Post Session: Quick Review

Indian equity benchmarks ended with significant losses on Thursday, with both the Nifty and Sensex closing over half a percent cut. Investors’ sentiments remained subdued due to the weekly F&O expiry. Despite strong June quarter earnings from Infosys, markets failed to gain momentum. After making a slightly positive start, indices quickly turned negative and remained in the red throughout the session. Uncertainty surrounding the India-US trade deal and persistent foreign fund outflows further weighed on investors’ sentiments.

Some of the important factors in today’s trade:

India’s net FDI plunges 98% to $35 million in May: Traders were cautious as the Reserve Bank of India’s latest monthly bulletin stated that net foreign direct investment (FDI) into India fell 98% year-on-year to $35 million in May 2025 amid higher repatriation by overseas investors and a fall in gross inflows.

A 10% rise in crude prices can lead to 0.20% rise in domestic inflation: 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.

Trade pact between the US and Indonesia raises concerns in India: Sentiments remined downbeat as Think tank GTRI said 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. 

Global front: European markets were trading in green, as investors digested a slew of earnings and awaited the European Central Bank's interest-rate decision later in the day. Asian markets ended mostly in green, after Japan's private sector logged a steady growth in July as stronger growth in the service sector was offset by a fall in manufacturing output. 

The BSE Sensex ended currently trading at 82184.17, down by 542.47 points or 0.66% after trading in a range of 82047.22 and 82784.24. There were 5 stocks advancing against 25 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.43%, while Small cap index down by 0.50%. (Provisional)

The few gaining sectoral indices on the BSE were Healthcare up by 0.52%, Metal up by 0.10% and Auto up by 0.03%, while IT down by 1.84%, TECK down by 1.48%, FMCG down by 1.08%, Realty down by 1.05% and Energy down by 0.90% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Eternal up by 3.41%, Tata Motors up by 1.56%, Sun Pharma Industries up by 0.61%, Tata Steel up by 0.43% and Titan Company up by 0.23%. On the flip side, Trent down by 3.95%, Tech Mahindra down by 3.36%, Bajaj Finserv down by 1.59%, Reliance Industries down by 1.48% and Infosys down by 1.31% were the top losers. (Provisional)

Meanwhile, India’s flash PMI data showed that operating conditions across India's private sector continued to improve in the month of July. Indian manufacturers led the way, recording faster rates of expansion than services for all of the three metrics i.e. total sales, export orders and output levels. The HSBC Flash India Manufacturing PMI index rose from 58.4 in June to 59.2 in July, its highest reading in close to 17-and-a-half years and indicative of a robust improvement in the health of the manufacturing industry. However, the HSBC Flash India Composite Output Index -- a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors -- eased slightly to 60.7 in July from a final reading of 61.0 in June. The figure still remained well above the 50-level that separates growth from contraction and marked sustained expansion for the past four years. 

On the price front, there was a pick-up in cost pressures across the private sector. Aluminium, cotton, foodstuffs (cooking oil, egg, meat, vegetables), rubber, steel and transportation all rose in price. The rate of inflation was solid, but remained below its long-run average. Services companies recorded a faster increase in input prices than their manufacturing counterparts. Charge inflation likewise intensified in July, as private sector companies sought to share additional cost burdens with their clients by lifting selling prices. Moreover, the pace of increase surpassed the series trend, with stronger rates of inflation seen in both the manufacturing and service sectors.

The data report noted that although Indian firms continued to forecast output growth over the course of the coming 12 months, the overall level of positive sentiment fell to its lowest mark since March 2023. Dampening sentiment were concerns around price pressures and heightened competition for new work. Subsequently, job creation eased in July. Employment rose at a moderate pace that was the weakest in 15 months. A notable slowdown in growth was seen in the service economy, where the respective seasonally adjusted index fell by nearly four points. This moderation in job creation, coupled with robust intakes of new business, added to firms' capacity constraints. Outstanding business volumes across the private sector rose at a solid rate that was the fastest in nearly five years. Pressures were more intense in the service economy than in the manufacturing industry.

The CNX Nifty ended at 25062.10, down by 157.80 points or 0.63% after trading in a range of 25018.70 and 25246.25. There were 14 stocks advancing against 35 stocks declining on the index, while one stock remained unchanged. (Provisional)

The top gainers on Nifty were Eternal up by 3.67%, Tata Motors up by 1.51%, Dr. Reddy's Lab up by 1.45%, Grasim Industries up by 0.99% and Cipla up by 0.98%. On the flip side, Nestle down by 5.32%, Trent down by 3.83%, Shriram Finance down by 3.13%, Tech Mahindra down by 3.10% and Reliance Industries down by 1.52% were the top losers. (Provisional)

European markets were trading higher; Germany’s DAX gained 255.88 points or 1.04% to 24,496.70, UK’s FTSE 100 increased 63.77 points or 0.7% to 9,125.26 and France’s CAC rose 26.97 points or 0.34% to 7,877.40.

Asian markets settled higher on Thursday tracking Wall Streets’ gains overnight following US President Donald Trump’s announcement of trade deals with Japan and the Philippines, which sparked optimism for similar agreements with other major economies as the August 1 deadline nears. Market sentiments improved further after a private report said that the European Union and United States are closing in on a trade deal that would impose 15% tariffs on European imports. Chinese and Hong Kong shares gained on signs of better US-China trade ties and fresh government support. Moreover, Seoul shares gained after data showed South Korea's economy expanded at a 0.6% annual rate in the last quarter, above expectations driven by robust private consumption and exports.