Indian equity markets experienced notable volatility between late June and mid-July 2025, influenced by a mix of global cues, easing and escalating trade tensions, and sector-specific movements. The Sensex surged as much as 850 points with the Nifty crossing 25,500 in late June, driven by positive global factors and easing Middle East tensions. Gains were led by oil and gas, metals, PSU banks, and outperforming small and midcap stocks. However, the market's momentum faltered at the end of June and early July as US-India trade deal jitters, tariff uncertainties, and profit booking led to declines, with the Sensex dropping 250 to 650 points at various points and the Nifty slipping below 25,500 multiple times. Volatility spiked, reflected in a 2% rise in India VIX, amid concerns over trade negotiations and tariff impacts. The market showed intermittent recovery in mid-July, with the Sensex rising over 350 points and the Nifty reclaiming levels above 25,200, supported by easing inflation and buying in IT, PSU banks, and auto sectors. Despite these rebounds, the market remained sensitive to geopolitical and trade developments, including the ongoing Trump-Powell saga and Citi's downgrade of India, which contributed to sharp pullbacks and selling pressure in IT and PSU bank stocks. The Nifty closed below 25,200 on July 17 amid selling in IT stocks, while specific stocks like Ixigo saw gains on strong quarterly results. Overall, the market oscillated between optimism on trade deal prospects and caution due to unresolved trade tensions and global uncertainties.