Indian markets trade sluggish in early noon deals

Indian equity benchmarks traded sluggish during early afternoon deals, with Nifty slipping more than a per cent, following the introduction of a new auction mechanism for shares having futures and options (F&O) contracts. Investors also tracked the latest developments in the U.S.-Iran conflict and looked forward to the upcoming RBI's monetary policy decision for directional cues. Further, the government has increased the windfall tax on exports of petrol, diesel, and aviation turbine fuel (ATF) for the fortnight starting August 3, 2026. The rate of special additional excise duty (SAED) on export of diesel will be Rs 25.5 per litre, up from Rs 15.5 per litre. SAED on export of ATF will be Rs 22 per litre, as against Rs 14.5 per litre earlier. Duty on petrol exports has been raised to Rs 3.5 per litre, from Rs 2.5 per litre levied on July 16. 

On the global front, Asian markets were trading mostly in green, despite the survey results from S&P Global showed that the headline RatingDog China General Manufacturing Purchasing Managers' Index posted a four-month low score of 50.9 in July, down from 51.7 in June.

The BSE Sensex is currently trading at 78389.72, down by 249.31 points or 0.32% after trading in a range of 78380.07 and 79143.15. There were 19 stocks advancing against 11 stocks declining on the index.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.99%, Industrials up by 0.67%, Metal up by 0.41%, Power up by 0.41% and Consumer Disc up by 0.31%, while IT down by 0.57%, Energy down by 0.47%, TECK down by 0.40%, Oil & Gas down by 0.36% and Bankex down by 0.33% were the top losing indices on BSE.

The top gainers on the Sensex were Trent up by 1.49%, Asian Paints up by 1.39%, Mahindra & Mahindra up by 1.02%, Bharat Electronics up by 0.82% and Tata Steel up by 0.79%. On the flip side, HDFC Bank down by 1.42%, Hindustan Unilever down by 1.05%, Infosys down by 0.91%, Reliance Industries down by 0.88% and Interglobe Aviation down by 0.59% were the top losers.

Meanwhile, with an aim to strengthen Ministry of Micro, Small and Medium Enterprises (MSME) environment in India, Rajya Sabha has passed a bill that seeks to tackle the issue of delayed payments to MSMEs by prescribing timelines to ensure faster adjudication of disputes, provide recovery of the settlement agreement, and address their liquidity issues. Highlighting advantages of the proposed legislation for the sector and various sections of society, Union Minister for MSME Jitan Ram Manjhi said that bill seeks to address the current challenges faced by the MSME sector by improving the administrative structure and facilitating payment mechanisms.

Moreover, he reiterated government’s commitment to the development of the MSME sector, and said that the bill aims to balance the interests of all concerned parties while maintaining constitutional principles and the interests of businesses. Further, the proposed legislation seeks to provide recovery of the mediated settlement agreement or the arbitral award as arrear of land revenue. The bill also proposes to decriminalise offences regarding contravention of certain provisions, replacing conviction-based fines with graded penalties by including a warning at the first instance. Besides, it provides for notifying a national digital platform for free and voluntary registration of micro, small and medium enterprises.

Underscoring the importance of MSME sector, the minister described the sector as the backbone of the economy, which contributes significantly to the country's manufacturing and exports. He added that MSMEs contribute 31% to India's GDP, 36% to the country's manufacturing and 41% to its exports. He also highlighted the steadily rising credit flow to MSMEs saying outstanding credit disbursed to MSMEs, which stood at Rs 10 lakh crore in 2014-15, has increased to over Rs 38.35 lakh crore this year.

The CNX Nifty is currently trading at 24493.35, down by 280.95 points or 1.13% after trading in a range of 24488.10 and 24703.90. There were 7 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were Trent up by 0.93%, Hindalco Industries up by 0.66%, Apollo Hospital Ent. up by 0.46%, Larsen & Toubro up by 0.32% and Nestle India up by 0.20%. On the flip side, Grasim Industries down by 3.59%, HDFC Life Insurance down by 3.45%, SBI Life Insurance down by 2.61%, Bajaj Auto down by 2.26% and Hindustan Unilever down by 2.19% were the top losers.

Asian markets were trading mostly in green; Jakarta Composite gained 26.98 points or 0.43% to 6,261.48, KOSPI increased 101.50 points or 1.6% to 6,358.95, Nikkei 225 surged 225.1 points or 0.35% to 63,980.00, Straits Times rose 4.6 points or 0.08% to 5,616.88 and Shanghai Composite strengthened 12.62 points or 0.33% to 3,822.28, while Taiwan Weighted lost 25.75 points or 0.06% to 43,360.66 and Hang Seng declined 118.4 points or 0.46% to 25,891.00.