Markets trade higher in early deals on Monday

Indian equity markets have made positive start and are trading higher with gains of over quarter a percent in early deals on Monday on account of buying by funds and retail investors. Meanwhile, broader indices were also trading in green with BSE Small cap index and Mid cap index gaining in the range of 0.35-0.45 percent. Sentiments were upbeat as India’s Gross GST collection increased 7.5 per cent Y-O-Y to about Rs 1.96 lakh crore in July 2025 on higher domestic revenues and taxes from imports. Further, some support also came in as The RBI data stated that India's forex reserves rose by $2.70 billion to $698.19 billion during the week ended July 25, 2025.

On the global front, Asian markets were trading mixed amid concerns about the economic impact of US President Donald Trump's unilateral reciprocal tariffs and aggressive trade stance on the global economy. Back home, on the BSE sectoral front, traders were seen pilling up positions in Auto, Metal, Basic Materials, Consumer Durables and Realty, while selling was witnessed in IT, TECK, Power and Utilities.

The BSE Sensex is currently trading at 80842.64, up by 242.73 points or 0.30% after trading in a range of 80586.12 and 80902.93. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.44%, while Small cap index up by 0.37%.

The top gaining sectoral indices on the BSE were Auto up by 1.34%, Metal up by 1.31%, Basic Materials up by 1.16%, Consumer Durables up by 0.85% and Realty up by 0.84%, while IT down by 0.37%, TECK down by 0.21%, Power down by 0.11% and Utilities down by 0.10% were the losing top indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.19%, Bharat Electronics up by 1.68%, Mahindra & Mahindra up by 1.53%, Asian Paints up by 1.21% and Adani Ports up by 1.10%. On the flip side, Infosys down by 0.57%, Tech Mahindra down by 0.52%, Power Grid down by 0.39%, HCL Technologies down by 0.35% and Sun Pharma down by 0.14% were the top losers.

Meanwhile, the rating agency CareEdge in a pre-monetary policy review meeting has said that the Reserve Bank of India (RBI) has already frontloaded the rate cuts, anticipating the moderation in inflation, and it is unlikely the central bank would go for further rate cuts unless economic growth concerns aggravate. 

It said while the US reciprocal tariff rate (25 per cent for India) and proposed penalty are concerning, the RBI may opt to wait till ‘we get further clarity on this front’. The next bi-monthly RBI monetary policy review meeting is scheduled for August 4-6, 2025. 

The upcoming monetary policy meeting in August takes place against the backdrop of a notable moderation in headline inflation in recent months, largely driven by easing food prices. Inflation is projected to average below the 4 per cent target over the next two quarters, supported by a favourable base and muted food inflation.

CareEdge noted the global trade policy uncertainty will continue to cast a shadow on India's growth outlook; however, the overall impact is likely to be limited given India's limited merchandise trade exposure to the US economy.

The CNX Nifty is currently trading at 24656.55, up by 91.20 points or 0.37% after trading in a range of 24562.85 and 24669.95. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Hero MotoCorp up by 2.46%, Tata Steel up by 2.14%, Eicher Motors up by 1.89%, Bharat Electronics up by 1.74% and Indusind Bank up by 1.74%. On the flip side, Power Grid down by 0.93%, Tech Mahindra down by 0.87%, Infosys down by 0.55%, HCL Technologies down by 0.40% and Tata Consumer down by 0.39% were the top losers.

Asian markets were trading mixed; Hang Seng advanced 59.19 points or 0.24 to 24,567.00, Straits Times rose 28.88 points or 0.69 to 4,182.71, Shanghai Composite strengthened 7.07 points or 0.2 to 3,567.02 and KOSPI increased 31.62 points or 1 to 3,151.03. However, Nikkei 225 slipped 509.6 points or 1.26 to 40,290.00, Taiwan Weighted lost 118.57 points or 0.51 to 23,315.81 and Jakarta Composite plunged 15.34 points or 0.2 to 7,522.43