Indices drift lower in early trade; breadth strong

The key equity indices traded with minor losses in early trade amid investors remained cautious as Donald Trump announced a 19% tariff on products that Indonesia sells to the United States. Investors are assessing the tariff development, and ongoing corporate earnings. Nifty slipped below the 25,150 mark.

Auto, metal and pharma shares declined while media, PSU bank and consumer durables shares advanced.

At 09:25 IST, the barometer index, the S&P BSE Sensex declined 159.54 points or 0.18% to 82,417.67. The Nifty 50 index fell 51.65 points or 0.21% to 25,144.30.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.17% and the S&P BSE Small-Cap index jumped 0.22%.

The market breadth was strong. On the BSE, 1,923 shares rose and 1,045 shares fell. A total of 161 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 120.47 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,555.03 crore in the Indian equity market on 15 July 2025, provisional data showed.

Stocks in Spotlight:

ICICI Lombard General Insurance Company rose 0.63%. The company reported a 28.7% jump in standalone net profit 747.08 crore on 14.3% increase in total income to Rs 6,408.54 crore in Q1 FY26 over Q1 FY25.

HDFC Life Insurance Company advanced 1.19% after the company consolidated net profit jumped 14.5% to Rs 548.35 crore on 9.6% increase in total income to Rs 29,627.66 crore in Q1 FY26 over Q1 FY25.

Just Dial rose 0.28%. The company's consolidated net profit climbed 38.4% to Rs 115.74 crore on 16.2% jump in net sales to Rs 270.27 crore in Q1 June 2025 over Q1 June 2024.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.06% to 6.317 from the previous close of 6.312.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 86.0325 compared with its close of 85.7625 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement rose 0.21% to Rs 97,411.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.04% to 98.60.

The United States 10-year bond yield fell 0.20% to 4.482.

In the commodities market, Brent crude for September 2025 settlement rose 14 cents or 0.20% to $68.85 a barrel.

Global Markets:

Asian market traded mixed on Wednesday after US President Donald Trump claimed a preliminary trade deal with Indonesia, which surprisingly includes a 19% tariff on the country's exports to the US.

Eyes are also on Indonesia's central bank, which is expected to announce its policy decision later today.

Back in the US, stocks ended mostly lower on Tuesday despite early gains in tech. The S&P 500 slipped 0.4% and the Dow tumbled 0.98%, while the Nasdaq eked out a modest 0.18% rise. Both the S&P 500 and Nasdaq briefly touched record highs before retreating.

June's consumer price index came in slightly hotter than expected, reigniting concerns that fresh tariffs could add more heat to inflation. According to the Bureau of Labor Statistics, consumer prices rose 2.7% year-on-year and climbed 0.3% between May and June. The data bolstered expectations that the Federal Reserve will hold off on any rate cuts for now.

Tariff jitters were far from over. Trump doubled down Tuesday evening, confirming that his proposed 200% tariffs on pharmaceutical imports will kick in by month-end, alongside a broader package of trade levies. Earlier, he announced a 30% tariff on imports from Mexico and the EU. The European Union pushed back sharply and is reportedly preparing retaliatory tariffs on US products including cars and alcohol.

In earnings land, Wall Street's biggest banks kicked off the season with a bang. JPMorgan Chase, Citigroup, and Wells Fargo all topped Q2 profit estimates, thanks to solid performance in both consumer and investment banking segments.

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