Nifty slides below 25,600; private bank shares under pressure

The domestic equity benchmarks traded with modest losses in morning trade, weighed down by a mix of global and domestic factors. India's recent forex data revealed a decline in its reserves. Meanwhile, the Israel-Iran truce helped ease geopolitical tensions, and growing optimism over a potential US-India trade deal supported sentiment. Inflows from foreign institutional investors further contributed to the positive undertone. 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 below the 25,600 level. Private bank shares witnessed profit booking after advancing in the past two consecutive trading sessions.

At 10:28 IST, the barometer index, the S&P BSE Sensex, declined 284.60 points or 0.33% to 83,778.85. The Nifty 50 index lost 82.05 points or 0.32% to 25,556.75.

In the broader market, the S&P BSE Mid-Cap index rose 0.25% and the S&P BSE Small-Cap index jumped 0.62%.

The market breadth was strong. On the BSE, 2,321 shares rose and 1,324 shares fell. A total of 222 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 3.39% to 12.81.

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.

Buzzing Index:

The Nifty Private Bank index fell 0.31% to 28,417.85. The index rallied 1.34% in the past two consecutive trading sessions.

Kotak Mahindra Bank (down 1.41%), HDFC Bank (down 0.60%), Axis Bank (down 0.52%) and ICICI Bank (down 0.50%) were the top losers.

On the other hand, RBL Bank (up 3.73%), Bandhan Bank (up 2.35%) and Federal Bank (up 1.88%) edged higher.

Stocks in Spotlight:

Alembic Pharmaceuticals surged 8.40% after the company received final approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Doxorubicin Hydrochloride Liposome Injection.

ITD Cementation India rallied 4.22% after the company secured an international marine contract worth $67.4 million (approximately Rs 580 crore) for jetty construction works related to the Ruwais LNG project in Abu Dhabi.

Interarch Building Solutions rose 0.69%. The company announced that it has secured an order worth Rs 77 crore from Amara Raja Infra.

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