Indices trade sideways in early trade; breadth strong

The headline equity benchmarks traded sideways in early trade, weighed by a mix of global and domestic factors. The recent Israel-Iran truce helped ease geopolitical tensions, while growing optimism over a potential US-India trade deal lifted sentiment. Inflows from foreign institutional investors further supported the bullish mood. Even concerns around the July 9 U.S. tariff deadline took a backseat, as reports of a likely extension helped calm investor nerves.

The Nifty traded above the 25,600 level. PSU bank, oil & gas and healthcare shares advanced while auto, private bank and financial services shares declined.

At 09:28 IST, the barometer index, the S&P BSE Sensex, shed 25.74 points or 0.03% to 84,042.11. The Nifty 50 index added 7.05 points or 0.03% to 25,644.85.

In the broader market, the S&P BSE Mid-Cap index rose 0.38% and the S&P BSE Small-Cap index jumped 0.73%.

The market breadth was strong. On the BSE, 2,214 shares rose and 806 shares fell. A total of 163 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 3.43% to 12.81.

Foreign portfolio investors (FPIs) bought shares worth 1,397.02 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 588.93 crore in the Indian equity market on 27 June 2025, provisional data showed.

Economy:

India's forex reserves dropped by USD 1.01 billion to USD 697.93 billion for the week ended June 20, the Reserve Bank of India said on Friday.

For the week ended June 20, foreign currency assets, a major component of the reserves, dropped by USD 357 million to USD 589.06 billion, the data released on Friday showed.

The gold reserves were down by USD 573 million to USD 85.74 billion during the week, the RBI said.

The Special Drawing Rights (SDRs) declined by USD 85 million to USD 18.672 billion, the apex bank said.

India's reserve position with the IMF also declined by USD 1 million to USD 4.45 billion in the reporting week, the apex bank data showed.

Stocks in Spotlight:

Karnataka Bank dropped 4.19% to Rs 199 after the company's managing director (MD) and chief executive officer (CEO), Srikrishnan Hari Hara Sarma has resigned with effect from 15 July 2025. The board has also appointed Raghavendra Srinivas Bhat as the chief operating officer (COO) with effect from 2 July 2025.

Torrent Pharmaceuticals added 1.06% after the company informed that it will acquire JB Chemicals from KKR in two phased at equity valuation of Rs 25,689 crore.

Waaree Energies advanced 2.65% after the company announced that its wholly owned subsidiary, Waaree Solar Americas received an order for supply 540 MW modules from a renowned customer who is a developer of utility scale solar and energy storage projects across United States.

Numbers to Track:

The yield on India's 10-year benchmark federal paper fell 0.18% to 6.310 from the previous close of 6.322.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.4700 compared with its close of 85.5050 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement rose 0.01% to Rs 95,480.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.18% to 96.85.

The United States 10-year bond yield added 0.68% to 4.287.

In the commodities market, Brent crude for August 2025 settlement lost 18 cents or 0.27% to $66.62 a barrel.

Global Markets:

US Dow Jones futures surged over 247 points, signaling a strong start for Wall Street after last week's upbeat finish.

Asian shares traded higher, riding a wave of optimism despite mixed economic signals. Investors were closely watching fresh data from across the region, including industrial output numbers from South Korea and Japan, and China's latest PMI readings.

In China, manufacturing activity contracted for the third straight month in June. The official manufacturing PMI inched up to 49.7 from May's 49.5, still below the 50-mark that separates growth from contraction. Meanwhile, the non-manufacturing PMI, which captures activity in services and construction, ticked up to 50.5 from 50.3. With the economy continuing to lose steam, hopes are building for fresh stimulus measures from Beijing.

Back in the US, Friday was a blockbuster session for equities. The S&P 500 closed at its highest level in over four months, gaining about 0.5%. The Nasdaq Composite also reached an all-time high, closing at a record after adding about 0.5%, while the Dow Jones Industrial Average rose nearly 1%. All three indices have made a solid comeback this month after April's slump, which was triggered by escalating trade tensions.

Adding a political twist to the mix, the US Senate on Saturday narrowly voted 51-49 to begin debate on President Trump's sweeping One Big Beautiful Bill. This legislation rolls together tax cuts, spending shifts, and border security measures. While the bill still faces a turbulent legislative journey, the vote kicks off up to 20 hours of debate. However, the Congressional Budget Office estimates it could swell the federal deficit by a staggering $3.3 trillion over the next ten years.

Powered by Capital Market - Live News