Bulls take the wheel as inflation cools, Nifty cruises past 25,195

Equity benchmarks ended a four-day losing streak with modest gains on Tuesday, as easing CPI inflation lifted investor sentiment. Hopes of a potential rate cut spurred buying interest, pushing all NSE sectoral indices into the green. After a quiet start, the market gathered pace through the day, with the Nifty closing well above 25,150, led by strength in auto, healthcare, and pharma stocks.

The S&P BSE Sensex jumped 317.45 points or 0.39% to 82,570.91. The Nifty 50 index added 113.50 points or 0.45% to 25,195.80. In the past four consecutive trading sessions, the Sensex and the Nifty dropped 1.74% and 1.72%, respectively.

Bajaj Finance (up 1.01%), HDFC Bank (up 0.62%) and ICICI Bank (up 0.57%) boosted the indices.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.83% and the S&P BSE Small-Cap index added 0.95%.

The market breadth was positive. On the BSE, 2,576 shares rose and 1,479 shares fell. A total of 160 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 4.17% to 11.48.

Economy:

India?s retail inflation, measured by the Consumer Price Index (CPI), cooled to a multi-year low of 2.10% in June 2025, thanks to a sharp dip in food prices. The data, released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday, 14 July 2025, marks the lowest year-on-year inflation rate since January 2019. For comparison, CPI inflation stood at 2.82% in May 2025 and 5.08% in June 2024.

India?s trade deficit for June 2025 narrowed to $18.78 billion, compared to $21.88 billion in May, government data showed Tuesday.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.08% to 6.316 from the previous close of 6.311.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.8275 compared with its close of 85.9200 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement rose 0.22% to Rs 97,999.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.12% to 98.

The United States 10-year bond yield shed 0.38% to 4.414.

In the commodities market, Brent crude for August 2025 settlement shed 35 cents or 0.51% to $68.86 a barrel.

Global Markets:

European shares traded higher on Tuesday, as investor sentiment improved following U.S. President Donald Trump?s signal of readiness to negotiate tariffs with the European Union, while attention shifted to upcoming corporate earnings.

Most Asian indices ended higher after China's GDP grew 5.2% in the second quarter, according to data from the National Bureau of Statistics. While the growth beat market expectations, it still marked a slowdown from the 5.4% seen in the first quarter.

June?s economic indicators in China offered a mixed bag. Retail sales growth eased to 4.8% year-on-year, down from 6.4% in May. On the brighter side, industrial output beat forecasts, rising 6.8% year-on-year, while fixed asset investment climbed 2.8% in the first half of 2025. The urban unemployment rate held steady at 5% in June, unchanged from May but lower than the two-year high of 5.4% in February.

Over in the US, the S&P 500 inched up on Monday after President Donald Trump signaled willingness to negotiate on trade, including with the European Union. The gesture helped calm market jitters over a potential global trade war. By the closing bell on the NYSE, the Dow Jones Industrial Average was up 0.20%, the S&P 500 gained 0.14%, and the NASDAQ Composite added 0.27%.

Among standout movers, shares of Palantir Technologies surged 4.96%, or $7.05, to hit an all-time high of $149.15. Boeing Co also soared to a 52-week high, rising 1.62% or $3.67 to $230.51.

Stocks in Spotlight:

HCL Technologies fell 3.31% after the company reported a 10.77% drop in net profit to Rs 3,843 crore for the quarter ended 30 June 2025, compared to Rs 4,307 crore in the previous quarter same fiscal. Revenue from operations increased slightly to Rs 30,349 crore in Q1 FY26, up from Rs 30,246 crore in Q4 FY25.

Sun Pharmaceutical Industries rose 2.71% on launching LEQSELVI (deuruxolitinib) in the United States for the treatment of severe Alopecia Areata.

G M Breweries slipped 3.31% after the company reported a 57.22% decline in standalone net profit of Rs 25.86 crore in Q1 FY26, compared to Rs 60.46 crore posted in Q4 FY25. However, revenue from operations (excluding excise duty) fell 3.82% quarter-on-quarter to Rs 162.86 crore for the quarter ended 30 June 2025. On a year-on-year (YoY) basis, the company?s net profit rose 3.68%, while revenue increased 6.86%.

Deepak Fertilisers & Petrochemicals Corporation rallied 2.02% after the company entered into a long-term agreement with Petronet LNG (PLL) for the regasification of Liquefied Natural Gas (LNG).

Swaraj Engines surged 10.25% after the company's net profit surged 15.69% to Rs 49.97 crore in Q1 FY26 as against Rs 43.19 crore posted in Q1 FY25. Revenue from operations climbed 15.81% YoY to Rs 484.1 crore recorded in the quarter ended 30 June 2025.

Tejas Networks slipped 6.60% after the company reported a consolidated net loss of Rs 193.87 crore in Q1 FY26, a sharp decline from the net profit of Rs 77.48 crore posted in the same quarter last year. Revenue from operations plunged 86.49% to Rs 201.98 crore in Q1 FY26, down from Rs 1,496.07 crore recorded in the corresponding quarter of the previous year.

Tata Technologies advanced 2.13% after the company has reported 5.1% increase in consolidated net profit to Rs 170.3 crore despite a 1.9% fall in revenue from operations to Rs 1,244.3 crore in Q1 FY26 as compared with Q1 FY25.

RailTel Corporation of India rose 1.81% after the company secured an order worth Rs 264 crore from East Central Railway for the implementation of the Kavach system, the indigenous Train Collision Avoidance System (TCAS).

Sambhv Steel Tubes rallied 4.28% after the company reported a 50% year-on-year increase in total sales volume, reaching 92,706 tons in Q1 FY26 compared to 61,908 tons in the same period last year. Value Added Products contributed 79,717 tons to the overall volume, up 47% from a year ago. While sales of structural pipes and tubes dipped to 50,294 tons (from 54,267 tons),

On the financial front, the company declared its Q1 results on 14 July 2025. Net profit rose 45.15% quarter-on-quarter to Rs 16.46 crore, while net sales jumped 34.20% to Rs 495.26 crore

IPO Update:

The initial public offer (IPO) of Anthem Biosciences received bids for 14,35,95,244 shares as against 4,40,70,682 shares on offer, according to stock exchange data at 16:51 IST on Tuesday (15 July 2025). The issue was subscribed 3.26 times.

The issue opened for bidding on Monday (14 July 2025) and it will close on Wednesday (16 July 2025). The price band of the IPO is fixed between Rs 540 and 570 per share. An investor can bid for a minimum of 50 equity shares and in multiples thereof.

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