Key indices snap 3-day fall; Nifty closes above 24,800 mark

Indian equity benchmarks bounced back after three-day fall and ended higher by over half percent on Tuesday, powered by a rally in blue-chip stocks Reliance Industries and Larsen & Toubro. All the sectoral indices ended in the green with Realty, Telecom and Energy up over a percent each. However, investors traded cautiously awaiting the outcome of India-US trade talks ahead of the August 1 deadline. 

Some of the important factors in today’s trade:

Digital payments rise 10.7% at end-March 2025: Reserve Bank of India (RBI) data reported that digital payments across the country registered a 10.7 per cent year-on-year rise as on March 2025.

RBI measures to boost MSME credit access: A delegation from industry lobby PHDCCI met RBI Governor Sanjay Malhotra and suggested a set of policy reforms aimed at enhancing credit access, regulatory support, and financial efficiency for India's Micro, Small, and Medium Enterprises (MSMEs).

India-UK CETA transformative opportunity for India’s textiles, leather, footwear industries: Few days after the signing of India-UK Comprehensive Economic and Trade Agreement (CETA), Union Minister of Commerce and Industry, Piyush Goyal has said that the agreement is a transformative opportunity for India’s textiles, leather, and footwear industries. 

Rupee falls against US Dollar: Indian rupee depreciated against the US dollar, weighed down by a jump in the US dollar index and a surge in crude oil prices. Month-end dollar demand from Oil Marketing Companies (OMCs) and importers further pressurised the rupee.

Global front: European markets were trading mostly in green with sentiment underpinned by positive earnings news and eased worries of a trade war. Asian markets ended mostly down on Tuesday as investors looked past the U.S.-EU trade deal and awaited the outcome of ongoing U.S.-China talks in Stockholm. 

Finally, the BSE Sensex rose 446.93 points or 0.55% to 81,337.95 and the CNX Nifty was up by 140.20 points or 0.57% to 24,821.10.  

The BSE Sensex touched high and low of 81,429.88 and 80,575.45 respectively. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.84%, while Small cap index was up by 1.10%.

The top gaining sectoral indices on the BSE were Realty up by 1.64%, Telecom up by 1.50%, Energy up by 1.22%, Industrials up by 1.20% and Healthcare up by 1.15%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Reliance Industries up by 2.21%, Larsen & Toubro up by 2.13%, Asian Paints up by 1.81%, Tata Motors up by 1.48% and Adani Ports &SEZ up by 1.42%. On the flip side, Axis Bank down by 0.73%, TCS down by 0.73%, Titan Company down by 0.41%, ITC down by 0.31% and Ultratech Cement down by 0.28% were the top losers.

Meanwhile, the finance ministry in its monthly economic review has said that Indian economy has the look and feel of ‘steady as she goes’ for the current fiscal, even as it flagged slowing credit growth. It said the first quarter of fiscal 2025-26 (FY26) presents a picture of resilient domestic supply and demand fundamentals. With inflation remaining within the target range and monsoon progress on track, the domestic economy enters the second quarter of FY26 on a relatively firm footing. While geopolitical tensions have not elevated further, the global slowdown, particularly in the US (which shrank by 0.5 per cent in Q1 2025), could dampen further demand for Indian exports.

It also said ‘Continued uncertainty on the US tariff front may weigh on India’s trade performance in the coming quarters. Slow credit growth and private investment appetite may restrict acceleration in economic momentum’. Further, given the deflationary trend in the wholesale price index, one has to observe economic momentum in nominal quantities. Measured in constant prices, economic activity may appear healthier than it is. It said ‘All that said, the economy has the look and feel of ‘steady as she goes’ as far as FY26 is concerned’.

The monthly economic review noted despite monetary easing and a strong bank balance sheet, credit growth has slowed, reflecting cautious borrower sentiment and possibly risk-averse lender behaviour. It said ‘A growing preference for bond markets, particularly commercial papers among corporates due to lower borrowing costs, may also explain the shift’. Piggybacking on initiatives like the Employment Linked Incentive (ELI) scheme, the ministry said it is time for corporates to set the ball in motion. The Reserve Bank has cumulatively reduced the short-term lending rate (repo) by 100 basis points since February.

With an outlay of Rs 99,446 crore, the ELI scheme aims to incentivise the creation of more than 3.5 crore jobs in the country over a period of 2 years, with special focus on the manufacturing sector. It said that despite global headwinds marked by trade tensions, geopolitical volatility, and external uncertainties, India’s macroeconomic fundamentals have remained resilient. The report said high-frequency indicators reflected broad-based strength, registering strong year-on-year growth. While the manufacturing and construction sectors continued to expand, the services sector anchored the overall economic growth in Q1 of FY26.

The CNX Nifty traded in a range of 24,847.15 and 24,598.60. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were JIO Financial Services up by 4.77%, Reliance Industries up by 2.09%, Asian Paints up by 1.97%, Larsen & Toubro up by 1.92% and Eicher Motors up by 1.74%. On the flip side, SBI Life Insurance down by 0.93%, Axis Bank down by 0.80%, TCS down by 0.72%, HDFC Life Insurance down by 0.62% and ITC down by 0.41% were the top losers.

European markets were trading mostly in green; France’s CAC rose 41.22 points or 0.53% to 7,875.80 and Germany’s DAX gained 72.4 points or 0.3% to 24,289.90, while UK’s FTSE 100 decreased 7.56 points or 0.08% to 9,112.75.