Indian equity markets opened on a subdued to slightly positive note on Tuesday, July 1, 2025, reflecting a mix of global economic signals and cautious domestic sentiment. Despite US markets hitting new record highs overnight, major Indian benchmarks showed only modest gains. At the open, the Nifty50 traded higher by over 43 points (0.17%) at 25,560, while the BSE Sensex climbed 158 points (0.19%) to 83,764.18. By mid-day, the Sensex was up 93.53 points at 83,699.99, and the Nifty50 rose 27.50 points to 25,544.55.

Broader markets experienced mixed performance; the Nifty Midcap 100 initially rose 0.23% but later fell 0.16%, and the Nifty SmallCap 100 was down 0.11%, indicating a narrower rally. The Bank Nifty gauge also saw mild gains of 0.13% (74.4 points) at 57,387.15. Top Nifty50 gainers in early trade included Apollo Hospitals, Asian Paints, Bharat Electronics, IndusInd Bank, and Bharti Airtel, with some like M&M, Reliance Industries, Jio Financial Services, and Tata Motors also strong performers. Laggards included Axis Bank, Trent, Tata Steel, Cipla, and Shriram Finance.

Investor sentiment was largely influenced by key global and domestic cues. Globally, attention was on the final manufacturing PMI readings for June from India and China, and a crucial speech by US Federal Reserve Chair Jerome Powell at the 2025 European Central Bank Forum in Portugal. Asian markets were mixed; South Korea's Kospi surged, tracking Wall Street, while Japan's Nikkei slipped due to renewed tariff threats from US President Donald Trump. US stock indices futures edged higher after the S&P 500 and Nasdaq marked fresh record closing highs. Canada's decision to scrap its planned digital services tax also eased trade friction with the US, contributing to positive global cues.

Domestically, the primary market remained active with several mainboard and SME IPOs debuting or opening for subscription, including Ellenbarrie Industrial Gases, Kalpataru, and Vandan Foods. Raymond Realty, the demerged entity of Raymond Ltd, successfully listed on July 1. Institutional investor activity showed a familiar pattern: Foreign Institutional Investors (FIIs) were net sellers, offloading shares worth approximately ₹787.62 crore (or ₹831 crore), while Domestic Institutional Investors (DIIs) provided strong support, purchasing equities worth around ₹3,383.01 crore (or ₹3,497 crore) on June 30.

Sectoral performance was mixed. Oil & gas, IT, and realty indices led the gains, with Nifty Realty rising over 0.7%, driven by stocks like Raymond, Anant Raj, Oberoi Realty, and DLF. Conversely, the Nifty PSU Bank index was the biggest laggard after sharp gains in the previous session, alongside metal, financial services, and pharma indices which also saw declines. Crude oil prices edged down on expectations of an OPEC+ output hike in August and concerns over higher U.S. tariffs, while gold advanced due to a weakening dollar.

From a technical standpoint, experts suggested a 'buy-on-dips' approach. For the Nifty50, support levels were identified at 25,325-25,425, with a strong buy zone at 25,125-25,265. Resistance was seen at 25,600, with a potential rally towards 26,000 if 25,740 is breached. The Nifty formed a bearish engulfing candlestick pattern, signaling potential weakness, but its short-term trend remained positive above the 5-day EMA. The India VIX, or