Markets trade below neutral lines

Indian equity benchmarks have entered into negative terrain in late trade. Investors remained cautious amid lingering uncertainty surrounding US’ tariff and trade negotiations. Further, foreign funds outflows by foreign institutional investors (FII) kept the risk appetite subdued. FIIs were net sellers on yesterday’s trade, offloading equities worth Rs 1,202.65 crore. Besides, traders seemed reluctant to make any significant move ahead of release of India’s CPI data for July. Meanwhile, outperforming its peers, small cap stocks managed to garner some gain as reflected by BSE Small cap index surging 0.11%.

On the global front, Asian equity markets were trading mostly in green as the U.S. extended its pause on higher tariffs for Chinese goods until November 10, averting an immediate escalation in the trade war. European equity markets were trading mostly in green ahead of release of US inflation data.

The BSE Sensex is currently trading at 80361.54, down by 242.54 points or 0.30% after trading in a range of 80353.29 and 80997.67. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.04%, while Small cap index was up by 0.11%.

The top gaining sectoral indices on the BSE were Auto up by 0.66%, Healthcare up by 0.62%, Oil & Gas up by 0.54%, IT up by 0.53% and Utilities up by 0.51%, while Bankex down by 0.72%, Realty down by 0.55%, Capital Goods down by 0.47%, FMCG down by 0.30% and Consumer Durables down by 0.28% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.23%, Maruti Suzuki up by 1.76%, Mahindra & Mahindra up by 1.73%, NTPC up by 1.34% and Tata Steel up by 1.04%. On the flip side, Bajaj Finance down by 2.51%, Hindustan Unilever down by 1.21%, HDFC Bank down by 1.05%, Trent down by 0.97% and ICICI Bank down by 0.93% were the top losers.

Meanwhile, the Directorate General of Foreign Trade (DGFT) has said that India banned imports of certain jute products and ropes from Bangladesh through all land routes with immediate effect, amid strained relations between the two countries. However, it said these imports are allowed through the Nhava Sheva Seaport. The products included in the list are bleached and unbleached woven fabrics of Jute or of other textile bast fibre; twine, cordage, rope of jute; and sacks and bags of jute.

Earlier on June 27, India prohibited imports of a number of jute products and woven fabrics from Bangladesh through all land routes. Those imports are, however, allowed only through Nhava Sheva seaport in Maharashtra. The curbs were imposed on items such as jute products, flax tow and waste, jute and other bast fibres, jute, single flax yarn, single yarn of jute, multiple folded, woven fabrics or flex, and unbleached woven fabrics of jute. In April and May also, India had announced similar curbs on imports from Bangladesh.

On May 17, India imposed port restrictions on the import of certain goods like ready-made garments and processed food items, from the neighbouring country. On April 9, India withdrew the transhipment facility it had granted to Bangladesh for exporting various items to the Middle East, Europe and various other countries except Nepal and Bhutan. These measures were announced against the backdrop of the controversial statements made by the head of Bangladesh's interim government Muhammad Yunus in China. Bangladesh is a big competitor of India in the textile sector. The India-Bangladesh trade stood at $12.9 billion in 2023-24. In 2024-25, India's exports stood at $11.46 billion, while imports were $2 billion.

The CNX Nifty is currently trading at 24531.05, down by 54.00 points or 0.22% after trading in a range of 24516.40 and 24702.60. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 2.15%, Hero MotoCorp up by 1.90%, Maruti Suzuki up by 1.83%, Mahindra & Mahindra up by 1.66% and NTPC up by 1.41%. On the flip side, Bajaj Finance down by 2.62%, Hindustan Unilever down by 1.20%, HDFC Bank down by 1.05%, Eternal down by 1.02% and Nestle down by 1.01% were the top losers.

Asian equity markets were trading mostly in green; Nikkei 225 surged 939.52 points or 2.2% to 42,760.00, Hang Seng advanced 38.19 points or 0.15% to 24,945.00, Taiwan Weighted added 22.86 points or 0.09% to 24,158.36, Shanghai Composite strengthened 18.37 points or 0.5% to 3,665.92 and Jakarta Composite gained 184.26 points or 2.37% to 7,790.19, while Straits Times fell 7.11 points or 0.17% to 4,225.67 and KOSPI dropped 16.86 points or 0.53% to 3,189.91.

European equity markets were trading mostly in green; UK’s FTSE 100 increased 30.09 points or 0.33% to 9,159.80 and France’s CAC rose 28.98 points or 0.38% to 7,727.50, while Germany’s DAX lost 25.64 points or 0.11% to 24,055.70.