Key gauges trade flat with negative bias in morning deals

Indian equity benchmarks were trading flat with negative bias in morning deals, as traders awaited the Reserve Bank of India's (RBI's) Monetary Policy Committee decision, which will be announced on Wednesday. Traders remained cautious as exchange data showed Foreign Institutional Investors offloaded equities worth Rs 2,831.59 crore on Monday. Some concern also came as Asian Development Bank (ADB) stated that despite a strong 7.8 per cent growth in the first quarter, the Indian economy is expected to grow at 6.5 per cent in the current financial year as the impact of US tariffs on Indian exports will reduce prospects, particularly in the second half. It said the reduction in exports will impact India's GDP in both FY26 and FY27 as the tariffs are implemented. As a result, net exports will subtract from growth more than previously forecast in April. On the global front, Asian markets are trading mixed as markets weighed prospects for a US government shutdown that would delay closely watched jobs figures. 

The BSE Sensex is currently trading at 80300.12, down by 64.82 points or 0.08% after trading in a range of 80279.19 and 80677.82. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.01%, while Small cap index was up by 0.11%.

The top gaining sectoral indices on the BSE were Metal up by 1.12%, PSU up by 0.64%, Basic Materials up by 0.64%, IT up by 0.44% and TECK up by 0.17%, while Consumer Durables down by 0.68%, Realty down by 0.52%, FMCG down by 0.48%, Industrials down by 0.29% and Consumer Discretionary down by 0.25% were the top losing indices on BSE.

The top gainers on the Sensex were Bharat Electronics up by 1.14%, Power Grid Corporation up by 0.94%, Adani Ports &SEZ up by 0.93%, Ultratech Cement up by 0.84% and HCL Technologies up by 0.65%. On the flip side, ITC down by 0.95%, Larsen & Toubro down by 0.91%, Reliance Industries down by 0.58%, Tata Motors down by 0.50% and Mahindra & Mahindra down by 0.44% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that India is negotiating free trade agreements (FTAs) with a number of countries including the US, New Zealand, Oman, Peru, Chile, and the European Union. He said that Qatar and Bahrain too are keen to negotiate trade pacts with India. He stated, in August, India and the Eurasian Economic Union (EAEU) comprising Armenia, Belarus, Kazakhstan, Kyrgyz Republic and Russia signed Terms of Reference (ToR) to launch negotiations on an FTA.

Earlier, the minister led an official delegation to New York for trade talks. After that meeting, India and the US decided to continue negotiations for early conclusion of a mutually beneficial bilateral trade agreement. Both sides held constructive meetings on various aspects of the trade deal. During the visit, the minister held meetings with United States Trade Representative (USTR) Jamieson Greer and US Ambassador-designate to India Sergio Gor.

These deliberations were important as they took place after the US imposed a 25 per cent reciprocal tariff and an additional 25 per cent penalty on Indian goods entering the American market for purchasing Russian crude oil. At present, total 50 per cent additional import duty is imposed on Indian goods.

The CNX Nifty is currently trading at 24626.05, down by 8.85 points or 0.04% after trading in a range of 24618.95 and 24731.80. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were JSW Steel up by 2.08%, Hindalco up by 1.36%, Bharat Electronics up by 1.16%, Adani Ports &SEZ up by 1.00% and Ultratech Cement up by 0.99%. On the flip side, Interglobe Aviation down by 1.45%, ITC down by 1.07%, Larsen & Toubro down by 0.91%, Tata Motors down by 0.55% and Mahindra & Mahindra down by 0.51% were the top losers.

Asian markets are trading mixed; Nikkei 225 surged 11.25 points or 0.02% to 45,055.00, Taiwan Weighted added 348.86 points or 1.36% to 25,929.18, Shanghai Composite strengthened 18.51 points or 0.48% to 3,881.04 and Straits Times rose 14.71 points or 0.34% to 4,284.69.

On the flip side, Jakarta Composite plunged 25.43 points or 0.31% to 8,097.82, KOSPI dropped 2.32 points or 0.07% to 3,428.89 and Hang Seng declined 20.88 points or 0.08% to 26,602.00.