Domestic indices trade flat in late morning deals

Domestic equity indices traded flat in late morning deals amid mixed cues from other Asian markets. Markets struggled for direction owing to lingering uncertainty over the India-U.S. trade negotiations. US Trade Representative Jamieson Greer said more negotiations will be needed with India on a trade deal just days before an August 1 deadline for higher tariffs. Besides, traders were cautious as India's industrial output growth slowed to a 10-month low at 1.5% in June, pulled down by contraction in mining and electricity sectors.  In the stock specific development, Torrent Pharmaceuticals surged on reporting 20% rise in Q1 consolidated net profit. 

On the global front, Asian markets were trading mixed as investors awaited the outcome of the ongoing U.S.-China trade talks. Back home, on the BSE sectoral front, traders were seen pilling up positions in Realty, Telecom, Basic Materials, Healthcare and Metal, while selling was witnessed in Capital Goods, Consumer Durables, IT, PSU and Bankex. 

The BSE Sensex is currently trading at 80886.89, down by 4.13 points or 0.01% after trading in a range of 80575.45 and 80990.72. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.11%, while Small cap index down by 0.04%.

The top gaining sectoral indices on the BSE were Realty up by 0.90%, Telecom up by 0.59%, Basic Materials up by 0.46%, Healthcare up by 0.38% and Metal up by 0.38%, while Capital Goods down by 0.79%, Consumer Durables down by 0.52%, IT down by 0.42%, PSU down by 0.22% and Bankex down by 0.19% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.15%, Tata Motors up by 0.84%, Larsen & Toubro up by 0.82%, Reliance Industries up by 0.58% and HDFC Bank up by 0.45%. On the flip side, Bharat Electronics down by 1.91%, Bajaj Finserv down by 1.36%, Axis Bank down by 1.18%, Eternal down by 0.96% and TCS down by 0.89% were the top losers.

Meanwhile, with inflation being comfortably below the central bank's median target of 4 per cent, the finance ministry in its monthly review report has suggested that there is room for further easing of interest rate by the Reserve Bank of India (RBI). The report has noted that the retail inflation, based on Consumer Price Index (CPI), has remained below 4 per cent since February and it further declined to more than six-year-low of 2.82 per cent in the month of May. 

Since February 2025, the central bank has cumulatively reduced the short-term benchmark lending rate (repo) by 100 basis points. The RBI has projected headline inflation at 3.4 per cent for the second quarter of the fiscal year, while in the first quarter, actual inflation came below the target of the RBI. The report noted that ‘it appears likely that the full fiscal year inflation rate would undershoot the central bank's expectation of 3.7 per cent’. It further said global crude oil prices are expected to remain subdued as the OPEC plus group has indicated a larger-than-anticipated production hike. The group has indicated production hike of 5,48,000 barrels per day in August, meanwhile, it had increased the production in the previous months.

On the fiscal front, it noted that both the Union and state governments have maintained momentum in capital expenditure while adhering to consolidation goals. It added that despite the tax cuts the revenue sources remain buoyant, continuing on the double-digit growth path. Meanwhile, the government has mandated the RBI to ensure inflation remains at 4 per cent with a margin of 2 per cent on the either side.

The CNX Nifty is currently trading at 24683.65, up by 2.75 points or 0.01% after trading in a range of 24598.60 and 24727.15. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were JIO Financial up by 2.78%, JSW Steel up by 1.67%, Bharti Airtel up by 1.25%, Larsen & Toubro up by 0.81% and Apollo Hospital up by 0.77%. On the flip side, Bharat Electronics down by 1.84%, Axis Bank down by 1.30%, Bajaj Finserv down by 1.21%, Eternal down by 1.12% and TCS down by 0.94% were the top losers.

Asian markets were trading mixed; Hang Seng declined 296.13 points or 1.16% to 25,266.00, Nikkei 225 slipped 383.27 points or 0.93% to 40,615.00, Taiwan Weighted lost 211.46 points or 0.91% to 23,201.52 and Straits Times fell 24.32 points or 0.57% to 4,216.82. However, Jakarta Composite gained 9.49 points or 0.12% to 7,624.26, Shanghai Composite strengthened 2.27 points or 0.06% to 3,600.21 and KOSPI increased 17.97 points or 0.56% to 3,227.49.