TLDR

📈 Market Recap: July 14, 2025

Indian equity benchmarks extended losses for a fourth session on Monday as weak IT earnings, renewed global tariff tensions, and sustained foreign outflows pressured sentiment. The BSE Sensex shed 247 points (–0.30%) to settle at 82,253.5, while the NSE Nifty 50 slipped 67.6 points (–0.27%) to close at 25,082.3. Broader markets, however, fared better, with the Nifty Midcap 100 gaining 0.7% and the Nifty Smallcap 100 rising 1.0%, driven by stock-specific action in energy, realty, and FMCG counters. Market breadth on the NSE remained positive with 1,450 stocks advancing, 980 declining, and 85 unchanged. Turnover stayed moderate as traders looked ahead to fresh cues from Q1 earnings, US inflation data, and global trade developments.

Key Drivers:

• Global Trade Tensions & US Tariffs: U.S. President Trump’s announcement of 30% tariffs on EU and Mexico imports (effective August 1), plus earlier threats on Canada, rattled markets. This sparked risk-off sentiment, particularly weighing on export-sensitive and IT stocks.

• IT Sector Earnings Chill: Disappointing Q1 earnings from major IT firms, notably TCS, along with cautious guidance ahead, intensified selling in Nifty IT, extending last week's 4% drop and prompting renewed profit-taking today.

• Foreign Fund Outflows & Technical Selling: Ongoing FII selling has continued into its fourth week, exacerbating technical pressure as major indices approach key support (Sensex 82,000–82,200; Nifty 25,000). Caution among institutional investors has intensified the downtrend.

Today’s Top Stories:

1. HCL Tech Q1 Profit Drops 10% YoY, ₹12 Dividend Declared: PAT at ₹3,843 cr, revenue up 8% YoY; ₹12/share interim dividend announced.

2. Retail Inflation Hit a Six‑Year Low at 2.10% in June: June CPI eased sharply; food inflation was negative, and the rate cut hopes rose.

3. Temasek’s India Exposure Hits $50 bn; eyes $3–4 bn Annual Investments: Singapore fund boosts stake, plans significant new commitments.

4. India Q3 FY25 Services Surplus Offsets Merchandise Deficit: Services trade surplus at $52.3 bn covers wider goods trade gap.

5. India Hits 50% Non‑Fossil Fuel Power Capacity, Five Years Early: Renewables cross halfway mark of total capacity; ahead of target.

Market Snapshot

Nifty 50 Index Heatmap

Top Gainers & Losers

TOP STORIES

1. HCL Tech Q1 Profit Drops 10% YoY, ₹12 Dividend Declared

• Profit down: Q1 consolidated PAT at ₹3,843 cr, down 10% YoY; missed Street estimate of ₹4,224 cr.

• Revenue up: Revenue rose 8% YoY to ₹30,349 cr, marginally beating estimates.

• Dividend: Board declared interim dividend of ₹12/share; record date 18 July, payout on 28 July.

$HCLTECH.NSE ( ▼ 1.02% ) 

2. Retail Inflation Hit a Six‑Year Low of 2.10% in June

• Headline inflation eases: June retail inflation fell to 2.10% YoY, the lowest since January 2019, down from 2.82% in May and well below the 2.5% estimate.

• Food-led decline: Food inflation turned negative (-1.06%), driven by broad-based softness in vegetables, cereals, pulses, milk and spices.

• Policy impact: The easing supports RBI’s stance for potential rate cuts later this year, though core inflation (4.4–4.6%) remains elevated.

3. Temasek’s India Exposure Hits $50 bn, eyes $3–4 bn Annual Investments

• Exposure milestone: As of March 2025, Temasek’s total investments in India surged to over USD 50 billion, up from USD 37 billion a year earlier.

• Future commitment: The Singapore‑based sovereign investor plans to deploy USD 3–4 billion annually in India, focusing on financial services, healthcare, and sustainable sectors.

• Confidence signal: The sharp rise in exposure underscores Temasek’s long‑term confidence in India’s growth trajectory and its partnering strategy across the lifecycle, from early-stage to IPO.

4. India Q3 FY25 Services Surplus Offsets Merchandise Deficit

• Services boom: India posted a USD 52.3 billion services trade surplus in Q3 FY25 (Oct–Dec 2024), driven by a 17% YoY growth in IT, consulting and R&D exports, according to NITI Aayog’s Trade Watch report.

• Goods gap widens: Merchandise exports rose 3% to USD 108.7 billion, while imports climbed 6.5% to USD 187.5 billion, widening the goods trade deficit.

• Net balance: Robust services surplus cushioned the expanding merchandise deficit, highlighting India’s strengths in the global services economy.

5. India Hits 50% Non‑Fossil Fuel Power Capacity, Five Years Early

• Milestone reached: India now has 242.8 GW of non-fossil fuel power generation capacity, 50% of its total 484.8 GW installed capacity, surpassing its 2030 target five years ahead of time.

• Minister’s note: Union Minister Pralhad Joshi hailed this “giant stride towards a greener, cleaner Bharat by 2047,” highlighting India’s commitment to international climate goals.

• Future roadmap: With the government aiming for 500 GW of renewable generation by 2030, this milestone sets a strong foundation for future expansion.

GYAANI HOT TAKES