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Markets likely to make cautious start amid mixed global cues
Jul-08-2025

Indian equity markets are likely to a make cautious start on Tuesday influenced by mixed global cues. Investors may remain cautious amid escalating trade tensions, following U.S. President Trump's announcement of fresh tariff rates on 14 trading partners. However, some support may come amid Foreign Institutional Investors (FIIs) fund inflows.

Some of the key factors to be watched:

PM Modi meets Presidents of Bolivia, Uruguay: Prime Minister Narendra Modi met Bolivian President Luis Alberto Arce Catacora and discussed ways to bolster cooperation in areas such as critical minerals, trade and investment, healthcare and space, among others.

PM Modi discusses review of ASEAN-India FTA with Malaysian counterpart: The review of the ASEAN-India FTA figured during Prime Minister Narendra Modi's talks with his Malaysian counterpart Anwar bin Ibrahim on the side-lines of the BRICS summit.

Sebi mulls relaxing restrictions on business activities of mutual funds: Markets regulator Sebi has proposed allowing asset management companies (AMCs) or their subsidiaries to offer additional services related to fund management, such as acting as Points of Presence (POP) for pension schemes and serving as global distributors for the funds they manage or advise.

DFS secretary urges Fintechs to focus on driving offline payment solutions to boost financial inclusion:  Department of Financial Services Secretary M Nagaraju has urged fintechs to focus on driving offline payment solutions to enhance financial inclusions. Also, he urged fintechs to use technologies such as artificial intelligence (AI) to enhance user convenience by simplifying the payment process.

DPIIT reviews 22 issues affecting infra projects worth Rs 36,296 crore: The Department for Promotion of Industry and Internal Trade (DPIIT) has reviewed 22 issues affecting 18 infrastructure projects worth Rs 36,296 crore in Gujarat and Rajasthan.

On the global front: The U.S. markets ended in red on Monday, after President Donald Trump shared screen shots on Truth Social of letter sent to various world leaders about new tariffs set to be imposed on August 1. Asian markets are trading mostly in green on Tuesday, ahead of the Reserve Bank of Australia's interest rate decision. 

Back home, Indian equity benchmarks traded within a narrow range throughout the session and ended flat on Monday amid caution ahead of the anticipated US tariff announcements, weak trends in Asian markets and foreign fund outflows. Finally, the BSE Sensex rose 9.61 points or 0.01% to 83,442.50 and the CNX Nifty was up by 0.30 points to 25,461.30.

Some of the important factors in trade: 

India needs nominal GDP growth rate of 10% annually to achieve Viksit Bharat goal: In order to achieve the government's vision of Viksit Bharat by 2047, the Confederation of Indian Industry (CII) President Rajiv Memani has said India needs an average nominal Gross Domestic Procut (GDP) growth rate of 10% annually. 

FTA between India-EFTA likely to come into force in next couple of months: Commerce and Industry Minister Piyush Goyal has said that the free trade agreement (FTA) between India and the four-nation European bloc EFTA (European Free Trade Association) is likely to come into force in the next couple of months.  

Auto stocks in focus: Auto stocks were in focus as Federation of Automotive Dealers Associations (FADA) said that automobile retail sales in India rose around 5 per cent year-on-year in June 2025 with all vehicle segments, including passenger vehicles and two-wheelers, witnessing growth.

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