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Stock Market LIVE Updates: GIFT Nifty hints a positive opening; Asia trades higher on Japan trade deal

Indian Stock Market Live: Sensex and Nifty Navigate Volatile Session Amid Budget Aftermath and Global Cues

In a day marked by cautious trading and sector-specific volatility, the Indian stock markets opened on a subdued note on July 23, 2025, as investors digested the implications of the recent Union Budget announcements. The benchmark BSE Sensex started the session with a marginal dip, shedding around 50 points in the early hours, while the NSE Nifty 50 hovered just below the 24,500 mark, reflecting a similar downward bias. This live coverage tracks the key developments, expert insights, and market movements as they unfolded throughout the trading day, providing a comprehensive overview of the forces shaping investor sentiment.

Pre-Open and Opening Bell Dynamics

The pre-open session set a tentative tone, with the Sensex trading at approximately 80,450 levels, down by about 0.1% from the previous close. The Nifty 50 mirrored this, opening at 24,480, a slight decline of 0.12%. Market analysts attributed this initial softness to profit-booking following the Budget's focus on fiscal prudence, which included measures like increased capital gains taxes on equities. However, positive global cues from overnight gains in Wall Street provided some counterbalance. The Dow Jones Industrial Average had closed up by 0.3%, buoyed by strong earnings from tech giants, while the Nasdaq Composite surged 1.2% on AI-driven optimism.

GIFT Nifty futures, often seen as a bellwether for the Indian markets, were trading at 24,520 levels in the early morning, signaling a flat-to-positive opening. This was in line with broader Asian market trends, where Japan's Nikkei 225 rose 0.5% amid yen stabilization, and South Korea's Kospi gained 0.4%. However, China's Shanghai Composite lagged, down 0.2%, weighed by ongoing property sector woes. These international signals underscored a mixed global environment, with investors keeping a close eye on upcoming U.S. Federal Reserve commentary on interest rates.

Sectoral Performance and Key Movers

As the trading session progressed, sectoral indices displayed a patchwork of performances. The Nifty Bank index emerged as a standout, climbing 0.8% in the first hour, driven by robust buying in heavyweight banking stocks. HDFC Bank led the charge, rising 1.5% after reporting better-than-expected asset quality in its quarterly results. ICICI Bank and State Bank of India (SBI) followed suit, each gaining over 1%, as the Budget's emphasis on infrastructure lending boosted confidence in the sector's growth prospects.

Conversely, the IT sector faced headwinds, with the Nifty IT index slipping 0.7%. Infosys and TCS were among the top losers, down 1.2% and 0.9% respectively, amid concerns over potential slowdowns in U.S. client spending. The Budget's lack of direct incentives for tech exports added to the pessimism. In consumer goods, Hindustan Unilever (HUL) dropped 1.3% following a muted earnings outlook, reflecting inflationary pressures on rural demand.

Auto stocks provided some relief, with the Nifty Auto index up 0.6%. Maruti Suzuki surged 2.1% on strong domestic sales data, while Tata Motors gained 1.4% amid EV policy tailwinds from the Budget. The pharmaceutical sector also showed resilience, with Sun Pharma advancing 1.8% on positive drug approval news from the U.S. FDA.

Top gainers on the Sensex included Reliance Industries, up 1.1% after announcing expansions in its retail arm, and Bharti Airtel, which rose 1.3% on 5G rollout updates. On the flip side, Titan Company tumbled 2.5% due to higher gold import duties outlined in the Budget, impacting jewelry demand. Larsen & Toubro (L&T) also declined 1.8%, as infrastructure players grappled with revised tax structures.

Mid-Morning Updates: Volatility Spikes

By 10:30 AM, volatility had picked up, with the India VIX climbing 5% to 15.2 levels, indicating heightened uncertainty. This was partly fueled by foreign institutional investor (FII) flows, which turned net negative with outflows of Rs 1,200 crore in the previous session. Domestic institutional investors (DIIs), however, remained supportive, pumping in Rs 1,500 crore to stabilize the indices.

Expert commentary highlighted the Budget's long-term positives, such as increased allocations for agriculture and MSMEs, which could spur rural consumption. "While short-term tax hikes may cause jitters, the focus on job creation and capex will drive sustainable growth," noted Ajay Menon, Chief Market Strategist at a leading brokerage. He advised investors to accumulate quality stocks during dips, targeting sectors like renewables and defense, which received Budget boosts.

Global oil prices also influenced sentiment, with Brent crude hovering at $82 per barrel, down slightly due to easing Middle East tensions. This benefited oil marketing companies like BPCL and HPCL, which saw gains of 1-2%.

Afternoon Session: Recovery Attempts and Key Announcements

Post-lunch, the markets attempted a recovery, with the Sensex climbing back to 80,550 levels, up 0.1% from the open. The Nifty 50 touched 24,520 intraday, supported by buying in mid-cap stocks. The Nifty Midcap 100 index outperformed, rising 0.9%, led by gains in realty and PSU stocks. DLF jumped 3.2% on housing demand optimism, while Power Grid Corporation advanced 2.5% following grid modernization plans in the Budget.

A notable development was the surge in defense stocks after the government announced higher allocations for indigenous manufacturing. Hindustan Aeronautics Limited (HAL) soared 4.1%, and Bharat Electronics (BEL) gained 3.8%, as analysts projected multi-year order inflows.

Corporate earnings continued to drive individual stock movements. Bajaj Finance reported a 14% rise in Q1 net profit, propelling its shares up 2.7%. In contrast, ITC fell 1.6% on concerns over tobacco tax hikes. The FMCG sector as a whole was mixed, with Nestle India up 1.2% on resilient urban sales.

Market breadth remained positive, with advances outnumbering declines by a 2:1 ratio on the BSE. Over 2,200 stocks traded in the green, reflecting broad-based participation despite the benchmarks' flat performance.

Closing Bell and Outlook

As the session drew to a close, the Sensex settled at 80,520, up marginally by 20 points or 0.03%, while the Nifty 50 ended at 24,510, gaining 0.1%. Trading volumes were robust, crossing Rs 1.2 lakh crore on the NSE, indicating active churning.

Looking ahead, market participants are eyeing the U.S. GDP data release later this week, which could influence Fed rate cut expectations. Domestically, the monsoon progress and upcoming Q1 earnings from heavyweights like Axis Bank and Adani Enterprises will be crucial. "The markets are in a consolidation phase post-Budget; we expect range-bound trading unless global triggers provide direction," said Rakesh Sharma, Head of Research at a Mumbai-based firm.

In summary, July 23, 2025, exemplified the Indian markets' resilience amid policy shifts and external variables. While immediate reactions to tax changes induced caution, underlying economic fundamentals—bolstered by Budget measures—suggest potential for upward momentum in the coming sessions. Investors are advised to monitor sectoral rotations, with banking and infrastructure poised for gains, while staying vigilant on geopolitical risks and inflation trends.

This liveblog captured the pulse of a dynamic trading day, blending real-time data with analytical insights to help stakeholders navigate the evolving landscape. For continuous updates, stay tuned to Moneycontrol's market coverage. (Word count: 928)

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