Indices edge lower in early trade; breadth strong

The key equity benchmarks traded with minor losses in early trade. The Nifty traded below the 25,450 mark. Media, IT and metal shares declined, while FMCG and realty stocks advanced.

At 09:30 IST, the barometer index, the S&P BSE Sensex, declined 39.93 points or 0.05% to 83,392.96. The Nifty 50 index lost 24.40 points or 0.10% to 25,444.40.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.04% and the S&P BSE Small-Cap index added 0.13%.

The market breadth was strong. On the BSE, 1,859 shares rose and 1,087 shares fell. A total of 189 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 760.11 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 1,028.84 crore in the Indian equity market on 4 July 2025, provisional data showed.

Economy:

India's foreign exchange reserves rose by $4.84 billion to $702.78 billion in the week ended June 27, the Reserve Bank of India (RBI) said on Friday, July 4.

Foreign currency assets surged by $5.75 billion to $594.82 billion. Gold reserves fell by $1.23 billion to $84.5 billion during the reported week, while special drawing rights (SDRs) rose by $158 million to $18.83 billion.

India's reserve position with the International Monetary Fund (IMF) also increased by $176 million to $4.62 billion, central bank data showed.

Stocks in Spotlight:

Hazoor Multi Projects jumped 14.32% after the company announced that it has secured order worth Rs 913 crore from Apollo Green Energy (formerly Apollo International) for the execution of a 200 MW grid-connected solar photovoltaic (PV) project in Gujarat. Completion is expected by March 2026.

Texmaco Rail & Engineering rose 1.08% after the company said that it has received an order worth Rs 36.27 crore from Transport Corporation of India (TCI) for the supply of two rakes, comprising 54 ACT-3 type wagons and two BVCM wagons. The order is scheduled to be executed within 24 months.

Dhanlaxmi Bank rose 4.81% after the company's gross advances grew 17.3% to Rs 12,484 crore as of 30 June 2025 from Rs 10,643 crore as of 30 June 2024. The private lender reported 14.7% growth in total deposits to Rs 16,570 crore in Q1 FY26 as against Rs 14,441 crore recorded in Q1 FY25.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.08% to 6.290 from the previous close of 6.290.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.6675 compared with its close of 85.4000 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement shed 0.51% to Rs 96,500.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.10% to 97.08.

The United States 10-year bond yield rose 0.35% to 4.331.

In the commodities market, Brent crude for September 2025 settlement shed 96 cents or 1.40% to $67.84 a barrel.

Global Markets:

US Dow Jones futures declined 160 points early Monday, indicating a weak opening for Wall Street.

Asian equities also traded lower amid continued uncertainty surrounding US trade policy. President Donald Trump confirmed that the reciprocal tariffs announced in April will take effect on August 1 for countries that have not reached a trade agreement with the US.

US Treasury Secretary Scott Bessent reiterated that the tariffs introduced in April will be enforced starting August 1. While he clarified that this date does not represent a new deadline, he noted it may provide additional time for trade partners to renegotiate terms.

The Reserve Bank of Australia has commenced its two-day policy meeting, with markets widely expecting a 25 basis point rate cut, which would bring the benchmark rate down to 3.60%.

On Thursday, US equity indices closed at record highs, supported by optimism that the administration may again delay the imposition of tariffs. The S&P 500 gained 0.8%, the NASDAQ Composite advanced 1%, and the Dow Jones Industrial Average rose 0.8%. U.S. market was closed Friday for the Independence Day holiday.

Strength in technology stocks also contributed to the rally, with continued investor interest in major artificial intelligence firms such as Nvidia.

Meanwhile, the US economy added 147,000 nonfarm payroll jobs in June, while the unemployment rate held steady at 4.1%, according to the Bureau of Labor Statistics. The labor market data suggests underlying resilience, prompting a reduction in expectations for imminent rate cuts.

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