Post Session: Quick Review

Indian equity benchmarks ended extended their losses for second straight session on Friday, with both the Nifty and Sensex closing nearly 1% lower, dragged down by selling in heavyweight stocks. Markets made a negative start and remained under pressure throughout the day, as traders stayed cautious amid uncertainty surrounding the U.S. trade deal and continued selling by Foreign Institutional Investors.

Some of the important factors in today’s trade:

FIIs continue to exit Indian markets: Persistent foreign fund outflows dented domestic sentiments. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,133.69 crore on Thursday, according to exchange data.

India-UK FTA truly game changer in trade: Traders overlooked Commerce and Industry Minister Piyush Goyal’s statement that the India-UK Free Trade Agreement (FTA) is truly a game changer in trade, investment and services sectors.

Govt to come up with norms for 27% ethanol blending in petrol: Traders took note of Union Minister Nitin Gadkari has said that the government will come up with norms for 27 per cent ethanol blending in petrol by the end of August.  

Global front: European markets were trading mostly in red, as investors waited for the latest updates on EU-U.S. trade talks ahead of the August 1 deadline. Asian markets ended mostly in red, as US President Donald Trump has now reworded his threat stating that imports into the US could face tariffs ranging from 15 to 50 per cent for countries that fail to sign a suitable deal past the August 1 deadline. 

The BSE Sensex ended at 81463.09, down by 721.08 points or 0.88% after trading in a range of 81397.69 and 82069.51. There was one stock advancing against 29 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 1.46%, while Small cap index down by 1.88%. (Provisional)

The only gaining sectoral index on the BSE was Healthcare up by 0.20%, while Utilities down by 2.37%, Power down by 2.36%, Oil & Gas down by 2.11%, PSU down by 2.03% and Industrials down by 1.88% were the top losing indices on BSE. (Provisional)

The only gainer on the Sensex was Sun Pharma up by 0.52%. On the flip side, Bajaj Finance down by 4.78%, Power Grid down by 2.61%, Tech Mahindra down by 2.56%, Bajaj Finserv down by 2.26% and Infosys down by 2.22% were the top losers. (Provisional)

Meanwhile, the Engineering Export Promotion Council of India (EEPC India) has said that the signing of the India-UK Free Trade Agreement (FTA) marks a breakthrough for Indian engineering exports and is poised to significantly deepen bilateral economic ties.

Terming it as a ‘landmark achievement’, EEPC India noted that the FTA’s removal of tariffs--previously as high as 18 per cent on key engineering items--will unlock substantial opportunities for Indian manufacturers, particularly in high-growth sectors such as electrical machinery, auto components, industrial equipment, and construction machinery. India’s engineering exports to the UK, its sixth-largest destination, stood at $4.28 billion in FY25, accounting for just 2.2 per cent of the UK’s total engineering imports. The trade pact is expected to nearly double this figure to over $7.5 billion by 2029-30. The organisation believes this comprehensive trade pact with a major developed economy could serve as a template for future FTAs with other trading blocs and nations, supporting India’s broader goal of reaching $250 billion in engineering exports by 2030.

Meanwhile, aided by higher shipments of iron and steel, internal combustion engines, and two- and three-wheelers, India’s engineering goods exports returned to growth in June 2025, rising 1.35 per cent year-on-year to $9.5 billion. Cumulative exports in April-June (Q1 FY26) stood at $28.91 billion, up from $27.89 billion in the same period last year.

The CNX Nifty ended at 24837.00, down by 225.10 points or 0.90% after trading in a range of 24806.35 and 25010.35. There were 7 stocks advancing against 43 stocks declining on the index. (Provisional)

The top gainers on Nifty were Cipla up by 3.00%, SBI Life Insurance up by 2.38%, Apollo Hospital up by 1.43%, Dr. Reddy's up by 0.98% and HDFC Life Insurance up by 0.67%. On the flip side, Bajaj Finance down by 4.71%, Shriram Finance down by 3.58%, Indusind Bank down by 2.85%, Bajaj Auto down by 2.57% and Tech Mahindra down by 2.53% were the top losers. (Provisional)

European markets were trading mostly in red; Germany’s DAX lost 137.73 points or 0.57% to 24,158.20 and UK’s FTSE 100 decreased 28.45 points or 0.31% to 9,109.92, while France’s CAC rose 7.02 points or 0.09% to 7,825.30.

Asian markets ended mostly lower on Friday as global investors' focus is now on the US tariff decisions, big tech earnings and interest rate decisions from both the Bank of Japan and the US Federal Reserve. Both Fed and BoJ meetings are expected to hold interest rates steady. Chinese and Hong Kong shares fell ahead of the third round of the US-China trade negotiations, and as the EU-China summit yielded few concrete changes. Japanese shares declined even as Tokyo’s soft CPI inflation data complicated the Bank of Japan's interest-rate hike prospects.