Nifty and Sensex Rebound After Two-Day Decline; SEBI Probes Jane Street for Derivatives Manipulation

The Nifty 50 index climbed 55.70 points, or 0.22 per cent, to close at 25,461. The Sensex followed suit, advancing 193.42 points, or 0.23 per cent, to settle at 83,432.89.

Market Update at 4:00 PM: Indian equity markets bounced back on Friday, July 4, ending a two-day losing streak, as strong performances from heavyweight stocks like ICICI Bank and Infosys lifted sentiment. The Nifty 50 index climbed 55.70 points, or 0.22 per cent, to close at 25,461—recovering more than 100 points from its intraday low and ending near the day’s high. The Sensex followed suit, advancing 193.42 points, or 0.23 per cent, to settle at 83,432.89.

Gains were broad-based across sectors, with nine of the eleven major indices finishing in the green. The tech sector drew particular interest, supported by a record close for the Nasdaq and encouraging U.S. jobs data, which bodes well for Indian IT firms that derive significant revenue from overseas markets. However, the midcap and smallcap segments showed little movement, with both indices ending flat.

In corporate news, the Securities and Exchange Board of India (SEBI) issued an interim order against global trading firm Jane Street. The regulator alleged that the firm engaged in index manipulation through derivative trades. SEBI’s probe revealed that four entities associated with Jane Street generated profits amounting to Rs 36,502 crore between January 2023 and March 2025, using strategies that may have compromised market integrity.

On the stock-specific front, Bajaj Finance rose 1.66 per cent after reporting a 25 per cent increase in assets under management in its pre-quarter update. Marico shares gained 2.14 per cent, driven by strong rural demand and revenue growth in the June quarter. In contrast, Trent shares tumbled 11.87 per cent due to concerns over near-term growth.

Among sectoral indices, Nifty Realty emerged as the day’s top gainer, jumping 10.91 per cent and bouncing off its 50-day exponential moving average. Raymond’s real estate arm contributed with over 5 per cent gains. Conversely, the Nifty Metal index slipped 0.42 per cent.

In terms of index movers, ICICI Bank (+32.93 pts), Infosys (+22.56 pts), and Reliance Industries (+9.18 pts) added the most to the Nifty’s rise. On the downside, Maruti (-3.95 pts), Eicher Motors (-3.40 pts), and Tech Mahindra (-3.19 pts) were the main laggards.

Market breadth was tilted towards the positive, with 1,578 stocks advancing, 1,347 declining, and 95 remaining unchanged out of 3,020 traded on the NSE. A total of 59 stocks hit new 52-week highs, while 35 stocks touched their 52-week lows. Meanwhile, 101 stocks hit upper circuits and 45 were locked in lower circuits.

Market Update at 12:15 PM: Indian equities ended mixed as caution prevailed among investors ahead of the deadline for U.S. President Donald Trump's proposed tariffs. The BSE Sensex slipped 179.8 points or 0.22 per cent to 83,059.67, while the Nifty 50 managed to gain 55 points or 0.21 per cent to settle at 25,350.15.

Leading the gains on the Sensex were Bajaj Finance, Bharat Electronics, Bajaj Twins, Hindustan Unilever, and Eternal. On the other hand, Trent, Tech Mahindra, Tata Steel, Maruti Suzuki, M&M, Asian Paints, and Sun Pharma emerged as the Top Losers.

In the broader market space, the Nifty Midcap 100 and Smallcap 100 indices each declined by 0.36 per cent. Sectorally, the Nifty Metal index dropped 0.8 per cent, followed by losses in the Auto, Bank, and Consumer Durables indices. However, sectors like FMCG, IT, Pharma, Realty, and Oil & Gas witnessed gains.

Market Update at 9:45 AM: Indian stock markets opened on a flat note this Friday, with investors adopting a cautious approach amid expectations of a potential trade agreement between India and the U.S. and reacting to recent regulatory developments.

As of 9:15 a.m. IST, the Nifty 50 edged up by 0.09 per cent to 25,428.85, while the BSE Sensex saw a slight rise of 0.08 per cent, reaching 83,306.81. Among the major sectoral indices, 12 out of 13 registered mild gains at the opening bell. However, broader market indices, including Small-Cap (CNX Smallcap) and Mid-Cap (CNX Midcap) stocks, showed little movement and traded largely unchanged.

Market participants were also digesting SEBI’s interim order against U.S.-based Jane Street over alleged manipulation of equity derivatives. The regulatory action comes at a time when several global trading giants like Citadel Securities, IMC Trading, Millennium, and Optiver are increasing their footprint in India's rapidly expanding derivatives segment.

Meanwhile, attention remains focused on the upcoming July 9 deadline set by U.S. President Donald Trump for reciprocal trade tariffs, as markets watch for signs of progress on a possible India-U.S. trade agreement.

Pre-Market Update at 7:45 AM: Indian equity benchmarks Nifty 50 and Sensex are expected to start Friday’s session on a strong note, supported by favorable global cues and positive sentiment surrounding a potential trade deal. As of 7:25 AM, GIFT Nifty was quoting at 25,529, indicating a 34-point gain from its previous close and suggesting a positive opening for domestic markets.

Asian markets traded in a mixed range amid growing caution from investors, who remain watchful of upcoming tariff deadlines despite optimism from Wall Street’s strong rally. U.S. markets closed at record highs ahead of the July 4 holiday, largely driven by gains in technology stocks and upbeat job data.

In the Indian market, Domestic Institutional Investors (DIIs) continued their buying streak for the fourth straight session, whereas Foreign Institutional Investors (FIIs) remained sellers. On July 3, FIIs offloaded equities worth Rs 1,481.19 crore, while DIIs purchased shares amounting to Rs 1,333.06 crore.

Markets ended slightly in the red on Thursday. After initial gains of nearly 0.5 per cent, both Nifty and Sensex reversed direction in the latter half due to profit booking in financial stocks. The Nifty closed 0.19 per cent lower at 25,405.3, and the Sensex slipped 0.2 per cent to settle at 83,239.47.

Wall Street wrapped up Thursday’s session on a bullish note. The S&P 500 advanced by 51.94 points to 6,279.36, while the Nasdaq jumped 207.97 points to close at 20,601.10, and the Dow Jones climbed 344.11 points to 44,828.53. Nvidia led the rally with a 1.33 per cent gain, taking its market cap to USD 3.89 trillion, just shy of the USD 4 trillion mark, making it the world’s most valuable company ahead of Apple and Microsoft.

The U.S. House approved President Trump's USD 3.4 trillion tax and spending proposal, nicknamed the "One Big Beautiful Bill," in a close 218–214 vote. The plan includes permanent 2017 tax cuts and increased spending on immigration. This is expected to push U.S. national debt past USD 36.2 trillion, according to estimates from the Congressional Budget Office.

U.S. job data showed nonfarm payrolls increasing by 147,000 in June, topping expectations of 110,000. May’s revised figure came in at 144,000. The unemployment rate dropped to 4.1 per cent, with initial jobless claims falling to 233,000 — the lowest in seven weeks.

Gold prices rose 0.2 per cent to USD 3,330.85/oz during early Asian trading, supported by deficit concerns stemming from the new U.S. spending bill. Meanwhile, Brent crude was trading around USD 68.7 per barrel and WTI at USD 67, as new U.S. sanctions on Iranian oil added pressure to the supply outlook.

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