Markets continue to trade below neutral lines

Indian equity markets continued to trade below the neutral lines with around half a percent cut as Brent crude oil prices surged past $91 a barrel amid renewed US-Iran tensions. Investors remained cautious after US forces struck Iranian rocket launchers on the Strait of Hormuz. Further, US Federal Reserve Chair Kevin Warsh's comments have raised expectation of interest rate hike in the near term by the Federal Reserve. Besides, rebalancing of MSCI index raised concerns over last minute volatility, keeping traders on edge. Under the rebalancing, MSCI has reduced the weight of Reliance Industries, a market heavy weight. 

On the global front, Asian and European equity markets were trading mixed as renewed Middle East tensions and Fed Chair Kevin Warsh's hawkish Jackson Hole remarks weighed on market risk appetite.

The BSE Sensex is currently trading at 76875.33, down by 389.18 points or 0.50% after trading in a range of 76751.32 and 77177.27. There were 6 stocks advancing against 23 stocks declining on the index.

The alone gaining sectoral indices on the BSE were Telecom up by 0.26% and Auto up by 0.03%, while Metal down by 2.05%, Utilities down by 1.80%, Basic Materials down by 1.38%, Power down by 1.29% and IT down by 1.29% were the top losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 1.25%, Mahindra & Mahindra up by 0.55%, Sun Pharmaceutical Industries up by 0.23%, Maruti Suzuki India up by 0.22% and Reliance Industries up by 0.12%. On the flip side, Adani Ports & SEZ down by 2.75%, Tata Steel down by 2.26%, NTPC down by 2.23%, Infosys down by 1.94% and Eternal down by 1.83% were the top losers.

Meanwhile, Ministry of Commerce & Industry in its latest notification has said that India remains committed to concluding the Comprehensive Economic Partnership Agreement (CEPA) negotiations with Chile within this year, with the aim of delivering a balanced and mutually beneficial framework that provides equitable and commercially meaningful outcomes for businesses on both sides. Commerce Secretary Rajesh Agrawal was there in Santiago, Chile, to advance negotiations on the India-Chile Comprehensive Economic Partnership Agreement.

India reiterated its commitment to openness, sustained engagement and a balanced approach in strengthening the India-Chile economic partnership, with a focus on creating meaningful opportunities for businesses and people in both countries. The shared identity of India and Chile as members of the Global South, along with their common strategic vision, provides a strong foundation for deepening bilateral economic cooperation and advancing shared prosperity.

Further, the Commerce Secretary highlighted the immense potential for enhanced economic cooperation in sectors including healthcare, pharmaceuticals, energy, minerals, agriculture, machinery and engineering. The successful conclusion of the CEPA negotiations would provide further momentum to the growing bilateral trade and economic partnership between the two countries. The CEPA is expected to open new avenues for greater trade and investment, while fostering cooperation in technology, talent and resilient supply chains, thereby creating stronger foundations for long-term economic cooperation between India and Chile.

The CNX Nifty is currently trading at 24044.65, down by 131.00 points or 0.54% after trading in a range of 23993.60 and 24128.70. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were ICICI Bank up by 1.76%, Bajaj Auto up by 0.65%, Grasim Industries up by 0.61%, Maruti Suzuki India up by 0.41% and Mahindra & Mahindra up by 0.36%. On the flip side, Adani Enterprises down by 4.92%, Adani Ports & SEZ down by 2.83%, Tata Steel down by 2.51%, Bajaj Finance down by 1.88% and NTPC down by 1.83% were the top losers.

Asian equity markets were trading mixed; Straits Times rose 35.06 points or 0.61% to 5,734.99, Shanghai Composite strengthened 34.12 points or 0.86% to 3,986.30 and KOSPI increased 31.14 points or 0.46% to 6,820.02, while Nikkei 225 slipped 232.56 points or 0.35% to 66,173.00, Taiwan Weighted lost 202.98 points or 0.44% to 46,128.47, Hang Seng declined 69.79 points or 0.27% to 25,515.00 and Jakarta Composite plunged 5.63 points or 0.09% to 6,512.49.

European equity markets were trading mixed; France’s CAC rose 8.82 points or 0.1% to 8,410.00, while Germany’s DAX lost 145.99 points or 0.55% to 26,424.00. Meanwhile, UK market remained closed on account of Summer Bank Holiday.