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EQUITY
Post Session: Quick Review
Jul-04-2025

Indian equity benchmarks recovered from intraday losses on Friday, with both the Nifty and Sensex closing near the day’s highs, supported by gains in IT and banking stocks. After making a slightly positive start, indices traded near the neutral lines during the morning session, as investors were cautious ahead of the upcoming deadline to impose tariffs by US President Donald Trump. In the afternoon, markets turned negative but managed to recover and end day with decent gain.

Some of the important factors in today’s trade:

India’s economy likely to grow 6.4-6.7% in FY26: Traders took some support with the newly appointed Confederation of Indian Industry (CII) President Rajiv Memani’s statement that the country’s economy is likely to grow 6.4-6.7 per cent during the current financial year (FY26) driven by strong domestic demand, even as geopolitical uncertainty poses downside risks.

China mineral curbs a wake-up call for India: Traders took a note of think tank GTRI stated that China's export curbs on critical minerals crucial for India's electronics sectors are no longer mere warnings but a wake-up call for New Delhi, underscoring the need for urgent measures like reverse-engineering of low- to mid-tech imports to cut overreliance on Beijing.

Foreign fund outflow: Traders overlooked the Foreign institutional investors (FIIs) stayed net sellers in the cash segment for the fourth session in a row. On July 3 alone, they sold Indian equities worth Rs 13,154.15 crore, while their purchases stood at Rs 11,672.96 crore, resulting in a net outflow of Rs 1,481 crore. 

Global front: European markets were trading in red, as regional data disappointed, and uncertainty prevailed over U.S. trade deals. Asian markets ended mostly in red ahead of President Donald Trump's July 9 deadline to impose reciprocal tariffs. U.S. President Donald Trump warned countries to strike deals before the deadline or face tariffs.

The BSE Sensex ended at 83432.89, up by 193.42 points or 0.23% after trading in a range of 83015.83 and 83477.86. There were 19 stocks advancing against 11 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.23%, while Small cap index up by 0.17%. (Provisional)

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.26%, Energy up by 0.90%, Realty up by 0.87%, IT up by 0.67% and Healthcare up by 0.64%, while Metal down by 0.46%, Consumer Discretionary down by 0.35%, Telecom down by 0.22%, Basic Materials down by 0.16% and Auto down by 0.16% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bajaj Finance up by 1.63%, Infosys up by 1.29%, ICICI Bank up by 1.18%, Hindustan Unilever up by 1.13% and HCL Technologies up by 0.95%. On the flip side, Trent down by 11.35%, Tata Steel down by 1.63%, Tech Mahindra down by 1.08%, Maruti Suzuki down by 0.75% and Adani Ports and Special Economic Zone down by 0.56% were the top losers. (Provisional)

Meanwhile, the Moody's Ratings in its outlook on Asia Pacific sovereigns has said that India may be subject to lower tariffs than many countries in the Asia Pacific (APAC), which could help the economy attract further investment and become a global manufacturing base. It said many export-reliant APAC economies were hit with very high US tariffs in April. It stated while negotiations will likely lead to some reduction in tariffs and other trade barriers on a bilateral basis, policy uncertainty is challenging investment decisions and disrupting trade. 

Uncertainty about trade policy and a potential overhaul of global trade have raised cyclical and possibly structural credit risks in APAC, it said, adding that economies like Vietnam and Cambodia, which benefited from a diversification of investment and manufacturing out of China and now face high US tariffs, are particularly at risk. It mentioned ‘In contrast to countries like Cambodia and Vietnam, India has the potential to emerge as a beneficiary of a tariff-driven shift in investment and trade flows. India may be subject to lower tariffs than many in APAC, which could help the economy attract further investment flows and support its development as a global manufacturing base.’

Further, it said the signing of a free trade agreement with the UK in May and ongoing efforts to establish the same with the EU will further support such development. However, the US goal to reshore select manufacturing segments could challenge the extent to which India benefits. On April 2, the US imposed an additional 26 per cent reciprocal tariff on Indian goods but suspended it for 90 days. However, the 10 per cent baseline tariff imposed by America remains in place. India is seeking full exemption from the additional 26 per cent levy. Currently, officials of India and the US are negotiating a proposed interim trade agreement between the two countries. 

While India is seeking greater market access for its labour-intensive goods, the US wants duty concessions for its agricultural products. These talks are important as the suspension of US reciprocal tariffs is ending on July 9. The two sides are looking at finalising the talks before that. Moody's also said that potential shifts in investment and trade flows stemming from tariffs will take years to materialise, and it is unlikely that multinational companies will make drastic investment changes while there is still significant uncertainty about the magnitude of tariffs and whether they will persist.

The CNX Nifty ended at 25461.00, up by 55.70 points or 0.22% after trading in a range of 25331.65 and 25470.25. There were 29 stocks advancing against 21 stocks declining on the index. (Provisional) 

The top gainers on Nifty were Bajaj Finance up by 1.66%, Infosys up by 1.36%, Dr. Reddy's Lab up by 1.25%, ICICI Bank up by 1.19% and Hindustan Unilever up by 1.12%. On the flip side, Trent down by 11.87%, Tata Steel down by 1.75%, Eicher Motors down by 1.52%, Tech Mahindra down by 1.00% and Maruti Suzuki down by 0.83% were the top losers. (Provisional)

European markets were trading in red; France’s CAC fell 74.22 points or 0.96% to 7,680.43 and Germany’s DAX lost 168.18 points or 0.70% to 23,764.43, and UK’s FTSE 100 decreased 24.51 points or 0.28 % to 8,798.89.

Asian markets ended mostly down on Friday due to concerns over US President Donald Trump's tariff threats ahead of the July 9 deadline. Investors also reacted to the passage of Trump's tax-cut and spending bill that is set to massively widen the budget deficit and leave an added 12 million Americans without health insurance. Seoul shares declined on profit booking after US Treasury Secretary Scott Bessent said the US and India are nearing a deal but talks with Japan and South Korea have been stalled for weeks. However, Japanese shares gained marginally tracking Wall Street’s gains overnight as a robust jobs report along with encouraging jobless claims and service sector activity readings helped ease worries of slowdown in the US economy. Chinese shares rose on signs of de-escalating US-China trade tensions, with the US lifting chip design software curbs against China and the latter moving to restart rare earths exports to the United States.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,481.49

20.34

0.58

Hang Seng

23,954.05

-115.89

-0.48

Jakarta Composite

6,863.86

-14.19

-0.21

KLSE Composite

1,550.19

1.20

0.08

Nikkei 225

39,804.41

18.51

0.05

Straits Times

4,009.50

-10.07

-0.25

KOSPI Composite

3,053.90

-62.37

-2.04

Taiwan Weighted

22,547.50

-165.47

-0.73
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