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Sensex, Nifty trade higher; Manufacturing PMI eyed
Jul-01-2025

Indian equity benchmarks made flat-to-positive start on Tuesday tracking firm global cues. Investors also monitored trade negotiations with the U.S. ahead of President Donald Trump's July 9 tariff deadline. Sensex and Nifty soon gained some traction and are trading higher in early deals on account of value buying. Some support came as the government data showed that gross goods and services tax (GST) collections doubled in five years to reach an all-time high of Rs 22.08 lakh crore in the 2024-25 fiscal year, from Rs 11.37 lakh crore in FY21. Though, upside remained capped as India's industrial production growth slowed to a nine-month low of 1.2 per cent in May 2025 due to poor performance of manufacturing, mining and power sectors caused by the early onset of Monsoon. Investors are looking ahead to the Manufacturing PMI data to be out later in the day for more directional cues.

On the global front, Asian markets are trading mostly higher, following the broadly positive cues from Wall Street overnight, amid ongoing optimism about trade deals ahead of the impending deadline for U.S. reciprocal tariffs early next month. Market sentiment also improved as the truce in the 12-day war between Israel and Iran continued to hold without violations from either side. However, Japanese shares came under selling pressure after Trump threatened to impose a fresh tariff level on Japan. Meanwhile, Hong Kong is closed for the Special Administrative Region Establishment Day. Back home, banking stocks are in focus as the Reserve Bank said the gross non-performing assets (NPAs) of the banking system declined to a multi-decadal low of 2.3 per cent in March 2025.

The BSE Sensex is currently trading at 83861.89, up by 255.43 points or 0.31% after trading in a range of 83597.51 and 83874.29. There were 20 stocks advancing against 9 stocks declining, while 1 stock remain unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.08%, while Small cap index was up by 0.05%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.98%, Industrials up by 0.53%, TECK up by 0.52%, IT up by 0.45% and Energy up by 0.43%, while Metal down by 0.26%, Bankex down by 0.11%, Basic Materials down by 0.02% were the few losing indices on BSE.

The top gainers on the Sensex were Bharat Electronics up by 3.04%, Asian Paints up by 1.59%, Reliance Industries up by 1.13%, Bharti Airtel up by 0.88% and Mahindra & Mahindra up by 0.81%. On the flip side, Axis Bank down by 1.21%, Trent down by 0.81%, Sun Pharma down by 0.69%, Eternal down by 0.55% and SBI down by 0.35% were the top losers.

Meanwhile, Finance Minister Nirmala Sitharaman has underlined the crucial role of private capital in driving sustainable development, and said that it is both an urgent necessity and a significant opportunity. She said that private investment is a catalytic force, unlocking capital, boosting productivity, fostering innovation, and introducing technological rigour - all essential for inclusive, sustainable economic growth, according to an official statement. In an era of volatile FDI flows and mounting global uncertainty, she said private capital has emerged as an increasingly important source of development finance.

She said ‘In recent years, we have witnessed encouraging growth in private investment, supported by the rise of innovative financial instruments alongside traditional sources. However, private capital mobilization remains significantly below what is required, with low- and middle-income countries receiving a disproportionately small share’. This underscores the urgent need for targeted efforts to overcome investment barriers and better align financial flows with development priorities. She said ‘Mobilizing private capital is not merely a financing strategy - it is a development imperative. With coordinated action, thoughtful regulation, and shared ambition as reflected in Compromiso de Sevilla, we can ensure that private investment becomes a force for inclusive, sustainable, and resilient growth’.

Talking about key challenges for emerging economies, she said these include the high cost of capital, a shortage of bankable projects, regulatory and institutional constraints, limited local capacity, and high perceptions of risk – both country-specific and currency-related. Effective mobilization of private capital demands a multi-pronged strategy, combining robust domestic reform with strengthened international cooperation. Pointing out seven strategic areas where transformation is both necessary and achievable, she said, strong domestic financial markets, addressing perceived risks through institutional reforms, creating scale in investment opportunities and scaling up of blended finance.

Besides, she said Multilateral Development Banks (MDBs) and Development Finance Institutions (DFIs) must assume a stronger enabling role for mobilization of private capital. Stressing that international credit rating methodologies must evolve to better reflect the structural strengths and long-term resilience of EMDEs, she said current sovereign ratings often understate key fundamentals. She added reforming rating methodologies would not only enhance fairness but also reduce financing costs and unlock far greater volumes of private investment. Finally, she said, unlocking capital at the grassroots level requires support for MSMEs.

The CNX Nifty is currently trading at 25580.10, up by 63.05 points or 0.25% after trading in a range of 25513.80 and 25589.80. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Apollo Hospital up by 3.63%, Bharat Electronics up by 3.06%, Asian Paints up by 1.45%, Reliance Industries up by 1.16% and Mahindra & Mahindra up by 0.91%. On the flip side, Axis Bank down by 1.18%, Trent down by 0.91%, Sun Pharma down by 0.73%, Shriram Finance down by 0.69% and Eternal down by 0.55% were the top losers.

Asian markets are trading mostly higher; Taiwan Weighted jumped 355.11 points or 1.6% to 22,611.13, KOSPI increased 44.06 points or 1.43% to 3,115.76, Straits Times rose 32.05 points or 0.81% to 3,996.34 and Shanghai Composite strengthened 7.26 points or 0.21% to 3,451.69. On the other hand, Nikkei 225 slipped 389.81 points or 0.96% to 40,097.58 and Jakarta Composite was down by 19.58 points or 0.28% to 6,908.10.
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