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Sensex, Nifty trade flat after positive start amid IT sell-off
Jul-31-2026

Indian markets made positive start on Friday tracking overnight gains on Wall Street as well as firm trade in Asian counterparts. Fall in crude oil prices also aided the domestic sentiment. Sensex and Nifty soon turned volatile and were trading flat in early deals. Gains in Capital Goods, Auto, Industrials, Power stocks helping the markets to stay in positive territory, while a sharp decline in information technology (IT) shares limit the upside. Some support came amid foreign fund follows as provisional data showed that foreign portfolio investors (FPIs) bought shares worth Rs 3,623.51 crore in the Indian equity market on July 30, 2026. Also, the rupee strengthened sharply against the US dollar, supported by sustained foreign fund inflows and softer crude prices.

On the global front, Asian markets were trading higher, led by a sharp rebound in South Korean shares, while investors digested the Bank of Japan’s decision to leave interest rates unchanged and a fresh batch of regional economic data. The regional rally followed a strong session on Wall Street, where Microsoft and Amazon delivered earnings that reinforced optimism over sustained AI investment, lifting the Nasdaq and broader technology sector.

The BSE Sensex is currently trading at 77905.90, down by 22.25 points or 0.03% after trading in a range of 77809.93 and 78069.91. There were 18 stocks advancing against 12 stocks declining on the index.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.53%, Auto up by 1.23%, Industrials up by 1.19%, Power up by 1.01% and Realty up by 0.88%, while IT down by 2.33%, TECK down by 1.66%, FMCG down by 0.59%, Oil & Gas down by 0.38% and Energy down by 0.33% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 5.87%, Bajaj Finserv up by 3.89%, Mahindra & Mahindra up by 2.92%, Bharat Electronics up by 0.97% and Interglobe Aviation up by 0.62%. On the flip side, TCS down by 3.33%, Infosys down by 3.30%, HCL Technologies down by 2.13%, ITC down by 1.14% and Tech Mahindra down by 1.07% were the top losers.

Meanwhile, Additional Secretary in the Department of Commerce, Darpan Jain has said the India-European Union (EU) Free Trade Agreement (FTA) includes a comprehensive work plan to address concerns surrounding the EU's Carbon Border Adjustment Mechanism (CBAM), commonly referred to as the carbon tax. He also expressed confidence that domestic small and medium enterprises (SMEs) would not face significant challenges due to the measure. Jain said CBAM was one of the most intensively negotiated aspects of the agreement.

He said 'The first pillar is that, in case of flexibility in future, that will be available to India. So there is an obligation in that. Second, CBAM compliances are a concern among SMEs in terms of verification, in terms of finding out what is the value of embedded carbon, in terms of ensuring that the verifiers are recognised by the EU authorities. So, there are separate provisions, and we also have a provision in which we can engage with EU authorities on taking into account the carbon price, which is paid in India. As you would know, India also is developing its own carbon pricing mechanism. So, how to offset what is paid in India from what is paid in Europe, so even that is part of it.'

The CBAM came into effect on January 1, 2026. Under the mechanism, the EU imposes a carbon levy on imports of carbon-intensive goods, including steel, aluminium, fertilisers and cement, if their manufacturing emissions exceed prescribed thresholds. At present, the tax applies to steel and aluminium products.

India and the EU concluded negotiations for the FTA in January, 2026 and announced the successful conclusion of the talks. The agreement is expected to be signed later this year and could come into force next year. Jain said the pact would create substantial business opportunities for both sides. He noted that India and the EU together account for nearly one-third of global trade, estimated at around $33 trillion. Highlighting the potential benefits for European exporters, he said Germany, a global automotive manufacturing powerhouse, exports around $286 billion worth of automobiles annually, and the FTA would open significant opportunities for German companies in the Indian market.

The CNX Nifty is currently trading at 24349.30, up by 32.15 points or 0.13% after trading in a range of 24299.70 and 24381.25. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 6.25%, Bajaj Finserv up by 3.49%, Mahindra & Mahindra up by 3.02%, Shriram Finance up by 2.12% and Bharat Electronics up by 0.74%. On the flip side, TCS down by 3.40%, Infosys down by 3.31%, Wipro down by 2.34%, HCL Technologies down by 2.14% and ONGC down by 1.26% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted jumped 2892.46 points or 6.75% to 42,825.76, Nikkei 225 surged 2277.57 points or 3.55% to 64,145.00, KOSPI soared 859.90 points or 13.32% to 6,453.46, Jakarta Composite gained 35.22 points or 0.57% to 6,221.58 and Shanghai Composite added 28.96 points or 0.76% to 3,833.65. On the other hand, Straits Times fell 46.81 points or 0.83% to 5,626.77 and Hang Seng was down by 10.88 points or 0.04% to 25,848.00.
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