Post Session: Quick Review

Indian equity benchmarks recovered from early losses and ended marginally higher on Monday, supported by strong buying in IT stocks. Markets opened sharply lower amid renewed geopolitical tensions in the Middle East following a fresh round of U.S. military strikes on Iran. However, sentiments improved in the afternoon session as sustained foreign institutional inflows helped markets to erase their losses. 

Some of the important factors in trade:

India, New Zealand elevate ties to strategic partnership, adopt roadmap to 2030: Traders were optimistic, as India and New Zealand elevated their bilateral relationship to a 'Strategic Partnership' and adopted the 'India-New Zealand Strategic Partnership: Roadmap to 2030', setting out an ambitious framework to deepen cooperation across trade, agriculture, security, innovation and people-to-people ties over the next four years.

India, Canada conclude third round of talks on proposed trade pact: Sentiments remained upbeat as report that India and Canada have concluded the third round of negotiations for the proposed Comprehensive Economic Partnership Agreement (CEPA) in Ottawa on July 10.

India needs to strengthen certification, standards, logistics, buyer networks to fully leverage India-UK FTA: Traders took note of the Global Trade Research Initiative (GTRI) has said that the India's free trade agreement (FTA) with the UK offers significant market access, but translating those opportunities into higher exports will require improvements in standards, certification, logistics and stronger buyer connections.   

On the global front: European markets were trading mostly higher, as investors shrugged off escalating geopolitical tensions and shifted focus to the earnings season. Asian markets closed mostly in green, tracking the broadly positive cues from Wall Street on Friday.

The BSE Sensex ended at 77616.40, up by 47.01 points or 0.06% after trading in a range of 76857.43 and 77789.29. There were 13 stocks advancing against 17 stocks declining on the index. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 3.49%, TECK up by 1.77%, Consumer Durables up by 0.59%, Utilities up by 0.35%, and Auto up by 0.31%, while Telecom down by 0.96%, FMCG down by 0.82%, Capital Goods down by 0.82%, Metal down by 0.69% and Basic Materials down by 0.65% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were TCS up by 5.46%, HCL Technologies up by 5.36%, Infosys up by 3.23%, Tech Mahindra up by 3.06% and NTPC up by 2.00%. On the flip side, Tata Steel down by 2.04%, Eternal down by 1.61%, Ultratech Cement down by 1.38%, Interglobe Aviation down by 1.30% and Maruti Suzuki India down by 1.11% were the top losers. (Provisional)

Meanwhile, the government and Industry stakeholders have held discussions on achieving the $150 billion electronics exports target by 2030. Discussions took place during a Chintan Shivir attended by senior representatives from the Centre, state governments, industry and Export Promotion Councils to discuss opportunities and challenges facing the country's electronics sector. Commerce Secretary Rajesh Agrawal said that the global electronics industry is increasingly driven by global value chains, and India's policy framework must provide the predictability and stability required for these value chains to expand their presence in the country.

Agrawal observed that manufacturing for the domestic market requires a different policy approach than export-oriented production. According to him, the Chintan Shivir had been convened to facilitate constructive discussions and develop tangible, balanced and actionable policy recommendations that are equitable for all stakeholders.

Besides, participants emphasised the importance of integrating MSMEs into global value chains, which account for nearly 90 per cent of global electronics trade, to enable them to scale as suppliers to large manufacturers. Discussions also focused on harmonisation of HS Codes and closer coordination with Customs authorities to minimise product misclassification and facilitate smoother exports.

The CNX Nifty ended at 24211.00, up by 4.10 points or 0.02% after trading in a range of 24000.20 and 24259.80. There were 20 stocks advancing against 30 stocks declining on the index. (Provisional)

The top gainers on Nifty were TCS up by 5.44%, HCL Technologies up by 5.15%, Tech Mahindra up by 3.24%, Infosys up by 3.10% and Bajaj Auto up by 2.22%. On the flip side, Grasim Industries down by 2.45%, Tata Steel down by 2.10%, Nestle India down by 1.87%, Eternal down by 1.61% and Interglobe Aviation down by 1.55% were the top losers. (Provisional)

European markets were trading higher; Germany’s DAX gained 89.31 points or 0.36% to 25,156.40, France’s CAC rose 11.53 points or 0.14% to 8,350.50 and UK’s FTSE 100 increased 2.21 points or 0.02% to 10,499.50.

Asian markets ended mixed on Monday amid renewed tensions over escalating US-Iran conflicts and threats to close the vital Strait of Hormuz. Iran announced the closure of the waterway ‘until further notice’- a claim US military and maritime authorities rejected. South Korea's Kospi led the regional losses, plunged almost 9% and triggered a market-wide circuit breaker after the sell-off erased $328 billion in market value, driven by heavy liquidations of AI and semiconductor heavyweights like Samsung Electronics and SK Hynix. Moreover, Japan’s Nikkei tumbled as rising crude oil prices clouded the outlook for corporate earnings growth. Meanwhile, market participants were cautious ahead of key inflation and GDP data releases from the US and China, as well as Federal Reserve Chair Kevin Warsh's first congressional testimony due this week. Investors were also watching the upcoming Bank of Korea (BOK) policy decision due on Thursday, with the central bank widely expected to lift its base rate to 2.75%.