualized Premium Equivalent (APE) is up 12% YoY, the June New Business Premium (NBP) was notably down 6%. Despite this, the Q1 Premium for the company was up 15% YoY.
LIC shares also registered a decline. Investor sentiment declined due to the release of low June New Business Premium (NBP) data, which decreased by 3%. However, the Q1 Premium was up 3% YoY.
Vedanta shares on NSE closed 3% lower on July 9, following a critical report from short-seller Viceroy Research. As of 12:00 p.m. on July 10, the stock had registered a 1.4% decline.
The report, which was behind the decline, claimed that Vedanta's parent firm, Vedanta Resources, ‘resembles a Ponzi scheme’. It further stated that the group structure is ‘financially unsustainable, operationally compromised.’
Vedanta has, however, vehemently refuted Viceroy Research's allegations, calling the report ‘a malicious combination of selective misinformation and baseless allegations.’
It’s important to note that the company’s AGM is scheduled for today at 3 PM. As a result, investors are expecting clarification and a turnaround for the stock. Analysts' ratings are echoing this optimistic sentiment. JPMorgan maintained a ‘Long’ stance on Vedanta Resources, expressing comfort with the company’s leverage and the government's oversight of Hindustan Zinc.
TCS shares fell 0.27% to ₹3,375.25 as the market anticipates its upcoming quarterly earnings report. Brokerages are forecasting a slow start to the financial year for the Tata Group IT major. Net profit for the firm is expected to rise only between 1.5% and 3.5% year-on-year (YoY), while sales are expected to rise up to 4% YoY.
Sequentially, growth is expected to remain muted, with some brokerages even forecasting a minor revenue dip in constant currency (CC) terms. The dip can happen as a result of a ramp-down in the BSNL deal and weak demand in global markets.
Recent geopolitical developments are also impacting market sentiment. US President Donald Trump on July 9 announced a 50% tariff on imports of copper into the country. He further threatened to impose 200% tariffs on pharmaceutical imports after a year. For India, its copper exports to the US stood at around $360 million (roughly 17% of its total copper exports) in FY24-25.
Industry leaders suggest that such a measure would have a negligible impact on India, as the country is largely copper-deficient. The Indian pharma sector, however, could face an adverse impact. The US market accounts for 30-40% of the total revenue generated by Indian pharmaceutical companies. This means increased costs may need to be absorbed if these tariffs are indeed imposed.
In ongoing India-US trade discussions, clarity remains elusive, keeping investors watchful for any developments.
Today's Indian stock market reflects a cautious mood, with top indices experiencing declines despite the robust mutual fund inflows recorded in June. While retail investors continue to show strong confidence. However, specific corporate news, such as the Viceroy Research report on Vedanta, Q1 updates, and the US tariff announcements, is creating a notable challenge. Investors should keep a close eye on global developments to gain clearer direction and insight into future trends.
Also Read: Why Microsoft Stock Continues Hitting All-Time Highs?
1. Why is the stock market falling in India today?
The Indian stock market is under pressure due to weak global cues, geopolitical tensions, and investor caution ahead of key earnings. The Nifty dropped below 25,400, and Sensex slipped by nearly 300 points. Fresh concerns over US tariffs, weak insurance sector data, and a short-seller report on Vedanta have also dampened sentiment.
2. What is the latest stock market news in India today?
Key highlights include Vedanta shares tumbling after Viceroy Research accused its parent firm of financial mismanagement. Mutual fund inflows surged 69% in June, showing investor confidence. HDFC Life and LIC dropped after releasing weak June premium data. TCS earnings are expected soon, and copper and pharmaceutical stocks face pressure from US tariff threats.
3. What are the top gainers and losers in the stock market today?
In today's trade, IndusInd Bank and Maruti Suzuki led the gains with intraday rises of 1.18% and 1.05% respectively, followed by Tata Steel, Bajaj Finance, and Jio Financial, which all saw modest upward momentum. On the flip side, Bharti Airtel emerged as the biggest loser with a 2.28% drop. Other major declines were seen in HDFC Life, Wipro, Tech Mahindra, and Infosys, reflecting broader weakness in the telecom and IT sectors. These shifts are largely driven by sector-specific news and global market sentiment.
4. Why did Vedanta shares fall today despite strong fundamentals?
Vedanta shares dropped over 3% after a report from US-based Viceroy Research alleged that its parent company operates “like a Ponzi scheme.” Although Vedanta denied these claims and issued a rebuttal, investor sentiment took a hit ahead of its crucial AGM scheduled for today.
5. What should investors watch out for in the market now?
Investors should keep an eye on key earnings reports, starting with TCS. Vedanta’s AGM today could move its stock sharply. Developments regarding US tariffs on copper and pharmaceuticals could impact sector-specific stocks. Retail inflows into mutual funds and the resilience of mid-cap stocks may also provide cues for market direction in the coming days.