Indices trade with small gains in early trade; breadth strong

The domestic equity indices traded near the flatline with positive points in early trade, supported by strong foreign institutional investor (FII) inflows and global optimism. Benchmark indices edged higher as crude oil prices declined and the US Federal Reserve signaled a softer policy outlook. The positive momentum continued despite lingering global risks and concerns over upcoming tariff deadlines.

The Nifty traded above the 25,550 mark. PSU Bank, metal and consumer durables shares advanced while private bank, realty and bank shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, rose 36.97 points or 0.04% to 83,792.13. The Nifty 50 index added 17 points or 0.7% to 25,584.15.

In the broader market, the S&P BSE Mid-Cap index rose 0.40% and the S&P BSE Small-Cap index added 0.42%.

The market breadth was strong. On the BSE, 2,000 shares rose and 774 shares fell. A total of 143 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, added 1.42% to 12.77.

Foreign portfolio investors (FPIs) bought shares worth 12,594.38 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 195.23 crore in the Indian equity market on 26 June 2025, provisional data showed.

Stocks in Spotlight:

Torrent Pharmaceuticals added 2.68% after the company has issued commercial papers (CPs) amounting to Rs 300 crore at an interest rate of 5.93% p.a for a tenure of 92 days.

Western Carriers (India) jumped 3.19% after the company has secured a work order worth approximately Rs 230 crore from Jindal Stainless Steel. The contract spans a period of three years and covers an integrated EXIM logistics solution.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.11% to 6.281 from the previous close of 6.274.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.5525 compared with its close of 85.7200 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement fell 1.08% to Rs 96,040.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.05% to 97.34.

The United States 10-year bond yield added 0.14% to 4.258.

In the commodities market, Brent crude for August 2025 settlement rose 33 cents or 0.49% to $68.06 a barrel.

Global Markets:

Asian shares edged higher on Friday, mirroring Wall Street's upbeat mood after White House spokesperson Karoline Leavitt played down the looming tariff deadlines that had been keeping investors on edge.

All eyes are on July 8, when the so-called liberation day tariffs are scheduled to kick in following a 90-day pause. The following day, July 9, marks the cutoff for a potential EU deal that could avert a hefty 50% tariff hike.

In Japan, fresh inflation data from Tokyo offered a mild surprise. Core CPI, which excludes volatile food and fuel prices, rose 3.1% year-on-year in June, cooler than the 3.6% reading in May, hinting at easing price pressures.

Back in the U.S., the S&P 500 closed just shy of a record high, jumping 0.8%. The Nasdaq climbed 0.97%, while the Dow followed closely with a 0.94% gain. Investors shrugged off economic headwinds ranging from tariff spats to sticky inflation and shaky geopolitics.

A temporary calm in the Middle East also helped sentiment. The truce between Israel and Iran, brokered by former President Trump, held firm through Thursday. Trump has indicated fresh talks with Iran are on the cards, potentially aimed at curbing its nuclear ambitions.

The U.S. economy hit a speed bump -- GDP contracted at an annualized rate of 0.5% in Q1, marking the first dip since 2022. At the same time, weekly jobless claims dropped by 10,000, though economists caution the unemployment rate could inch up in June as job seekers face a tighter market.

In tech, NVIDIA continued its meteoric rise, hitting new all-time highs. The stock has surged nearly 40% since April's tariff turbulence sparked a brief sell-off.

Micron Technology also lit up the chip sector, with upbeat Q2 earnings and guidance that sailed past analyst expectations.

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