Barometers edge lower in early trade; VIX jumps 1.33%

The domestic equity indices traded with minor losses in early trade. The Nifty traded below the 24,900 level. Metal, financial services and realty shares advanced while oil & gas, IT and PSU bank shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, fell 162.29 points or 0.19% to 81,597.01. The Nifty 50 index shed 66.50 points or 0.27% to 24,901.27.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index shed 0.24% and the S&P BSE Small-Cap index fell 0.52%.

The market breadth was strong. On the BSE, 1,270 shares rose and 1,749 shares fell. A total of 176 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, added 1.33% to 11.55.

Foreign portfolio investors (FPIs) bought shares worth Rs 374.74 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,103.51 crore in the Indian equity market on 18 July 2025, provisional data showed.

Economy:

India's forex reserves fell $3.04 billion to $699.74 billion for the week ending July 4, data by the Reserve Bank of India showed on Friday.

For the week ending on July 4, foreign currency assets, a major component of the reserves, decreased $3.53 billion to $591.29 billion.

Gold reserves were up by $342 million to stand at $84.5 billion during the week, the RBI said.

The special drawing rights (SDR) were up $39 million to $18.86 billion,

As per the data, India's reserve position with the IMF was also down $107 million at $4.73 billion in the reporting week.

Stocks in Spotlight:

Ceigall India rose 0.22%. The company announced that it has emerged as lowest (L1) bidder for a Rs 58.5 crore project awarded by REC Power Development and Consultancy (RECPDC) for establishment of the 400/220 KV Velgaon substation near Palghar.

HDFC Bank rose 1.46% after the bank's profit after tax (PAT) for the quarter ended June 2025 was at Rs 18,155.21 crore, a growth of 12.24% over the quarter ended June 2024. Net interest income (interest earned less interest expended) for the quarter ended June 2025 grew by 5.4% to Rs 31,440 crore from Rs 29,840 crore for the quarter ended June 2024.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.02% to 6.306 from the previous close of 6.305.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.3050 compared with its close of 86.1650 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement rose 0.10% to Rs 98,119.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.01% to 98.45.

The United States 10-year bond yield shed 0.14% to 4.425.

Global Markets:

Most Asian stocks traded higher on Monday after the People's Bank of China opted to leave its key loan prime rates unchanged, keeping the 1-year rate at 3.0% and the 5-year rate at 3.5%. This move provided a measure of stability in the region, even as broader market sentiment remained shaped by renewed concerns over global trade policy.

Trade developments came back into focus over the weekend following strong signals from Washington. The White House reiterated its stance on tariffs, with U.S. Commerce Secretary Howard Lutnick designating August 1 as the definitive deadline for countries to begin paying newly announced tariffs. Still, Lutnick added that negotiations could continue beyond that date, suggesting a potential window for ongoing dialogue.

In the U.S., major equity indices lost some ground on Friday as uncertainty around the Trump administration's trade strategy persisted. Reports indicated that President Trump remained intent on imposing a 15% to 20% levy on the European Union, even if a broader deal is reached, while the EU was said to be arguing for a 10% tariff in response. Despite continued statements from the White House about ongoing negotiations, the number of new trade deals announced remains notably lower than what Trump had promised earlier in the year.

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