Bourses continue to trade in red in early afternoon session

Indian markets continued to trade in red in early afternoon session as traders avoided to take risk ahead of Industrial Production data, which scheduled to be released later in a day and Fed interest rate decision on July 30. Investors overlooked Commerce and Industry Minister Piyush Goyal’s statement that talks with the US on the proposed trade agreement are progressing fast, adding that negotiations for a free trade agreement with Oman are almost finalised. Minister noted that unlike the previous UPA government, the Narendra Modi government has inked FTAs with developed nations like Mauritius, UAE, Australia, EFTA (European Free Trade Area) and the UK.  On the global front, Asian markets were trading mostly in green after US stocks rose to more records as they closed out another winning week. 

The BSE Sensex is currently trading at 81248.84, down by 214.25 points or 0.26% after trading in a range of 81093.51 and 81557.41. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.16%, while Small cap index was down by 0.66%.

The top gaining sectoral indices on the BSE were Utilities up by 0.69%, FMCG up by 0.23%, Oil & Gas up by 0.23%, Power up by 0.22% and Energy was up by 0.20%, while Realty down by 2.69%, Capital Goods down by 1.18%, Industrials down by 1.05%, TECK down by 0.91% and Telecom was down by 0.82% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 1.07%, ICICI Bank up by 0.91%, Trent up by 0.83%, Power Grid up by 0.82% and Bajaj Finserv up by 0.81%. On the flip side, Kotak Mahindra Bank down by 6.81%, Bharat Electronics down by 2.32%, Bharti Airtel down by 1.89%, Titan Company down by 1.73% and Bajaj Finance down by 0.94% were the top losers.

Meanwhile, chemicals exporters body CHEMEXCIL (Basic Chemicals, Cosmetics and Dyes Export Promotion Council) has said that the free trade agreement (FTA) between India and the UK will help boost the country's chemical exports and domestic manufacturing as a number of product categories from the segment will enjoy duty-free access in Britain. It said that under the trade agreement, more than 1,000 tariff lines (or product categories) from the chemicals sectors are granted zero-duty access to the UK market.

CHEMEXCIL Chairman Satish Wagh said that this includes key product categories such as organic chemicals, agrochemicals, cosmetics toiletries, essential oil, speciality chemicals, and petrochemicals. He noted that with a 12.4 per cent contribution to the total trade agreement tariff lines, the chemical sector is among the largest beneficiaries of this agreement, strengthening its position in trade policy and classification. India's current chemical exports to the UK stand at $570.32 million, accounting for about 2 per cent of India's global chemical exports. 

However, he said the agreement sets the stage for exponential growth. A surge of 30-40 per cent in exports is expected, potentially reaching $650-750 million in 2025-26. This growth will be driven by tariff elimination, improved competitiveness, and easier market entry for Indian exporters. He said while India exports close to $30 billion worth of chemicals globally, and the UK imports chemicals worth $35.11 billion, India's current share in the UK's import basket is only $570 million. This highlights a significant untapped potential. 

He further said the FTA will enable Indian exporters to penetrate deeper into the UK market, with reduced cost barriers and enhanced visibility, and added that it will promotes supply chain collaboration, enable technology transfer and joint ventures and enhance regulatory cooperation for smoother trade flows. The pact will offer new opportunities to expand market reach, boost exports, and deepen bilateral trade relations with a high-potential market like the United Kingdom.  

The CNX Nifty is currently trading at 24786.35, down by 50.65 points or 0.20% after trading in a range of 24732.70 and 24889.20. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Shriram Finance up by 2.72%, Cipla up by 1.85%, Hero MotoCorp up by 1.37%, Grasim Industries up by 1.20% and Tata Consumer up by 1.16%. On the flip side, Kotak Mahindra Bank down by 6.82%, Wipro down by 3.03%, Bharat Electronics down by 2.33%, Bharti Airtel down by 1.89% and Titan Company down by 1.81% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 154.65 points or 0.61% to 25,543.00, Jakarta Composite gained 114.8 points or 1.52% to 7,658.30, Taiwan Weighted added 48.6 points or 0.21% to 23,412.98, KOSPI increased 13.47 points or 0.42% to 3,209.52 and Shanghai Composite was up by 4.28 points or 0.12% to 3,597.94. On the flip side, Straits Times fell 10.56 points or 0.25% to 4,250.50 and Nikkei 225 was down by 403.23 points or 0.98% to 41,053.00.