Key gauges end lower for 2nd straight session

Indian equity benchmarks declined sharply for the second straight session on Friday, tracking deep losses in Healthcare, Telecom and Metal stocks amid trade-related concerns and widespread selling pressure in global markets. Besides, persistent selling by foreign investors added to the gloom.

Some of the important factors in today’s trade: 

Consistent FII outflows: Foreign investors continued their significant selling trend on Thursday, offloading Indian equities worth Rs 5,588.91 crore on a net basis, according to exchange data. 

Bank credit growth to industry slows to 5.5% in June: The Reserve Bank of India (RBI) in its latest data has showed 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. 

India's manufacturing sector growth hits 16-month high: India's manufacturing sector growth strengthened in July to a 16-month high of 59.1, supported by faster increases in new orders and output amid favourable demand conditions. 

Fiscal deficit at 17.9% of full-year target at end of June: The Controller General of Accounts (CGA) data has indicated that the central government’s fiscal deficit stood at 17.9 per cent of the full-year target at the end of June. In previous financial year, the fiscal deficit was reported at 8.4 per cent of Budget Estimates (BE) of 2024-25.

Weak global cues: European markets were trading lower 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 settled mostly down as higher U.S. tariffs kicked in and a private survey showed China's manufacturing activity returned to contractionary territory in July as a result of softening new business growth. 

Finally, the BSE Sensex fell 585.67 points or 0.72% to 80,599.91 and the CNX Nifty was down by 203.00 points or 0.82% to 24,565.35.  

The BSE Sensex touched high and low of 81,317.51 and 80,495.57 respectively. There were 6 stocks advancing against 24 stocks declining on the index. 

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

The lone 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 top losing indices on BSE.

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 4.49%, Tata Steel down by 3.04%, Maruti Suzuki down by 2.65%, Tata Motors down by 2.60% and Infosys down by 2.52% were the top losers.

Meanwhile, India's manufacturing sector continued to strengthen in the month of July, aided by faster increases in new orders, output and stocks of purchases. According to the survey report, 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.

The report noted that overall sales rose at the fastest pace in close to five years. Subsequently, production growth strengthened to a 15-month high in July and outpaced the series trend. This acceleration was confined to the intermediate goods segment as rates of increase slowed elsewhere. Although rising international demand from across the globe contributed to the overall upturn in total sales, new export orders increased to a lesser extent than in June. The expansion was nevertheless among the best seen in over 14 years.

Cost pressures intensified, though remained negligible by historical standards, while the latest increase in selling prices was stronger than the long-run series average. Companies continued to hire extra staff at the start of the second fiscal quarter, but they did so to the least extent in eight months. Indeed, outstanding business volumes increased only marginally in July. Further, Indian manufacturers remained confident of a rise in output over the course of the coming 12 months, but the overall level of positive sentiment fell to its lowest mark in three years.

The CNX Nifty traded in a range of 24,784.15 and 24,535.05. There were 11 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were Trent up by 3.21%, Eicher Motors up by 2.21%, Asian Paints up by 1.58%, Hindustan Unilever up by 1.30% and Nestle up by 1.20%. On the flip side, Sun Pharma down by 4.54%, Dr. Reddy's Lab down by 3.85%, Adani Enterprises down by 3.67%, Cipla down by 3.19% and Tata Steel down by 3.13% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 62.41 points or 0.68 to 9,070.40, France’s CAC fell 175.07 points or 2.25 to 7,596.90 and Germany’s DAX lost 451.87 points or 1.88 to 23,613.60.