Indian Benchmark Indices Slip; HDB Financial Soars on Debut Amid India–U.S. Trade Hopes

The Nifty 50 declined by 0.35 per cent to 25,453.40, while the Sensex ended 0.34 per cent lower at 83,409.69.

Market Update at 4:00 PM: Indian equities slipped on Wednesday, dragged down by financial stocks that pulled back from recent highs, despite optimism surrounding a potential trade deal between India and the U.S. The Nifty 50 declined by 0.35 per cent to 25,453.40, while the Sensex ended 0.34 per cent lower at 83,409.69.

U.S. President Donald Trump hinted that an agreement with India was nearing finalisation, which could help New Delhi avoid a proposed 26 per cent retaliatory tariff postponed until July 9. 

Among sectoral indices, nine out of 13 declined. Major stocks such as HDFC Bank and Reliance Industries lost 1.3 per cent and 0.6 per cent, respectively. Financials dropped 1 per cent, marking their third consecutive session of decline, while the Bank Nifty slid 0.8 per cent. Mid-Cap and Small-Cap indices also fell by 0.4 per cent and 0.1 per cent.

In IPO action, HDB Financial Services made a strong market debut, listing 13 per cent above its issue price and closing with a 13.6 per cent gain.

The real estate index continued its downward streak, slipping another 1.4 per cent and totaling nearly 5 per cent losses over five sessions.

Market Update at 12:15 PM: Dalal Street gave up its early gains on Wednesday, July 2, as profit booking took centre stage. The session began on a positive note, but selling pressure dragged the indices lower by mid-morning. The Nifty 50 was trading at 25,496, down by 46 points or 0.18 per cent, while the Sensex fell 170 points or 0.21 per cent to 83,527 around 12:12 p.m. Market breadth remained weak, with 1,927 stocks in the red against 1,399 advancing, and 158 remaining unchanged.

Sector-wise, performance was mixed. The Nifty Metal index led the pack with a 0.8 per cent gain, while IT, Pharma, and Auto sectors posted marginal upticks. On the flip side, Realty emerged as the biggest laggard, falling 0.6 per cent, followed by Media and PSU Banks with losses of 0.5 per cent and 0.3 per cent, respectively. FMCG stocks continued to face headwinds, while Energy and Infra indices saw flat to marginal declines.

Midcap stocks were largely stable, slipping just 0.1 per cent, but smallcaps came under notable pressure, declining by 0.4 per cent.

HDB Financial Services made its market debut on a strong note, listing at Rs 835 on the NSE—a 12.84 per cent premium over its issue price. This performance exceeded grey market expectations, which had factored in gains of 8-10 per cent on listing day. The Rs 12,500-crore IPO had a price band of Rs 700-740 per share.

Market Update at 10:00 AM: India’s equity indices opened slightly higher on Wednesday, buoyed by optimism following U.S. President Donald Trump’s statement suggesting a potential trade deal between the U.S. and India. Supporting this sentiment, U.S. Treasury Secretary Scott Bessent noted that both countries were close to finalising an agreement that could help India avoid steep tariff hikes, with a key deadline set for July 9.

By 9:15 a.m. IST, the Nifty 50 had edged up 0.18 per cent to 25,588.3, while the BSE Sensex gained 0.11 per cent to reach 83,790.72. Out of 13 key sectoral indices, 11 were trading in positive territory. Broader market indices also reflected strength, with the Nifty Smallcap rising 0.25 per cent and the Nifty  Midcap inching up 0.1 per cent.

Market participants are closely watching the listing of HDB Financial Services (HDBF.NS), which is set to debut after raising USD 1.5 billion in its IPO — the largest ever by an Indian non-banking finance company. The offering attracted strong investor interest, with bids crossing USD 19 billion. HDB Financial is a subsidiary of HDFC Bank, India’s top private-sector lender.

Pre-Market Update at 8:00 AM: Indian markets are likely to begin Wednesday’s session with a cautious tone, mirroring the mixed trends seen in global indices. As of 7:31 AM, the GIFT Nifty was trading around the 25,668 level—12 points higher than its previous close—indicating a muted start for domestic equities.

Asian markets were largely in the red this morning, reflecting the subdued cues from Wall Street, where the Nasdaq and S&P 500 ended lower on Tuesday.

HDB Financial Services, an NBFC and a subsidiary of HDFC Bank, is all set to list on Indian exchanges today. The Rs 12,500 crore IPO received robust demand, with an overall subscription of 17.65 times. The offering included Rs 2,500 crore in fresh equity and Rs 10,000 crore through an offer-for-sale. The Qualified Institutional Buyers (QIB) portion alone was subscribed 31.73 times, highlighting strong institutional participation. With the grey market premium hovering around Rs 71, the stock is expected to list near Rs 811—about 9.6 per cent above its issue price of Rs 740.

Foreign Institutional Investors (FIIs) turned net sellers on Tuesday, offloading shares worth Rs 1,970.14 crore. In contrast, Domestic Institutional Investors (DIIs) made net purchases of Rs 771.08 crore.

On Tuesday, benchmark indices ended marginally higher. The Sensex rose by 90.83 points (0.11 per cent) to close at 83,697.29, while the Nifty 50 gained 24.75 points (0.10 per cent) to settle at 25,541.80, maintaining its hold above the 25,500 level.

Asian stocks opened weak, taking cues from Wall Street’s overnight performance. In the U.S., the Dow Jones advanced by 400.17 points (0.91 per cent) to end at 44,494.94. However, the S&P 500 dropped by 6.94 points (0.11 per cent) to close at 6,198.01, and the Nasdaq Composite fell 166.84 points (0.82 per cent) to 20,202.89, pulled down by losses in tech stocks.

Key U.S. Market Developments

• The U.S. Senate approved a major tax and spending bill championed by President Trump, which could add USD 3.3 trillion to national debt. The bill now heads to the House.
• India and the U.S. are nearing a trade agreement that would reduce tariffs on American exports to India. Treasury Secretary Scott Bessent said this would help avoid an impending tariff hike set during the Trump era.
• U.S. job vacancies rose unexpectedly in May, reaching 7.77 million, an increase of 374,000 from April, as per the JOLTS report.
• Manufacturing activity in the U.S. continued to contract in June, with the ISM manufacturing PMI inching up to 49.0 from 48.5, still below the 50-mark threshold indicating expansion.

Gold remained flat ahead of U.S. payroll data. Spot gold was unchanged at USD 3,338.22 per ounce, while U.S. gold futures held at USD 3,347.80.

For today, RBL Bank remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.