Key gauges remain in red in morning deals

Indian equity benchmarks remained in red in morning deals, amid profit-taking in blue-chip stocks and continuous foreign fund outflows. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,209.11 crore on Wednesday, according to exchange data. Traders took a note of the Global Trade Research Initiative (GTRI) stated that the US-Indonesia trade pact reflects how Washington's pressure tactics can compel countries to cut tariffs, commit to large purchases, and loosen regulatory control, and India should tread cautiously in ongoing trade talks to avoid similar concessions. However, losses remain capped as traders took support with the latest HSBC Flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, showed India's private sector showed robust growth in July, primarily fuelled by strong manufacturing performance and international demand. The index recorded a score of 60.7 in July. While slightly down from June's 61.0, it remained firmly above the 50-mark, indicating continuous expansion for the fourth consecutive year. On the global front, Asian markets are trading higher as signs the US may pursue further trade deals following its pact with Japan injected fresh momentum into stock markets.

The BSE Sensex is currently trading at 82558.54, down by 168.10 points or 0.20% after trading in a range of 82456.37 and 82784.24. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.32%, while Small cap index was up by 0.02%.

The top gaining sectoral indices on the BSE were Healthcare up by 0.61%, Auto up by 0.55%, Consumer Disc up by 0.29%, Telecom up by 0.29% and Metal up by 0.23%, while IT down by 1.36%, TECK down by 0.75%, Realty down by 0.60%, Power down by 0.43% and Banking down by 0.40% were the losing indices on BSE.

The top gainers on the Sensex were Eternal up by 2.48%, Tata Motors up by 2.27%, Bharti Airtel up by 1.28%, Tata Steel up by 0.61% and Mahindra & Mahindra up by 0.28%. On the flip side, Trent down by 2.91%, Tech Mahindra down by 1.56%, Infosys down by 1.04%, Kotak Mahindra Bank down by 0.94% and Axis Bank down by 0.86% were the top losers.

Meanwhile, an article on ‘State of the Economy’ in the Reserve Bank of India's (RBI) July Bulletin has said that India’s economic activities held up during June-July amidst geopolitical tensions and tariff policy uncertainties. It said the global macroeconomic environment remained fluid in June and July so far amidst geopolitical tensions and tariff policy uncertainties. 

Moreover, it stated domestic economic activity held up, with improving kharif agricultural season prospects, continuation of strong momentum in the services sector and modest growth in industrial activity. It noted that headline retail inflation remained below 4 per cent for the fifth consecutive month in June driven by deflation in food prices.

Also, system liquidity remained in surplus to facilitate a faster transmission of policy rate cuts to the credit markets. It added the external sector remained resilient, backed by ample foreign exchange reserves and a moderate external debt-to-GDP ratio. The central bank, however, said the views expressed in the Bulletin article are of the authors and do not represent the views of the Reserve Bank of India.

The CNX Nifty is currently trading at 25180.20, down by 39.70 points or 0.16% after trading in a range of 25154.40 and 25246.25. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Eternal up by 2.58%, Dr. Reddy's Lab up by 2.49%, Tata Motors up by 2.33%, Tata Consumer Product up by 1.49% and Apollo Hospital up by 1.43%. On the flip side, Trent down by 2.97%, Shriram Finance down by 2.82%, Tech Mahindra down by 1.51%, Hero MotoCorp down by 1.25% and Infosys down by 1.07% were the top losers.

Asian markets are trading higher; Nikkei 225 surged 683.11 points or 1.63% to 41,854.43, Taiwan Weighted added 33.2 points or 0.14% to 23,351.87, Hang Seng advanced 150.8 points or 0.59% to 25,688.87, KOSPI increased 6.79 points or 0.21% to 3,190.56, Straits Times rose 30.76 points or 0.72% to 4,262.04, Jakarta Composite gained 83.65 points or 1.11% to 7,552.88 and Shanghai Composite strengthened 17.14 points or 0.48% to 3,599.44.