Post Session: Quick Review

Indian equity benchmarks extended their losses for the second consecutive day on Friday, as traders adopted a cautious stance following US President Donald Trump announced tariffs on various trading-partner countries, effective August 7. After making a cautious start, soon indices traded near neutral lines, as sentiments remained downbeat amid sustained foreign fund outflows. In last leg of trade, indices slipped into deep red and closed with significant losses.

Some of the important factors in today’s trade:

Bank credit growth to industry slows to 5.5% in June: Some concern came with the Reserve Bank of India (RBI) data showing that the bank credit growth to industry slowed to 5.5 per cent in the fortnight ended June 26, 2025 as compared to 7.7 per cent in the year-ago period. 

Fiscal deficit at 17.9% of full-year target at end of June: Traders took note of the Controller General of Accounts (CGA) data, which showed that the Centre's fiscal deficit stood at 17.9 per cent of the full-year target at the end of June. 

India's manufacturing sector strengthens further in July with PMI at 59.1: Market participants overlooked report that the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) surged to 59.1 in July from 58.4 in June, signaling the strongest improvement in the health of the sector since March 2024.  

Global front: European markets were trading in red as investors assessed the potential economic impact of fresh U.S. levies on dozens of countries, including a 39 percent rate on Switzerland. Asian markets ended mostly in red, as private survey showed China's manufacturing activity returned to contractionary territory in July as a result of softening new business growth.

The BSE Sensex ended at 80599.91, down by 585.67 points or 0.72% after trading in a range of 80495.57 and 81317.51. There were 6 stocks advancing against 24 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 1.37%, while Small cap index down by 1.59%. (Provisional)

The only gaining sectoral index on the BSE was FMCG up by 0.43% while, Healthcare down by 2.44%, Telecom down by 2.41%, Metal down by 1.94%, Oil & Gas down by 1.91% and TECK down by 1.83% were the losing indices on BSE. (Provisional) 

The top gainers on the Sensex were Trent up by 3.24%, Asian Paints up by 1.40%, Hindustan Unilever up by 1.17%, ITC up by 1.14% and Kotak Mahindra Bank up by 0.88%. On the flip side, Sun Pharma down by 4.43%, Tata Steel down by 3.04%, Infosys down by 2.69%, Maruti Suzuki down by 2.67% and Tata Motors down by 2.60% were the top losers. (Provisional)

Meanwhile, with US President Donald Trump terming India and Russia as ‘dead economies’, Commerce and Industry Minister Piyush Goyal has asserted that India is the world's fastest-growing major economy and will soon become the third largest. He added that international institutions and economists see India as the bright spot in the global economy.

He said India is contributing to almost 16 per cent of global growth, added that it is also widely expected that ‘we will become the third largest’ economy in a few years. He said ‘In just over a decade, India has rapidly transformed from being one of the Fragile 5 to the fastest-growing major economy in the world. We have risen from the 11th largest economy to one of the top 5 economies, driven by our reforms, the hard work of our farmers, MSMEs and entrepreneurs’.

He further said that in the last decade, the government has taken transformative measures to promote India as the manufacturing hub of the world. He said India's young, skilled and talented workforce is driving innovation and competitiveness of the Indian industry. He noted ‘Our exports have steadily increased during the last 11 years. In an increasingly protectionist world, India has done mutually beneficial trade agreements with the UAE, UK, Australia and EFTA (European Free Trade Area) countries’. He added ‘We are also committed to similar trade agreements with other countries’.

The CNX Nifty ended at 24565.35, down by 203.00 points or 0.82% after trading in a range of 24535.05 and 24784.15. There were 12 stocks advancing against 38 stocks declining on the index. (Provisional)

The top gainers on Nifty were Trent up by 3.23%, Asian Paints up by 1.46%, Hindustan Unilever up by 1.29%, Nestle up by 1.28% and Hero MotoCorp up by 1.19%. On the flip side, Sun Pharma down by 4.51%, Dr. Reddy's Lab down by 3.91%, Cipla down by 3.33%, Adani Enterprises down by 3.28% and Tata Steel down by 3.12% were the top losers. (Provisional)

European markets were trading lower; France’s CAC fell 150.57 points or 1.98 to 7,621.40, Germany’s DAX lost 386.87 points or 1.63 to 23,678.60 and UK’s FTSE 100 decreased 45.31 points or 0.5 to 9,087.50.

Asian markets settled mostly down on Friday tracking Wall Street’s falls overnight and investor caution after US President Donald Trump modified ‘reciprocal’ tariff rates on several countries, ranging from 10% to 41%. South Korean stocks led losses in the region after the government proposed higher taxes on investors and companies in a bid to shore up revenue. Chinese and Hong Kong shares weakened after a private survey showed China's manufacturing activity returned to contractionary territory in July as a result of softening new business growth. Moreover, Japanese shares declined after mixed earnings from Apple and Amazon and concerns about continued investments by major tech players.