Sensex, Nifty trade lower; India’s Manufacturing PMI Flash data eyed

Indian equity benchmarks made a positive start on Thursday following the broadly positive cues from Wall Street overnight as well as firm trade in Asian counterparts, amid easing concerns about a global tariff war after US President Donald Trump confirmed major trade deals with Japan and the Philippines, which spurred expectations of further trade agreements as the August 1 deadline nears. But soon markets slipped below neutral lines and are trading lower in early deals led by selling in IT, TECK and Bankex counters. Investors remained on sidelines ahead of the release of India’s Manufacturing PMI Flash for July later in the day and the Nifty F&O weekly expiry. Some cautiousness came as a paper by RBI staffers release indicated that a 10 per cent increase in global crude oil prices can raise the domestic headline inflation by 0.20 per cent. meanwhile, traders are keeping close eye on the Prime Minister Narendra Modi’s visit to the UK for free-trade agreement. The deal is expected to lower tariffs on goods like automobiles, textiles, and whisky, and boost market access for businesses.

The BSE Sensex is currently trading at 82503.86, down by 222.78 points or 0.27% after trading in a range of 82498.07 and 82784.24. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.21%, while Small cap index was up by 0.08%.

The top gaining sectoral indices on the BSE were Healthcare up by 0.55%, Auto up by 0.43%, Metal up by 0.31%, Basic Materials up by 0.27% and Consumer discretionary up by 0.25%, while IT down by 1.00%, TECK down by 0.63%, Bankex down by 0.45%, Energy down by 0.33% and Power down by 0.24% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 2.04%, Eternal up by 1.87%, Tata Steel up by 0.68%, Bharti Airtel up by 0.63% and Power Grid up by 0.37%. On the flip side, Trent down by 2.31%, Kotak Mahindra Bank down by 1.14%, Bajaj Finance down by 0.90%, Infosys down by 0.83% and Tech Mahindra down by 0.81% were the top losers.

Meanwhile, the Federation of Indian Export Organisations (FIEO) has said that the proposed trade pact between India and the UK is likely to benefit labour-intensive sectors such as textiles, leather, gems and jewellery, pharmaceuticals, marine and engineering goods. The agreement will be signed on July 24, during Prime Minister Narendra Modi's visit to the UK. It is expected to help double bilateral trade by 2030 to $120 billion.

The exporters' body also said that the agreement is likely to eliminate tariffs on Indian garments and textiles, enhancing their competitiveness in the UK market. It will also strengthen exports in high-value sectors like gems and jewellery and pharmaceuticals.

It further said improved market access and reduced tariffs will further benefit Indian leather and footwear, auto components, spices, tea, and processed foods, and added that the FTA is also expected to streamline regulatory approvals for Indian pharmaceutical products in the UK. FIEO President S C Ralhan said it could ease mobility and open up new opportunities for Indian IT, business services and professional services firms.

The CNX Nifty is currently trading at 25168.25, down by 51.65 points or 0.20% after trading in a range of 25166.80 and 25246.25. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 1.99%, Eternal up by 1.77%, Dr. Reddy's Lab up by 1.30%, Tata Consumer Products up by 1.17% and JIO Financial Services up by 1.10%. On the flip side, Trent down by 2.18%, Hero MotoCorp down by 1.23%, Kotak Mahindra Bank down by 1.06%, Infosys down by 0.89% and Tech Mahindra down by 0.79% were the top losers.

All Asian markets are trading higher; Nikkei 225 surged 660.68 points or 1.6% to 41,832.00, Hang Seng advanced 150.8 points or 0.59% to 25,688.87, Jakarta Composite rose 87.26 points or 1.17% to 7,556.49, Taiwan Weighted strengthened 75.74 points or 0.32% to 23,394.41, Straits Times gained 30.72 points or 0.73% to 4,262.00, Shanghai Composite added 17.14 points or 0.48% to 3,599.44 and KOSPI was up by 6.11 points or 0.19% to 3,189.88.