TLDR
📈 Market Recap: July 10, 2025
On July 10, 2025, Indian equity markets ended slightly in the red as investors turned cautious ahead of key earnings and amid global trade worries. The Nifty 50 slipped 0.19% to 25,423.15, while the Sensex fell 0.16% to 83,389.06, dragged by weakness in IT and telecom stocks. Traders booked profits in heavyweight counters like TCS before its Q1 results. Metal and realty shares bucked the trend with modest gains, and Maruti Suzuki outperformed with a 1% rise. The rupee held steady near ₹85.65 per dollar. All eyes are now on TCS’s results and any updates on India–U.S. trade talks to gauge the market’s next move.
Key Drivers:
Weak IT & telecom stocks: investors remained wary ahead of TCS Q1 earnings.
Derivatives market slump: EBI’s July 4 ban on Jane Street weighed on options activity.
Trade uncertainty: markets remain cautious awaiting U.S.–India tariff discussions
Today’s Top Stories:
Derivatives Volumes Plunge After Jane Street Ban: Bank-Nifty options turnover has halved as prop desks withdraw, with analysts expecting liquidity and volumes to normalise within six weeks.
TCS Q1 FY26: Revenue Miss, Profit Beat: TCS missed revenue estimates but beat profit with ₹127.6 bn net on wage-hike deferral, as order book slipped to $9.4 bn.
SBI Preps $2.9 Bn Basel-III Bond Issue: India’s largest lender will consider raising up to ₹25,000 crore in tier-2 bonds on 16 July to reinforce capital buffers for infra-loan growth.
India Sends Trade Delegation to Washington: Officials resume talks on auto, steel and farm tariffs, seeking a deal before the 1 August deadline that could protect $2.9 billion in exports.
Mahindra & Uno Minda Mull Domestic Rare-Earth Magnet Plants: Automotive groups explore building EV-grade magnet factories within two years, aiming to cut 90% China dependence under India’s proposed incentive scheme.
TOP STORIES
1. Derivatives Volumes Plunge After Jane Street Ban
DALL-E
Turnover snapshot: Options premium turnover has fallen by roughly 50%, with Bank Nifty contracts suffering the sharpest drop.
Market reaction: Proprietary desks have pulled back while retail and HFT players wait for regulatory clarity; liquidity pockets have widened bid-ask spreads.
Outlook: Analysts expect normalisation in 4–6 weeks as alternative market-makers step in and SEBI rolls out real-time surveillance upgrades.
Options premium turnover has halved after SEBI’s ban on Jane Street; volumes may normalise in 4–6 weeks. How concerned are you about the current F&O liquidity drop?
2. TCS Q1 FY26: Revenue Miss, Profit Beat
DALL-E
Result snapshot: Revenue rose 1.3 % YoY to ₹634.4 bn (below estimates), but net profit climbed 6 % to ₹127.6 bn after wage-hike deferral.
Order book: New deals totalled $9.4 bn, down from $12.2 bn in Q4; four of six verticals contracted.
Street view: Shares eased as investors braced for spill-over pressure on peer IT names.
TCS Q1 revenue rose just 1.3% YoY, but profit beat forecasts due to wage-hike deferrals. How do you read this for the broader IT sector?
3. SBI Preps $2.9 Bn Basel-III Bond Issue
DALL-E
Capital plan: State Bank of India will consider raising up to ₹25,000 crore in Basel III-compliant tier-2 bonds on 16 July.
Strategic aim: Funds will bolster the capital buffer as global funding costs stay elevated and infra-loan growth accelerates.
Sector signal: Move underscores an ongoing capital-strategy trend, complementing recent QIPs by private peers.
4. India Sends Trade Delegation to Washington
DALL-E
Update: India Inc reported 582 deals worth $17 billion in Q2 FY25, marking a sharp 48% decline in deal value from Q1, amid global uncertainty.
Detail: While M&A and IPO volumes tumbled, private equity remained stable with 357 deals valued at $7.4 billion, the second‑highest quarterly PE volume since Q4 2022.
Significance: The slump was broad-based, with domestic M&A at a 2‑year low and only 12 IPOs raising $1.9 billion, though late‑quarter pick‑ups (e.g., Leela Hotels, Ather Energy) hint at a potential rebound.
India to resume tariff talks with the US before the August deadline. How important is this for export-focused sectors?
5. Mahindra & Uno Minda Mull Domestic Rare-Earth Magnet Plants
DALL-E
Project scope: Auto majors exploring 1–2 year build-outs to localise EV-grade rare-earth magnets, now 90% sourced from China.
Policy tailwind: Plans align with draft incentives and a national stockpile scheme aimed at supply-chain security.
Industry impact: In-house magnets would support Mahindra’s upcoming e-SUV line and expand Uno Minda’s EV components portfolio.
Mahindra & Uno Minda plan domestic rare-earth magnet facilities for EVs. What’s your view on this localisation push?
GYAANI HOT TAKES
Disclaimer:
The IndiaStox Research Hackathon is intended for educational and community engagement purposes only. Submissions do not constitute investment advice, nor should they be construed as recommendations to buy or sell any securities.
By participating in the IndiaStox Research Hackathon and submitting content, you grant IndiaStox a worldwide, royalty-free, perpetual, and irrevocable license to use, reproduce, modify, publish, distribute, and display your submission, whether in whole or in part, across its digital platforms and in promotional materials. This license extends to both commercial and non-commercial purposes, including content seeding, editorial use, and advertising.
By submitting your work, you confirm that it is your original creation and that you have the right to grant the above license.
