Nifty below 25,450; IT shares decline

The key equity indices witnessed small cuts in afternoon trade as investors engaged in mild profit booking amid uncertainty over the India-US trade deal. Market participants are expected to closely track the upcoming earnings season, developments in the India-US trade agreement, and the evolving tariff situation. The Nifty traded below the 25,450 mark. IT shares declined after advancing in the previous trading session.

At 14:30 IST, the barometer index, the S&P BSE Sensex, declined 90.54 points or 0.11% to 83,342.35. The Nifty 50 index shed 29.95 points or 0.12% to 25,431.05.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index shed 0.23% and the S&P BSE Small-Cap index fell 0.45%.

The market breadth was negative. On the BSE, 1,650 shares rose and 2,348 shares fell. A total of 207 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 1.84% to 12.54.

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.

India-US Trade Deal Update:

Despite prolonged negotiations, there remains uncertainty over the finalization of a trade deal between India and the US.

India and the US are actively engaged in trade negotiations as the July 9 deadline looms. If a deal is not reached by then, Indian exports to the US could face a total tariff of 36 per cent (10% baseline tariffs plus 26% reciprocal tariffs). Trump has indicated that the deadline may not be extended.

Buzzing Index:

The Nifty IT index fell 0.45% to 38,990.85. The index rose 0.80% in the past session.

Tech Mahindra (down 2.02%), Mphasis (down 1.56%), Oracle Financial Services Software (down 1.05%), Persistent Systems (down 0.93%), Wipro (down 0.81%), HCL Technologies (down 0.79%), Infosys (down 0.73%), Coforge (down 0.33%) fell.

On the other hand, LTIMindtree (up 0.49%) and Tata Consultancy Services (up 0.02%) edged higher.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.05% to 6.292 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 86.0025 compared with its close of 85.4000 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement shed 0.25% to Rs 96,742.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.23% to 97.40.

The United States 10-year bond yield rose 0.74% to 4.348.

In the commodities market, Brent crude for September 2025 settlement shed 25 cents or 0.36% to $ 68.55 a barrel.

Stocks in Spotlight:

Senco Gold rose 2.86% after the company reported a 28% year-on-year growth in total revenue during the April'June quarter, supported by festivals that significantly boosted footfalls across showrooms.

Info Edge (India) fell 3.50%. The company reported an 11.18% year-on-year increase in standalone billings to Rs 644.2 crore for the quarter ended 30 June 2025, compared with Rs 579.4 crore recorded in the same period last year.

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