GIFT Nifty:

GIFT Nifty July 2025 futures were trading 2 points higher in early trade, suggesting a flat opening for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth 1,970.14 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 771.08 crore in the Indian equity market on 1 July 2025, provisional data showed.

According to NSDL data, FPIs have bought shares worth Rs 45.87 crore in the secondary market during July 2025. This follows their purchase of shares worth Rs 8466.77 crore in June 2024.

Global Markets:

Asian stocks were mixed on Wednesday as investors evaluated recent comments from U.S. Federal Reserve Chair Jerome Powell. Powell stated on Tuesday that the central bank would have already cut interest rates if not for U.S. President Donald Trump's tariff policies.

In Singapore, stocks touched a record high on Wednesday morning, supported by local market strength despite broader global uncertainty.

Overnight in the United States, major indices ended the session with mixed results. The S&P 500 dipped 0.11% and the Nasdaq Composite declined 0.82%. In contrast, the Dow Jones Industrial Average rose 0.91%, reflecting some rotation into blue-chip stocks.

Investor sentiment remained cautious ahead of the July 9 tariff deadline, when reciprocal tariffs are scheduled to be reimposed unless a resolution is reached.

Tesla shares dropped 5.3% after President Trump criticized CEO Elon Musk, claiming he has benefited disproportionately from government subsidies. Trump also called for a review of Tesla's federal support.

The tension follows Musk's public criticism of a large tax and spending bill, which narrowly passed in the Senate on Tuesday. The bill is expected to add approximately 3.3 trillion dollars to the national debt. It now moves to the House of Representatives for further consideration, with President Trump aiming to sign it into law by the July 4 holiday.

Traders are now focused on Thursday's U.S. nonfarm payrolls report, which may influence the Federal Reserve's decision on a potential rate cut in July.

Domestic Market:

The domestic benchmark indices closed slightly higher on Tuesday. Investor sentiment remained cautious as markets awaited developments in U.S. trade talks ahead of the July 9 tariff deadline. Buying was seen in PSU banks, energy, and metal stocks, while FMCG and IT shares faced selling pressure. The S&P BSE Sensex rose 90.83 points or 0.11% to 83,697.29. The Nifty 50 index added 24.75 points or 0.10% to 25,541.80.

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