TLDR

📈 Market Recap: July 15, 2025

Indian equity benchmarks snapped a four-session losing streak on Tuesday as cooling inflation data, FII buying, and strong moves in rate-sensitive sectors lifted sentiment. The BSE Sensex jumped 317 points (+0.39%) to settle at 82,571.0, while the NSE Nifty 50 advanced 113.5 points (+0.45%) to close at 25,195.8. Broader markets outperformed, with the Nifty Midcap 100 rising 1.2% and the Nifty Smallcap 100 gaining 1.5%, driven by fresh interest in PSU banks, auto, and realty counters. Market breadth on the NSE stayed firm with 1,732 stocks advancing, 768 declining, and 85 unchanged. India VIX slipped sharply by 4.2% to 11.48, reflecting cooling volatility as traders positioned for upcoming Q1 earnings and global macro signals.

Key Drivers:

• Retail Inflation Softens Sharply: India’s June retail inflation eased to a six-year low of 2.10%, driven by a 3.7% drop in food prices and lower fuel costs, supporting sentiment and rate cut hopes for H2 FY26. Analysts expect the RBI to cut policy rates by 25–50 bps in its next two reviews.

•  FII Inflows Resume After Outflows: After net selling ₹8,532 crore in equities through early July, Foreign Portfolio Investors (FPIs) turned net buyers on Monday with net purchases of ₹1,240 crore, as the rupee firmed up to ₹85.81/USD and stable macro signals revived risk appetite. Domestic institutional investors (DIIs) added ₹1,035 crore of shares.

• Sector Rotation to Cyclicals & Rate Sensitives: Cyclical sectors led the rebound. PSU Banks gained 2.1%, Realty index rose 2.8%, and Auto advanced 1.7% on hopes of a pick-up in rural demand and infrastructure momentum. Meanwhile, IT stocks underperformed as weak margin guidance from HCLTech capped broader upside.

Today’s Top Stories:

1. MTNL Defaults ₹8,585 Cr to Seven PSU Banks: MTNL defaulted on ₹8,585 cr loans across seven PSU banks; lenders weigh asset sales and restructuring.

2. Tesla Enters India with Mumbai Showroom & Model Y Launch: Tesla opened its first showroom in Mumbai, launched Model Y at ₹59.89 L+, with Mahindra welcoming Musk to India’s EV turf.

3. ₹1,045 Cr Bogus Claims Withdrawn by 40K Taxpayers After I‑T Crackdown: Forty thousand taxpayers withdrew ₹1,045 cr in fake claims as the I‑T Dept cracks down using AI and field camps.

4. Spunweb Nonwoven IPO Oversubscribed 12×; GMP Up 43%: Spunweb Nonwoven’s IPO was oversubscribed 12×, with grey market premium surging 43% on listing optimism.

5. India’s Trade Deficit Narrows to $18.78 B in June: The Trade gap shrank to $18.78 bn as imports dipped by 3.7%; a substantial services surplus cushioned the overall deficit.

Market Snapshot

Nifty 50 Index Heatmap

Top Gainers & Losers

TOP STORIES

1. MTNL Defaults ₹8,585 Cr to Seven PSU Banks

• Defaults reported: MTNL has defaulted on ₹8,584.9 cr in principal and interest payments to seven PSU banks as of June 30, including ₹3,733 cr to Union Bank and ₹2,434 cr to Indian Overseas Bank.

• Total debt: Its overall financial indebtedness stands at ₹34,484 cr, comprising ₹8,585 cr in bank loans, ₹24,071 cr in sovereign‑guaranteed bonds, and ₹1,828 cr owed to the DoT.

• Market reaction: MTNL stock closed around ₹49.9 on BSE; lenders are reportedly open to restructuring but have ruled out haircuts, focusing instead on asset monetisation and government support.

$MTNL.NSE ( ▲ 0.26% ) 

2. Tesla Enters India with Mumbai Showroom & Model Y Launch

• Launch details: Tesla opened its first “Tesla Experience Centre” at Maker Maxity Mall, BKC, Mumbai, and began bookings for the Model Y Rear‑Wheel‑Drive at ₹59.89 lakh and Long‑Range variant at ₹67.89 lakh (on‑road ₹61.07 lakh and ₹69.15 lakh respectively.

• Welcomed by industry & govt: Anand Mahindra tweeted “Welcome to India…see you at the charging station,” while Maharashtra CM Devendra Fadnavis invited Tesla to explore local manufacturing and charging infrastructure.

• Hurdles remain: High import duties (70%) mean a final price of $70k+, posing affordability challenges. Tesla plans no local production yet but will install 16 Superchargers each in Mumbai and Delhi, with deliveries from Q3/Q4 CY2025.

3. ₹1,045 Cr Bogus Claims Withdrawn by 40K Taxpayers After I‑T Crackdown

• Voluntary corrections: About 40,000 taxpayers revised their returns in the past four months, withdrawing fraudulent claims totalling ₹1,045 crore, following outreach by the I‑T Department via SMS, emails, and physical camps.

• Crackdown details: The CBDT launched extensive verification across 150 locations in Maharashtra, Tamil Nadu, Delhi, Gujarat, Punjab, and MP, using AI and ground intel to root out bogus deductions and false TDS claims.

• Next steps: The department will enforce penalties and prosecution for persistent offenders and urges taxpayers to file accurate returns to avoid legal action.

4. Spunweb Nonwoven IPO Oversubscribed 12×; GMP Up 43%

• Strong demand: The initial public offering (IPO) of Spunweb Nonwoven was oversubscribed 12 times, driven primarily by strong institutional investor interest during the first two days of bidding, ₹300–350 crore mobilised.

• Grey market premium: The grey market premium (GMP) surged to ₹43 per share, indicating healthy aftermarket sentiment and strong investor confidence ahead of listing.

• Grey market volumes: Approximately 2,200–2,500 shares traded in the grey market at GMP, showcasing strong private interest and a positive listing bias.

5. India’s Trade Deficit Narrows to $18.78 B in June

• Deficit eases: Merchandise trade gap narrowed to $18.78 bn in June, down from $21.88 bn in May, well below the expected $22.24 bn, driven by a sharper import drop than exports.

• Exports remain flat: Merchandise exports eased marginally to $35.14 bn, hovering near the seven-month low (June 2024: $35.16 bn), while imports declined 3.7% to $53.92 bn, led by reduced crude ($13.7 bn) and gold ($1.8 bn) purchases.

• Services surplus supports: Strong services trade posted a surplus of $15.62 bn as exports reached $32.84 bn while imports totalled $17.58 bn, helping contain the overall trade gap.

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