Sensex, Nifty trade flat in early deals

Indian equity benchmarks started the session in green on Tuesday tracking positive cues from global peers. Soon, markets turned volatile and struggling for direction in early deals, while broader indices -- BSE Mid & Small cap -- are outperforming larger peers with decent gains. Traders are awaiting further clarity on what transpired between trade representatives of the US and China as they met for Day 1 of their talks in London. Some support came as Commerce and Industry Minister Piyush Goyal said that the free trade agreement (FTA) between India and the four-nation European bloc EFTA is likely to come into force from September. 

On the global front, Asian markets are trading mostly higher, following the mixed cues from Wall Street overnight, amid easing trade war tensions between the US and China after the two superpowers began high-level trade talks in London, with negotiations expected to continue on Tuesday. The tariff war between the two countries has already rattled the global economy.

Back home, agriculture related stocks are in focus as Union Agriculture Minister Shivraj Singh Chouhan said agriculture production in the country increased by 40 per cent in the last 10 years and that the sector saw growth rate of 5.4 per cent in the fourth quarter of 2024-25 financial year. In stock specific development, Nibe traded higher as it entered into a Licensing Agreement with the Defence Research and Development Organisation (DRDO), Ministry of Defence, India, for the transfer of technology related to the modular bridging system of various lengths, ranging from 14m to 46m.

The BSE Sensex is currently trading at 82402.57, down by 42.64 points or 0.05% after trading in a range of 82240.40 and 82680.79. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.20%, while Small cap index was up by 0.36%.

The top gaining sectoral indices on the BSE were IT up by 1.26%, Metal up by 0.83%, Basic Materials up by 0.77%, TECK up by 0.77% and Industrials up by 0.31%, while Consumer Durables down by 0.25%, Bankex down by 0.21%, Telecom down by 0.14%, Realty down by 0.12% and Consumer Discretionary down by 0.02% were the top losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 1.34%, Tech Mahindra up by 1.29%, Bharat Electronics up by 1.13%, Tata Motors up by 0.96% and HCL Technologies up by 0.89%. On the flip side, ICICI Bank down by 1.04%, Bajaj Finserv down by 0.98%, Asian Paints down by 0.89%, Eternal down by 0.80% and Trent down by 0.64% were the top losers.

Meanwhile, expressing optimism over European FTA, Commerce and Industry Minister Piyush Goyal has said that the free trade agreement (FTA) between India and the four-nation European bloc EFTA is likely to come into force from September. The two sides signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024.

Under the pact, India has received an investment commitment of $100 billion in 15 years from the grouping while allowing several products such as Swiss watches, chocolates, and cut and polished diamonds at lower or zero duties. The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland.

He said the agreement has received approval from the Parliaments of all four countries. In Switzerland, there is an objection period open until July 10. July and August are holiday months there. He held bilateral meetings with over a dozen companies and most of them are keen to invest in India. He noted that the Swiss firms have shown interest in sectors such as pharma, cybersecurity, and machinery manufacturing.

The CNX Nifty is currently trading at 25124.35, up by 21.15 points or 0.08% after trading in a range of 25055.45 and 25199.30. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Grasim Industries up by 3.63%, Indusind Bank up by 1.95%, Bharat Electronics up by 1.52%, Ultratech Cement up by 1.38% and Tech Mahindra up by 1.22%. On the flip side, Asian Paints down by 1.09%, Bajaj Finserv down by 1.08%, ICICI Bank down by 0.99%, HDFC Life Insurance down by 0.70% and SBI Life Insurance down by 0.67% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted jumped 421.1 points or 1.93% to 22,211.39, Nikkei 225 surged 351.21 points or 0.92% to 38,439.78, Jakarta Composite gained 85.3 points or 1.2% to 7,198.73, Hang Seng advanced 79.83 points or 0.33% to 24,261.26, KOSPI increased 15.52 points or 0.54% to 2,871.29 and Shanghai Composite was up by 3.75 points or 0.11% to 3,403.52, while Straits Times fell 4.34 points or 0.11% to 3,931.98.