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Benchmarks trade near neutral lines with marginal gains
May-07-2025

Benchmarks were hovering near the neutral lines with marginal gains in late afternoon session. The stock jumped back and forth as the traders took a risk averse approach amid intensified geopolitical tensions between India and Pakistan, following missile strikes by Indian armed forces on terror targets in Pakistan and Pakistan-Occupied Kashmir (PoK). However, the downside remained capped as the investor sentiments remained optimistic after India and the UK clinched a 'landmark' trade deal that will remove taxes on the export of labour-intensive products, while making imports of whisky and cars from Britain cheaper, in a bid to double trade between the two economies to $120 billion by 2030.

On the global front, Asian equity markets are trading mostly in green after confirmation that trade talks between the U.S. and China would take place in Switzerland this week, the first formal talks between the countries since U.S. President Donald Trump declared sweeping tariffs last month. European equity markets were trading mostly in red as the market participants remained cautious ahead of Fed's monetary policy announcement later in the day. 

Back home, significant strength has been seen in auto stocks, which saw NIFTY Auto surging 1.57% or 357.50 points to 23,095.10 points, as the India-Uk trade deal will reduce the tariffs on automobile exports to the UK.

The BSE Sensex is currently trading at 80723.01, up by 81.94 points or 0.10% after trading in a range of 79937.48 and 80844.63. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged 1.28%, while Small cap index was up by 0.77%.

The top gaining sectoral indices on the BSE were Auto up by 1.65%, Metal up by 1.42%, Consumer Durables up by 1.06%, Consumer discretionary up by 1.04%, Realty up by 0.82%, while FMCG down by 0.50% and Healthcare down by 0.02% were the only losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 4.81%, Bajaj Finance up by 1.85%, Tata Steel up by 1.39%, Adani Ports up by 1.38% and Titan Company up by 1.36%. On the flip side, Asian Paints down by 3.37%, Sun Pharmaceutical Industries down by 1.80%, ITC down by 1.01%, HCL Technologies down by 0.98% and Nestle down by 0.77% were the top losers.

Meanwhile, the National Association of Software and Service Companies (NASSCOM) has termed the India-UK Free Trade Agreement (FTA) a landmark deal, and said the pact by eliminating double contribution burden directly addresses a long-standing challenge faced by Indian technology companies and other service providers operating in the UK. It said the FTA opens up avenues for deeper collaboration in emerging areas such as artificial intelligence (AI), cybersecurity, and digital transformation, while also creating a conducive environment for startups and innovators. 

The industry body said the India-UK FTA stands testament to the deepening economic partnership between two global innovation hubs and represents a significant step toward fostering trade, investment, and job creation in both nations. This agreement will catalyse bilateral trade in services, foster cross-border innovation, and generate high-quality employment opportunities for Indian talent. It added that the enhanced ease of doing business and regulatory transparency under this FTA will further strengthen India's position as a trusted partner to the world.

It said the inclusion of the Double Contribution Convention, which exempts Indian workers temporarily employed in the UK and their employers from paying social security contributions for a period of three years, drew praises from the apex industry association. By eliminating this double contribution burden, the agreement directly addresses a long-standing challenge faced by Indian Technology companies and other service providers operating in the UK. This exemption will not only enhance the access of Indian talent in the UK but also create new opportunities for skilled professionals, enabling them to contribute meaningfully to the UK's dynamic economy.

NASSCOM said the provision reflects the recognition of India's strength in delivering high-quality services globally and reinforces the importance of mobility for Indian professionals in driving innovation and growth. The FTA's focus on digitally delivered services, professional services, and financial services aligns perfectly with the aspirations of the Indian technology sector. It opens up avenues for deeper collaboration in emerging areas such as artificial intelligence, cybersecurity, and digital transformation, while also creating a conducive environment for startups and innovators.

The CNX Nifty is currently trading at 24412.70, up by 33.10 points or 0.14% after trading in a range of 24220.00 and 24449.60. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 4.78%, Coal India up by 2.13%, Bajaj Finance up by 1.94%, Shriram Finance up by 1.94% and JIO Financial Services up by 1.91%. On the flip side, Asian Paints down by 3.08%, Sun Pharmaceutical Industries down by 1.79%, Bajaj Auto down by 1.35%, HCL Technologies down by 1.01% and ITC down by 0.90% were the top losers.

Asian markets are trading mostly in green; Hang Seng advanced 29.17 points or 0.13% to 22,691.88, Jakarta Composite gained 41.22 points or 0.6% to 6,939.42, Shanghai Composite strengthened 26.56 points or 0.79% to 3,342.67, KOSPI increased 14.01 points or 0.54% to 2,573.80 and Taiwan Weighted added 23.9 points or 0.12% to 20,546.49, while Nikkei 225 slipped 51.03 points or 0.14% to 36,779.66 and Straits Times fell 2.82 points or 0.07% to 3,857.59.

European markets were trading mostly in red; UK’s FTSE 100 decreased 33.51 points or 0.39% to 8,563.91 and France’s CAC fell 39.78 points or 0.52% to 7,657.14, while Germany’s DAX gained 10.63 points or 0.05% to 23,260.28.
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