Indian stock markets closed in the red on Wednesday, July 2, as benchmark indices retreated amid broad-based selling. The BSE Sensex fell 312.68 points to close at 83,384.61, while the Nifty 50 declined 98 points to settle at 25,443.80, dragged by sharp losses in financial, real estate, and media sectors.

Metal and auto stocks resist the slide

Despite the weak tone, metal and auto stocks held ground. The Nifty Metal index rose over 1 per cent, with strong moves in Tata Steel and JSW Steel. Auto stocks, led by Maruti Suzuki and Hero MotoCorp, also added marginal gains, keeping broader losses in check.

PSU banks, realty, and media under pressure

The biggest drags on the market were PSU banks, realty, and media stocks, with sectoral indices slipping between 0.5–1.9 per cent. Leading the losers on the Nifty were Shriram Finance, Bajaj Finserv, IndusInd Bank, Bajaj Finance, and L&T.

Broader market weakness continues

The weakness extended beyond large-caps, with both BSE MidCap and SmallCap indices down by around 0.4 per cent. Broader sentiment remained cautious amid global cues and stock-specific news.

Buzzing stocks: CCI probe, brokerage downgrades in focus

Asian Paints fell after news that the CCI has launched an investigation into its distribution practices, following a complaint by Grasim Industries.
IndusInd Bank dropped over 3 per cent after Goldman Sachs downgraded the stock to ‘sell’, calling it a “weak franchise” and slashing EPS estimates for FY26 and FY27.

Meanwhile, Paras Defence traded 2 per cent higher on news that France-based CERBAIR plans to buy anti-drone systems worth Rs 22 crore from its subsidiary.
Gabriel India hit the upper circuit for the second straight day on the back of company restructuring news.

Closing view

Markets ended the day lower as risk-off sentiment prevailed, especially in rate-sensitive and cyclical sectors. However, resilience in metals and autos offered a glimmer of support. Investors now await key macroeconomic data and corporate earnings for further direction.