Key indices snap 2-day falling streak; Nifty settles above 25,050 mark

Snapping the two-day falling streak, Indian equity benchmarks ended higher by around half percent on Monday following buying in blue-chip stocks HDFC Bank and ICICI Bank after their quarterly earnings. Firm trend in Asian markets and fresh foreign fund inflows also supported the markets. 

Some of the important factors in today’s trade:

India needs to be careful, clever while negotiating trade agreements with US: Former RBI Governor Raghuram Rajan has said that India needs to be ‘very careful and clever’ while negotiating trade agreements with the US, especially with regard to the agriculture sector, which is heavily subsidised by developed countries. 

India’s $15 billion oil exports to EU at risk amid new Russia sanctions: The Global Trade Research Initiative (GTRI) has said that India's petroleum product exports worth $15 billion to the European Union (EU) may be at risk as Brussels moves to restrict imports of Russian crude oil refined in third countries. 

Rupee falls against US dollar: Indian rupee depreciated against the US dollar due to consistent dollar demand from oil importers. The uncertainty around the India-US trade deal also kept market participants cautious. 

Automobile sector stocks in watch: Automobile sector stocks were in watch as industry body SIAM said that Automobile exports from India rose 22 per cent year-on-year in the April-June quarter driven by record shipment of passenger vehicles and robust growth in segments like two-wheelers and commercial vehicles. 

Global front: European markets were trading lower as EU leaders prepare for a high-stakes showdown over U.S. tariff threats. Asian markets ended mostly higher on Monday as investors watched the latest trade developments, with U.S. Commerce Secretary Howard Lutnick saying he was confident the U.S. and the EU could reach a trade deal before August 1. 

Finally, the BSE Sensex rose 442.61 points or 0.54% to 82,200.34 and the CNX Nifty was up by 122.30 points or 0.49% to 25,090.70.  

The BSE Sensex touched high and low of 82,274.03 and 81,518.66 respectively. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices ended mixed; the BSE Mid cap index rose 0.16%, while Small cap index was down by 0.11%.

The top gaining sectoral indices on the BSE were Bankex up by 0.83%, Capital Goods up by 0.73%, Metal up by 0.65%, Basic Materials up by 0.60% and Telecom up by 0.50%, while Energy down by 0.90%, Oil & Gas down by 0.59%, IT down by 0.35%, FMCG down by 0.17% and Realty down by 0.10% were the top losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 2.32%, HDFC Bank up by 1.57%, Eternal up by 1.24%, Ultratech Cement up by 0.97% and Tata Steel up by 0.95%. On the flip side, Reliance Industries down by 2.01%, HCL Technologies down by 0.73%, TCS down by 0.69%, Asian Paints down by 0.42% and Infosys down by 0.38% were the top losers.

Meanwhile, Union Commerce and Industry Minister Piyush Goyal has said that India remains a key destination for overseas investments and is likely to attract $100 billion in foreign direct investments (FDIs) from the four-nation European bloc EFTA. The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland. Goyal also emphasised the need to stay competitive. Earlier, he said the free trade agreement between India and the EFTA will be implemented from October 1. The two sides signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024.

He said ‘My calculation, or my gut sense, is that $100 billion FDI, along with Indian promoter equity, when they come into your companies, it will catalyse to at least $500 billion investment in India into brownfield or greenfield’. He said the FDI commitment would also create a million direct jobs in the coming years, and help technology and innovation through Swiss SMEs entering Indian markets.

Citing a game-changing initiative, he said that the Cabinet has sanctioned Rs 1 lakh crore towards an innovation fund to drive R&D in the country. He noted ‘It can be given out to all of you or any company willing to do it in research and development in the form of a grant, in the form of a low-cost loan, interest-free loan, or term loan’. Recognising the key role of MSMEs, he stressed the need for enabling these enterprises with access to global markets, modern technology, and affordable capital. With 2.4 million STEM graduates annually, including 43 per cent women, India is well-positioned to scale up its manufacturing and innovation capabilities.

On the social security pact with the UK, he said India has successfully negotiated a social security agreement with the UK, enabling Indian professionals on short-term UK work visas (up to 3 years) to contribute to their Indian EPF accounts rather than losing 25 per cent of their overseas earnings in UK social security contributions. On the government's Bharat Mart initiative, he said there are plans to replicate a similar model for Indian MSMEs, particularly leveraging Mumbai's strategic and financial advantage, with government support and incentives promised.

The CNX Nifty traded in a range of 25,111.40 and 24,882.30. There were 28 stocks advancing against 20 stocks declining, while 2 stocks remain unchanged on the index.

The top gainers on Nifty were Eternal up by 7.50%, ICICI Bank up by 2.71%, HDFC Bank up by 2.25%, Mahindra & Mahindra up by 1.69% and HDFC Life Insurance Company up by 1.68%. On the flip side, Reliance Industries down by 3.24%, Wipro down by 2.27%, Indusind Bank down by 2.19%, Eicher Motors down by 1.17% and HCL Technologies down by 1.16% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 8.04 points or 0.09% to 8,984.08, France’s CAC fell 41.1 points or 0.53% to 7,781.57 and Germany’s DAX lost 60.83 points or 0.25% to 24,228.68.