Indian equity markets experienced notable fluctuations between June 26 and July 8, 2025. The Sensex surged by as much as 850 points, while the Nifty index crossed key levels, moving above 25,500 and reaching near 25,700 at its peak. The Bank Nifty index hit multiple record highs during this period, surpassing 57,400 for the first time, with shares of HDFC Bank and Axis Bank rising over 1%. Positive global cues and easing Middle East tensions initially supported the market rally, alongside strong performances in oil, gas, metals, and PSU stocks. However, the market's momentum was tempered by concerns over US-India trade tensions and uncertainties surrounding new tariffs announced by the US administration under President Donald Trump. These trade-related jitters led to profit booking, causing the Sensex to slip by up to 650 points from intraday highs and the Nifty to dip below 25,400 on several occasions. Broader market indices, including small and midcap stocks, saw their winning streaks end amid this volatility. The India VIX, a measure of market volatility, rose by up to 2% during periods of decline. Despite these setbacks, optimism around a potential trade deal helped the markets recover towards the end of the period, with the Nifty closing above 25,500 and the Sensex gaining around 300 points on July 8. Sector-wise, IT, pharma, FMCG, and financial stocks showed mixed performances, with financials and PSU banks both leading gains and lagging at different times. Overall, the market remained sensitive to geopolitical developments and trade negotiations between India and the US, reflecting investor caution amid ongoing tariff uncertainties.