Post Session: Quick Review

Indian equity benchmarks ended with minor cut on Thursday. Market made a gap-down opening as traders remained cautious following U.S. President Donald Trump's announcement of a 25% tariff on Indian exports. However, in afternoon session, markets turned positive as traders preferred to buy stocks at lower levels. Finally, markets failed to sustain the gains and closed in negative territory.

Some of the important factors in today’s trade:

US announces 25% tariff plus penalty on India from August 1: Traders were cautious as U.S. President Donald Trump announced plans to impose a 25% tariff on Indian imports from August 1.

FPIs extend selling streak: Sustained selling by foreign portfolio investors (FPIs) dented domestic markets. Foreign institutional investors (FIIs) extended their selling streak for the eighth consecutive session on July 30, offloading equities worth Rs 850 crore. 

Trump's tariff may seem severe, but India not worse-off than nations that signed trade deal: Traders took note of Global Trade Research Initiative’s (GTRI) statement that US President Donald Trump's announcement to impose a 25% tariff and penalty on Indian goods may seem severe but the country is not in a worse position than nations that signed trade deals with Washington. 

Global front: European markets were trading mostly in green as investors digested a slew of earnings and reacted to a flurry of trade and tariff-related announcements from U.S. President Donald Trump on the eve of his Friday deadline. Asian markets ended mostly in red, as Bank of Japan maintained its interest rate on Thursday and lifted its inflation outlook citing the rise in food prices.

The BSE Sensex ended at 81185.58, down by 296.28 points or 0.36% after trading in a range of 80695.15 and 81803.27. There were 8 stocks advancing against 22 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.70%, while Small cap index down by 0.85%. (Provisional)

The only gaining sectoral index on the BSE was FMCG up by 1.15%, while Telecom down by 1.80%, Oil & Gas down by 1.47%, Energy down by 1.40%, Metal down by 1.18% and Healthcare down by 1.07% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Hindustan Unilever up by 3.48%, Eternal up by 1.40%, ITC up by 1.01%, Kotak Mahindra Bank up by 0.92% and Power Grid up by 0.64%. On the flip side, Tata Steel down by 2.20%, Sun Pharma down by 1.96%, Adani Ports and Special Economic Zone down by 1.50%, Reliance Industries down by 1.39% and NTPC down by 1.37% were the top losers. (Provisional)

Meanwhile, the Domestic rating agency ICRA has said affordable housing finance companies' (AHFC) assets under management (AUM) is set to rise to Rs 2.5 lakh crore, from Rs 1.4 lakh crore, in the next three years. It said non-bank lenders' mortgage portfolio is set to touch Rs 20 lakh crore by March 2028, from Rs 13 lakh crore in March 2025.

The agency's co-group head for financial sector ratings, A M Karthik, said the retail mortgage loan growth will be driven by robust demand and the restricted availability of alternative credit options due to ongoing issues with unsecured lending. He stated that the sector has traditionally demonstrated strong performance, marked by low loan losses and healthy business returns.

The housing finance companies (HFCs) accounted for two-thirds of the overall mortgage loans, while affordable HFCs constituted 11 per cent of the overall assets under management. The AHFCs have a higher share of self-employed borrowers and loans against property in their portfolio compared to other large HFCs focused on the prime borrower segments. 

The AHFCs have a sizeable share of smaller ticket loans, and their AUM growth has been quite steep in the recent past, resulting in low portfolio seasoning. Given their business model, AHFCs need an extensive network of branches and staff to manage loan origination and handle collections in case of overdues, Karthik said, recommending sustained stability in operations and prudence in credit policies as desirable for the segment.

The CNX Nifty ended at 24768.35, down by 86.70 points or 0.35% after trading in a range of 24635.00 and 24956.50. There were 13 stocks advancing against 37 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hindustan Unilever up by 3.44%, JIO Financial Services up by 2.79%, Eternal up by 1.43%, ITC up by 1.07% and JSW Steel up by 1.00%. On the flip side, Adani Enterprises down by 4.03%, Tata Steel down by 2.12%, Dr. Reddy's Lab down by 1.69%, Sun Pharma down by 1.56% and Adani Ports and Special Economic Zone down by 1.50% were the top losers. (Provisional)

European markets were trading mostly in green; UK’s FTSE 100 increased 44.61 points or 0.49 to 9,181.55 and Germany’s DAX gained 35.08 points or 0.14 to 24,297.30, while France’s CAC fell 8.56 points or 0.11 to 7,853.40.

Asian markets ended mostly lower on Thursday, weighed down after the US Federal Reserve left interest rates unchanged in a divided vote and Chair Jerome Powell signaled caution on the likelihood of a rate cut in September. Meanwhile, investors were evaluating the United States’ 15% tariffs on imports from South Korea and 25% duties on imports from India, along with an unspecified penalty. Chinese and Hong Kong shares declined after data showed China's factory activity unexpectedly deteriorated in July to a three-month low, while Chinese leaders signaled they would refrain from rolling out more major stimulus for now. However, Japanese shares rallied after the Bank of Japan (BoJ) held its key interest rate steady at 0.5% in a unanimous vote and raised its inflation forecast.