On July 2, 2025, Indian stock markets ended lower, with benchmark indices Sensex and Nifty paring early gains amid selling pressure in major shares including HDFC Bank, Larsen & Toubro, and Reliance Industries. The decline was influenced by foreign fund outflows and concerns ahead of the impending U.S. tariff deadline. The Nifty Bank index fell below a three-month low, declining approximately 1%, with PSU banks also down over 1%, including Bank of Maharashtra and Bank of Baroda, which dropped more than 2% each. IndusInd Bank shares fell over 3% following a negative brokerage note, with Goldman Sachs downgrading its price target to 60% below its 2024 peak. Goldman Sachs also downgraded SBI Cards to a neutral rating, maintaining a target price of ₹1,006 per share, citing rising credit costs and balanced risk-reward. Bajaj Finance shares declined 1.48%, while Larsen & Toubro and HDFC Bank shares dropped 1.89% and 1.30%, respectively. Market participants are watching for consolidation as the Nifty Bank index fell below the 57,000 mark, signaling potential further volatility.