Sensex, Nifty inch up as investors watch US trade talks

The domestic benchmark indices closed slightly higher on Tuesday. Investor sentiment remained cautious as markets awaited developments in U.S. trade talks ahead of the July 9 tariff deadline. Buying was seen in PSU banks, energy, and metal stocks, while FMCG and IT shares faced selling pressure.

The S&P BSE Sensex rose 90.83 points or 0.11% to 83,697.29. The Nifty 50 index added 24.75 points or 0.10% to 25,541.80.

Bharat Electronics (up 2.51%), Reliance Industries (up 1.84%) and HDFC Bank (up 0.56%) boosted the indices.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index shed 0.07% and the S&P BSE Small-Cap index declined 0.18%.

The market breadth was positive. On the BSE, 2,021 shares rose and 1,989 shares fell. A total of 154 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 2.01% to 12.53.

Economy:

The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) ' a single-figure indicator of sector performance ' rose to a 14-month high of 58.4 in June, up from 57.6 in May. The headline figure was above its long-run average of 54.1 and pointed to a substantial improvement in the health of the sector.

Numbers to Track:

The yield on India's 10-year benchmark federal paper slipped 0.19% to 6.304 from the previous close of 6.324.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.5510 compared with its close of 85.7600 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement gained 1.27% to Rs 97,297.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.31% to 96.48.

The United States 10-year bond yield lost 0.14% to 4.196.

Global Markets:

European stocks declined on Tuesday as annual inflation in the Eurozone edged up to 2% in June, according to preliminary data from Eurostat. This marks a slight increase from May, when inflation stood at 1.9%.

Asian shares ended mixed as investors evaluated record highs on Wall Street and the potential global effects of U.S. President Donald Trump's tariff policies. The 90-day tariff reprieve is set to expire next week.

U.S. Treasury Secretary Scott Bessent stated on Monday that countries are negotiating in good faith. However, he cautioned that tariffs could return to the levels announced on April 2 if talks do not progress due to what he described as recalcitrant behavior.

Hong Kong market remained closed for a public holiday. In mainland China, the Caixin Manufacturing PMI rose to 50.4 in June, a significant improvement from May's reading of 48.3. A PMI reading above 50 indicates expansion. This data follows the official government PMI, which showed a third consecutive monthly contraction in Chinese manufacturing activity for June.

On Wall Street, the S&P 500 gained 0.52% to close at another record high. The NASDAQ Composite rose 0.47%, also reaching a new peak, while the Dow Jones Industrial Average climbed 0.63%.

The gains were supported by news of a trade agreement between the United States and China. The agreement raised optimism that further trade deals could be finalized before the July 9 deadline set by President Trump.

Investor sentiment also received a boost after Canada withdrew its digital services tax on technology companies. The tax was scheduled to take effect within hours but was suspended in an effort to revive trade discussions with the United States. President Trump had previously cited the tax as a barrier to negotiations. Canadian Prime Minister Mark Carney and President Trump are now expected to meet with the goal of finalizing a trade agreement by July 21.

Monthly Auto Sales:

Bajaj Auto rose 0.24%. The company has reported total auto sales of 3,60,806 units for June 2025, which is higher by 1% as compared with the figure of 3,58,477 units recorded in June 2024.

Mahindra & Mahindra (M&M) shed 0.25%. The auto major said that its overall auto sales grew by 13.79% to 78,969 vehicles sold in June 2025 as against 69,397 vehicles sold in June 2024.

Further, the company's Farm Equipment Sector (FES) announced that its total tractor sales (domestic + exports) during June 2025 were at 53,392 units, up 12.83% from 47,319 units in May 2024.

Eicher Motors rose 1.11%. The company's unlisted subsidiary, VE Commercial Vehicles (VECV), reported a 0.82% year-on-year marginal declined in commercial vehicle (CV) sales to 7,363 units in June 2025.

Meanwhile, the company's monthly motorcycle sales in June 2025 stood at 89,540 units, which is higher by 22% compared with 73,141 units in the same month a year ago.

TVS Motor Company declined 0.92%. The firm has registered sales of 402,001 units in June 2025, which is higher by 20% as compared with the 333,646 units sold in June 2024.

Atul Auto slipped 0.92%. The company reported 2.93% increase in total sales to 2,705 units in June 2025 as against 2,628 units sold in June 2024.

Ashok Leyland added 0.20%. The company reported a 3% rise in total commercial vehicle sales to 15,333 units in June 2025 from 14,940 units sold in June 2024.

SML Isuzu jumped 6.02% after the company said that it has sold 1,871 units in June 2025, registering a growth of 6.3% from 1,760 units sold in the same period last year.

Steel Strips Wheels (SSWL) fell 4.57%. The company reported a net turnover of Rs 350.67 crore for June 2025, down 2.08% YoY growth compared to Rs 358.11 crore posted in June 2024.

Escorts Kubota slipped 0.55%. The company said that its Agri Machinery Business has sold 11,498 tractors in June 2025, registering a growth of 2.2% as compared with 11,245 tractors sold in June 2024.

VST Tillers Tractors advanced 0.77% after the company's total sales surged 92.69% to 7,149 units in June 2025 from 3,710 units sold in June 2024.

Stocks in Spotlight:

Index heavyweight Reliance Industries rose 1.84% to Rs 1528.30 after a domestic broker raised its target price on the stock to Rs 1,801 per share, reiterating its 'buy' call.

Gabriel India hit an upper limit of 20% after the company's board approved a comprehensive restructuring scheme aimed at transforming the company into a diversified mobility solutions provider. The plan involves the amalgamation of Anchemco India Private Limited into Asia Investments Private Limited (AIPL), followed by the demerger of AIPL's automotive business into Gabriel India. As part of the transaction, Gabriel India will issue 1,158 equity shares of Rs 1 each for every 1,000 equity shares of Rs 10 each held in AIPL. The transaction qualifies as a related party arrangement and is being executed on an arm's length basis. The proposed composite scheme of arrangement is expected to take 10 to 12 months for completion, assuming timely approvals.

Shares of Raymond Realty, the recently demerged real estate arm of Raymond, listed on the stock exchanges today. The stock debuted at Rs 1,000 on the NSE, compared to a discovered price of Rs 1,039.30. On the BSE, it opened at Rs 1,005, against a discovered price of Rs 1,031.30. The stock settled at Rs 999 on the NSE and Rs 962.50 on the BSE.

RailTel Corporation of India shed 0.60%. The company announced that it has received a Letter of Acceptance from the Cuttack Development Authority for a work order valued at Rs 15.84 crore.

Nesco advanced 2.61% after the company said that its board has approved a capex of up to Rs 3,500 crore for for development of Tower 2 in IT Park at Nesco Center, Goregaon.

JTL Industries declined 2.03%. The company said that it has recorded 26.5% growth in quarterly sales volume to 1,08,406 MT in Q1 FY26 from 85,674 MT in Q1 FY25.

Hindustan Copper (HCL) gained 1.52% after the company said that it has executed a memorandum of understanding (MoU) with Coal India (CIL) to jointly participate in copper and critical minerals sectors.

NMDC fell 2.90% after the state-owned iron ore miner informed that it has reduced the prices of its lump ore and fines, with the effect from 1 July, 2025.

Praj Industries shed 1.31%. The company announced that Shishir Joshipura has tendered his resignation from the position of managing director and chief executive officer (CEO) of the company, effective from 30 June 2025.

Can Fin Homes shed 0.02%. The company informed that its board has approved the appointment of Abhishek Mishra as the chief financial officer (CFO) of the company for a period of 3 years w.e.f. from 30 June 2025.

New Listing:

Shares of Kalpataru settled at Rs 433.80 on the BSE, a premium of 4.78% compared with the issue price of Rs 414.

The scrip was listed at Rs 414.10, exhibiting a premium of 0.02% to the issue price. The stock has hit a high of 453 and a low of 414.10. On the BSE, over 7.32 lakh shares of the company were traded in the counter.

Shares of Ellenbarrie Industrial Gases were at Rs 541.20 on the BSE, a premium of 35.30% compared with the issue price of Rs 400.

The scrip was listed at Rs 492, exhibiting a premium of 23% to the issue price. The stock has hit a high of 541.20 and a low of 485.65. On the BSE, over 50.83 lakh shares of the company were traded in the counter.

Shares of Globe Civil Projects were at Rs 94.72 on the BSE, a premium of 33.41% compared with the issue price of Rs 71.

The scrip was listed at Rs 91.10, exhibiting a premium of 28.31% to the issue price. The stock has hit a high of 91.10 and a low of 86.65. On the BSE, over 15.03 lakh shares of the company were traded in the counter.

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