Key gauges end lower for 2nd straight day

Indian equity benchmarks declined for the second day in a row on Friday, with the Sensex tumbling 721 points due to heavy selling in Utilities, Power and Oil & Gas shares amid persistent foreign fund outflows. Investor sentiment remained fragile amid ongoing uncertainty over U.S.-India tariff negotiations. 

Some of the important factors in today’s trade:

Rupee falls against US dollar: Indian rupee declined against the US dollar, tracking negative domestic equity markets and surging global crude oil prices. A strengthening American currency overseas and foreign fund outflows further weighed on the local unit. 

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

Signing of India-UK FTA marks breakthrough for Indian engineering exports: 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.

India offers one of most attractive investment ecosystems in maritime domain: Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal has said that India, as a maritime nation, is undergoing a transformative shift backed by strong policy support and growing investment momentum.

Global front: Asian markets ended mostly lower ahead of a key week featuring U.S. tariff decisions, big tech earnings and central bank meetings. European markets were trading lower amid a few disappointing earnings updates, and some uncertainty about U.S.-EU trade deal ahead of the August 1 deadline.

Finally, the BSE Sensex fell 721.08 points or 0.88% to 81,463.09 and the CNX Nifty was down by 225.10 points or 0.90% to 24,837.00.  

The BSE Sensex touched high and low of 82,069.51 and 81,397.69 respectively. There were 2 stocks advancing against 28 stocks declining on the index.

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

The lone 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.

The top gainers on the Sensex were Sun Pharma up by 0.52% and Bharti Airtel up by 0.05%. On the flip side, Bajaj Finance down by 4.73%, Power Grid Corporation down by 2.61%, Infosys down by 2.44%, Tech Mahindra down by 2.44% and Bajaj Finserv down by 2.29% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that the India-UK Free Trade Agreement (FTA) is truly a game changer in trade, investment and services sectors. He said it was ‘remarkable’ that a journey which started over two decades ago culminated with a historic prime ministerial visit and in a very ‘fair, equitable and balanced agreement’ that ensures the possibility to double India-UK trade to $120 billion in the next five years. He noted that ‘Our farmers will get a lot of opportunities, because we can process those farm products and market them in the UK. Our MSME sector will get a plethora of opportunities in aircraft parts and auto components, various engineering products. Our textiles will see a massive spurt in demand, because now on a competitive basis, we will be right on top with zero duties’.

He said whether it's leather, footwear, toys, furniture, pharma products, a very wide range of India's own strengths, which we are currently exporting in big measure across the world, will find markets in the United Kingdom. He also highlighted the Double Contribution Convention (DCC), which has been agreed to be enforced alongside the FTA. He explained ‘Our people who come and serve in UK for short term, two years or three years, who today land up losing almost 25 per cent of their earnings in Social Security, which never gives them any benefit, will now have an opportunity under the DCC to pay this money into their provident fund account in India, and that money will be secure. That money will be giving them an over 8 per cent tax-free return and will become their pension and Social Security in the long run’.

He noted that though the parliamentary ratification process in the UK will take some time, the signing process gives businesses certainty for the long run due to bipartisan support in Britain for the agreement. He said ‘The UK parliamentary process will take a few months. The good part is that it has always had bipartisan support. It was largely negotiated when the Conservatives were in power, and today, with the Labor government, it has culminated into a robust and very fair and balanced agreement, and therefore, I think this will get cleared pretty quickly’.

The CNX Nifty traded in a range of 25,010.35 and 24,806.35. There were 7 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were Cipla up by 3.17%, SBI Life Insurance up by 2.07%, Apollo Hospital up by 1.50%, Dr. Reddy's Lab up by 0.91% and Sun Pharma up by 0.59%. On the flip side, Bajaj Finance down by 4.81%, Shriram Finance down by 3.64%, Indusind Bank down by 2.64%, Bajaj Auto down by 2.58% and Tech Mahindra down by 2.53% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 34.55 points or 0.38% to 9,103.82, France’s CAC fell 3.08 points or 0.04% to 7,815.20 and Germany’s DAX lost 162.73 points or 0.67% to 24,133.20.