Mumbai Stock Market Takes a Hit Amid Investor Caution and Mixed Global Trends

The Mumbai stock market faced a decline on Wednesday, driven by selling in IT and oil & gas sectors as investors remained cautious ahead of the earnings season. The BSE Sensex fell by 176.43 points, while the NSE Nifty dropped by 46.40 points. Amidst mixed global trends, key players like HCL Tech and Tata Steel lagged, while Bajaj Finance and Hindustan Unilever saw gains. The market's focus is shifting towards domestic earnings and growth drivers, despite ongoing global trade tensions. Notably, shares of Vedanta plummeted following a critical report from a US short seller. Explore the full article for more insights.

By Narendra Chaudhary Jul 9, 2025, 16:14 IST

Market Overview

Mumbai: The stock market experienced a downturn on Wednesday, primarily influenced by declines in the IT and oil & gas sectors as investors adopted a cautious stance ahead of the earnings season and in light of mixed global market signals.

The 30-share BSE Sensex dropped by 176.43 points, or 0.21%, closing at 83,536.08. At one point during the trading session, it had fallen by 330.23 points, reaching a low of 83,382.28.

Similarly, the 50-share NSE Nifty fell by 46.40 points, or 0.18%, to finish at 25,476.10.

Among the companies listed on the Sensex, HCL Tech, Tata Steel, Tech Mahindra, Reliance Industries, Bharat Electronics, and ICICI Bank were notable laggards.

Conversely, Bajaj Finance, Hindustan Unilever, UltraTech Cement, and Power Grid saw gains.

Vinod Nair, Head of Research at Geojit Investments Limited, commented, "Indian key indices remained mostly range-bound, with domestic consumption themes supporting investor sentiment. Despite ongoing global trade tensions and commodity tariffs, there is a growing focus on domestic earnings and structural growth drivers, including a potential recovery in urban demand and increased infrastructure spending."

In a related note, the US has prolonged the suspension of its reciprocal tariffs from April 2 until August 1.

Shares of Vedanta, a major mining company, fell by 3.38% to close at Rs 440.80 on the BSE after a report from US short seller Viceroy Research labeled the company as "financially unsustainable," posing significant risks to creditors.

Viceroy announced its decision to short Vedanta Resources, the parent company of Vedanta Ltd, following the release of an 85-page report.

In response, Vedanta issued a statement claiming, "The report is a malicious mix of selective misinformation and unfounded allegations aimed at discrediting the Group."

Asian markets showed mixed results, with South Korea's Kospi and Japan's Nikkei 225 closing higher, while Shanghai's SSE Composite index and Hong Kong's Hang Seng ended lower.

European markets were trading positively.

US markets concluded Tuesday with little change.

The global oil benchmark, Brent crude, increased by 0.51% to USD 70.51 per barrel.

According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth Rs 26.12 crore on Tuesday, while Domestic Institutional Investors (DIIs) purchased stocks valued at Rs 1,366.82 crore.

On the previous day, the Sensex had risen by 270.01 points, or 0.32%, closing at 83,712.51, while the Nifty gained 61.20 points, or 0.24%, to finish at 25,522.50.