Key gauges end lower on Thursday

Indian equity benchmarks traded under pressure on the weekly expiry day and ended over half percent lower on Thursday, 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.  

Some of the important factors in today’s trade:

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

National highways construction pace in India slows to 29 km/day in FY25: Union Road Transport and Highways Minister Nitin Gadkari has said that the pace of national highways (NHs) construction in India slowed to 29 km/day in the last fiscal (FY25). He said the pace of national highways construction stood at 34 km/day during 2023-24. 

India’s economic activities held up amidst geopolitical tensions, tariff policy uncertainties: 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.

India-UK trade pact to boost exports: The Federation of Indian Export Organisations (FIEO) said the proposed trade pact between India and the UK is likely to benefit sectors such as textiles, leather, gems and jewellery, pharmaceuticals, marine and engineering goods. 

Global front: European markets were trading mostly 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 settled higher as companies like Alphabet and SK Hynix posted encouraging earnings and media reports suggested that the EU and U.S. are closing in on a trade deal that would impose 15 percent tariffs on European imports.

Finally, the BSE Sensex fell 542.47 points or 0.66% to 82,184.17 and the CNX Nifty was down by 157.80 points or 0.63% to 25,062.10.  

The BSE Sensex touched high and low of 82,784.24 and 82,047.22 respectively. There were 5 stocks advancing against 24 stocks declining, while 1 stock remained unchanged on the index.

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

The top 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.

The top gainers on the Sensex were Eternal up by 3.44%, Tata Motors up by 1.51%, Sun Pharma up by 0.56%, Tata Steel up by 0.40% and Titan Company up by 0.34%. On the flip side, Trent down by 3.92%, Tech Mahindra down by 3.15%, Reliance Industries down by 1.53%, HCL Technologies down by 1.51% and Bajaj Finserv down by 1.40% 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 traded in a range of 25,246.25 and 25,018.70. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Eternal up by 3.44%, Dr. Reddy's Lab up by 1.72%, Tata Motors up by 1.62%, Tata Consumer Products up by 0.98% and Cipla up by 0.87%. On the flip side, Nestle down by 5.57%, Trent down by 3.94%, Tech Mahindra down by 3.26%, Shriram Finance down by 3.17%, and Reliance Industries down by 1.53% were the top losers. 

European markets were trading mostly in green; UK’s FTSE 100 increased 85.46 points or 0.94% to 9,146.95, Germany’s DAX gained 104.08 points or 0.43% to 24,344.90, while France’s CAC fell 18.83 points or 0.24% to 7,831.60.