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Benchmarks likely to make cautious start amid mixed global cues
Jul-03-2025

Indian equity markets are likely to make cautious start, amid mixed global cues. Traders are adopting a wait-and-watch approach ahead of the conclusion of the India-U.S. trade deal. Besides, sentiments may remain subdued ahead of the release of India’s final Services PMI data for June. Moreover, there may be some volatility due to potential foreign institutional investor (FII) outflows.

Some of the key factors to be watched:

PM Modi arrives in Ghana on first leg of five-nation tour: Prime Minister Narendra Modi has arrived in Ghana on a two-day visit during which he will hold talks with the West African country's top leadership and review the strong bilateral partnership.

Jaishankar holds talks with 3 top officials of Trump administration: External Affairs Minister S Jaishankar and his American counterpart Marco Rubio held talks focused on deepening the India-US collaboration in key sectors such as trade, defence, energy, mobility and critical technologies.

India may soon have social security agreement with UK under free trade pact: A private report said that India may soon have a social security pact with the UK as an in-built component of the free trade agreement (FTA) which has been finalised between the two countries.

RBI directs banks, other lenders not to levy pre-payment charges on business loans to individuals, MSEs: The RBI has directed banks and other lenders not to levy any pre-payment charges on all floating-rate loans and advances, including for business purposes, availed by individuals and micro and small enterprises (MSEs).

Fool-proof mechanism in place to implement ELI scheme: Labour ministry has worked out a fool-proof mechanism using digital tools to implement the Rs 1.07 lakh crore Employment Linked Incentive (ELI) scheme, which aims to create 3.5 crore jobs over the next two years.

On the global front: The U.S. markets ended mostly in green on Wednesday despite the release of a report from payroll processor ADP showing private sector employment in the U.S. unexpectedly decreased in the month of June. Asian markets are trading mixed on Thursday, after President Donald Trump announced that he has reached a trade deal with Vietnam.

Back home, Indian equity benchmarks ended lower on Wednesday, dragged down by selling pressure in Bajaj Finserv, Larsen & Toubro and Bajaj Finance shares ahead of the impending US tariff deadline. After making slightly positive start, the markets unable to sustain gains and traded lower for remaining part of the session. However, key gauges managed to recover some of the losses towards the end. Finally, the BSE Sensex fell 287.60 points or 0.34% to 83,409.69 and the CNX Nifty was down by 88.40 points or 0.35% to 25,453.40.

Some of the important factors in trade: 

Cabinet approves employment linked incentive scheme to catalyze job creation: With an aim to support employment generation, enhance employability and social security across all sectors, with special focus on the manufacturing sector, the Union Cabinet has approved the Employment Linked Incentive (ELI) Scheme.

India’s gross GST collections grow 6.2% to over Rs 1.84 lakh crore in June: India’s gross Goods and Services Tax (GST) collections for the month of June stood at over Rs 1.84 lakh crore recording a 6.2 per cent growth over same period last year when the gross GST collections stood at Rs 1,73,813 crore.

Jaishankar holds talks with Japanese counterpart focusing on bilateral cooperation: Focusing on bilateral cooperation in diverse sectors such as infrastructure, investment and mobility, External Affairs Minister S Jaishankar has hold talks with his Japanese counterpart Takeshi Iwaya. The Jaishankar-Iwaya talks took place ahead of a crucial foreign ministerial meeting of the four-nation grouping Quad.  

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