Domestic indices trade slightly in red in late morning deals

Domestic equity indices were trading slightly in red in late morning deals on account of selling in Kotak Mahindra Bank, Bharti Airtel, Mahindra & Mahindra, Bharat Electronics and TCS companies’ stocks. Sentiments were subdued as the Reserve Bank of India’s data showed that India's forex reserves dipped by $1.18 billion to $695.49 billion for the week ending July 18. Traders took note of report that economic think tank GTRI said India must proceed with caution in its trade talks with the US, drawing lessons from countries like Vietnam and Japan. On the BSE sectoral front, traders were seen pilling up positions in Utilities, FMCG, Energy, Oil & Gas and Power, while selling was witnessed in Realty, TECK, Bankex, IT and Metal. 

On the global front, Asian markets were trading mixed as investors awaited more details of the trade talks between the U.S. and China, which are set to kick off in Stockholm later in the day. Back home, in the stock specific development, TCS dropped as the company said it would lay off 2 percent of its workforce - over 12,000 employees - through the fiscal year 2026. 

The BSE Sensex is currently trading at 81332.78, down by 130.31 points or 0.16% after trading in a range of 81093.51 and 81557.41. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.21%, while Small cap index down by 0.19%.

The top gaining sectoral indices on the BSE were Utilities up by 0.82%, FMCG up by 0.54%, Energy up by 0.54%, Oil & Gas up by 0.50% and Power up by 0.48%, while Realty down by 1.96%, TECK down by 0.87%, Bankex down by 0.69%, IT down by 0.57% and Metal down by 0.55% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 1.19%, Hindustan Unilever up by 1.16%, ICICI Bank up by 1.01%, Power Grid up by 0.93% and Trent up by 0.80%. On the flip side, Kotak Mahindra Bank down by 6.12%, Bharti Airtel down by 1.60%, Mahindra & Mahindra down by 1.22%, Bharat Electronics down by 1.21% and TCS down by 1.01% were the top losers.

Meanwhile, the Labour Ministry has indicated that the employment-linked incentive scheme, PM Viksit Bharat Rozgar Yojana, will come into effect from August 01, 2025. The scheme aims to incentivise the creation of more than 3.5 crore jobs over two years, with an outlay of Rs 99,446 crore. Out of 3.5 crore, 1.92 crore beneficiaries will be first timers, entering the workforce. The benefits of the scheme would be applicable to jobs created between August 01, 2025, and July 31, 2027. The scheme will incentivize employers to create new employment, providing benefits for new job creation in various sectors with special focus on the manufacturing sector. It plays a crucial role in country’s strategy to accelerate economic growth through employment-led development.

The scheme consists of two parts, with part A focused on first timers and part B focused on employers. Part A will target first-time employees who are registered with EPFO and offer one-month EPF wage up to Rs 15,000 in two installments. The employees with salaries up to Rs 1 lakh will be eligible for the scheme. The first installment will be payable after 6 months of service and the second installment will be payable after 12 months of service and completion of a financial literacy programme by the employee. A portion of the incentive will be kept in a savings instrument or deposit account for a fixed period to encourage the habit of saving and beneficiaries can withdraw the savings at a later date. 

The part B of the scheme will provide incentives to the employers in respect of employees with salaries up to Rs 1 lakh. The employers will receive incentives worth up to Rs 3000 per month, for two years, for each additional employee with sustained employment for at least six months. Moreover, the incentives for the manufacturing sector will be extended to the third and fourth year. Under the scheme, the establishments registered with EPFO will be required to hire at least two additional employees (for employers with less than 50 employees) or five additional employees (for employers with 50 or more employees), on a sustained basis for at least six months. All payments to the first-time employees under part A of the scheme will be made through DBT (Direct Benefit Transfer) mode using the Aadhar Bridge Payment System (ABPS). Payments to the employers under part B will be made directly into their PAN-linked Accounts.

The CNX Nifty is currently trading at 24814.45, down by 22.55 points or 0.09% after trading in a range of 24732.70 and 24889.20. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Shriram Finance up by 2.57%, Cipla up by 1.85%, Tata Consumer up by 1.28%, JIO Financial up by 1.19% and Grasim Industries up by 1.16%. On the flip side, Kotak Mahindra Bank down by 6.10%, Wipro down by 3.20%, Bharti Airtel down by 1.58%, Bharat Electronics down by 1.23% and Indusind Bank down by 1.16% were the top losers.

Asian markets were trading mixed; Hang Seng advanced 71.65 points or 0.28% to 25,460.00, Jakarta Composite gained 102.9 points or 1.35% to 7,646.40, KOSPI increased 7.14 points or 0.22% to 3,203.19 and Taiwan Weighted added 102.14 points or 0.44% to 23,466.52. However, Shanghai Composite weakened 0.87 points or 0.02% to 3,592.79, Straits Times fell 11 points or 0.26% to 4,250.06 and Nikkei 225 slipped 372.23 points or 0.9% to 41,084.00.