Markets trim opening gains to trade flat in early deals

Indian equity benchmarks made a positive start on Tuesday after key Wall Street benchmarks hit record highs overnight. But soon markets trimmed their gains and are trading flat with positive bias in early deals due to prevailing tariff uncertainty. India and the U.S. have agreed on a wide range of tariff lines, but the negotiations are stuck over sensitive sectors such as agriculture and automobiles. As per a private report, a U.S. team led by U.S. Trade Representative for South and Central Asia Brendan Lynch is likely to visit India in mid-August to continue negotiations for a trade agreement. Traders were cautious with the government data which showed that India's eight core infrastructure sectors' growth slowed down to 1.7 per cent in June 2025 from 5 per cent in the same month last year.

On the global front, Asian markets are trading mixed amid continued uncertainty over U.S. President Donald Trump's reciprocal tariffs on imports from trading partners, though he set a deadline of August 1 to reach deals. Reports suggest that EU leaders are preparing for a showdown over U.S. tariff threats.

The BSE Sensex is currently trading at 82285.13, up by 84.79 points or 0.10% after trading in a range of 82257.25 and 82538.17. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.31%, while Small cap index was up by 0.13%.

The top gaining sectoral indices on the BSE were Consumer Discretionary up by 0.42%, Basic Materials up by 0.16%, Bankex up by 0.04% and Metal up by 0.01%, while Realty down by 1.05%, Auto down by 0.61%, Healthcare down by 0.59%, Telecom down by 0.46% and Power down by 0.32% were the top losing indices on BSE.

The top gainers on the Sensex were Eternal up by 9.96%, ICICI Bank up by 0.74%, Bharat Electronics up by 0.60%, Titan Company up by 0.57% and Trent up by 0.46%. On the flip side, Bajaj Finserv down by 1.36%, Tata Motors down by 1.32%, Mahindra & Mahindra down by 1.04%, Sun Pharma down by 0.98% and Bajaj Finance down by 0.71% were the top losers.

Meanwhile, expressing an optimism over India’s economic growth prospects, Minister of State for Finance Pankaj Chaudhary said that the government has been taking a multi-pronged approach to sustain economic growth amid trade tensions, uncertain capital flows, and geopolitical risks. He said ‘The estimate of fiscal deficit for the year 2025-26, as presented in the Union Budget 2025-26, is at 4.4 per cent. There is no requirement felt for revision of fiscal deficit target at this stage, and neither is it considered appropriate’.

He said India's economic resilience is underpinned by strong macroeconomic fundamentals such as steady growth, price stability, credible fiscal consolidation, resilient external sector performance, robust foreign exchange reserves, a strong and well-capitalised banking sector, and robust physical and digital infrastructure. Additionally, he said, India's well-regulated financial system, credible inflation-targeting regime, and flexible exchange rate contribute to the economy's resilience to shocks.

Spelling out some of the steps taken to propel growth, he said liberalisation of FDI, bilateral engagement with countries for the finalisation of various trade agreements, credit guarantee schemes, and increased public expenditures, particularly capex. In the Union Budget 2025-26, an outlay of Rs 1.5 lakh crore has been proposed in this regard. 

To strengthen power sector resilience, he said the Budget also proposed incentives for electricity distribution reforms and augmentation of intra-state transmission capacity, with an additional borrowing of 0.5 per cent of gross state domestic product (GSDP) allowed for states, contingent on undertaking these reforms. Moreover, the Budget also proposed to launch a comprehensive multi-sectoral 'Rural Prosperity and Resilience' programme in partnership with states, which aims to address under-employment in agriculture.

The CNX Nifty is currently trading at 25109.20, up by 18.50 points or 0.07% after trading in a range of 25089.40 and 25182.00. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Eternal up by 10.20%, Bharat Electronics up by 0.79%, ICICI Bank up by 0.78%, Titan Company up by 0.77% and Trent up by 0.63%. On the flip side, Bajaj Finserv down by 1.36%, Shriram Finance down by 1.21%, Tata Motors down by 1.14%, Sun Pharma down by 1.02% and Cipla down by 0.96% were the top losers.

Asian markets are trading mixed; Taiwan Weighted lost 236.51 points or 1.02% to 23,104.05, Nikkei 225 slipped 145.39 points or 0.37% to 39,673.72, KOSPI dropped 37.91 points or 1.19% to 3,172.90 and Straits Times fell 9.39 points or 0.22% to 4,197.74. On the other hand, Hang Seng rose 45.72 points or 0.18% to 25,039.86, Jakarta Composite gained 16.68 points or 0.22% to 7,414.87 and Shanghai Composite was up by 8.99 points or 0.25% to 3,568.78