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Bourses continue to trade sluggish in early afternoon session
Jul-02-2025

Indian markets continued their sluggish trade in early afternoon session following mixed cues from other Asian markets. Investors were cautious about Trump’s reciprocal trade tariffs. U.S. President Donald Trump said he is not considering delaying his July 9 deadline for higher tariffs to resume. Besides, traders were awaited for upcoming corporate earnings. Sectorally, IT and Teck stocks were trading mostly higher as credit rating agency ICRA reaffirmed a stable outlook for the Indian IT services industry, forecasting a year-on-year revenue growth of 2-3 per cent in US dollar terms for the fiscal year 2025-26. On the global front, Asian markets were trading mixed as traders cautiously watch developments on the tariff front as the deadline of July 9 set by the US President Donald Trump nears. 

The BSE Sensex is currently trading at 83528.12, down by 169.17 points or 0.20% after trading in a range of 83471.57 and 83935.01. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.09%, while Small cap index was down by 0.18%.

The top gaining sectoral indices on the BSE were Metal up by 1.47%, Basic Materials up by 0.86%, Telecom up by 0.78%, Consumer Durables up by 0.57% and TECK was up by 0.45%, while Realty down by 1.06%, Industrials down by 0.70%, Capital Goods down by 0.68%, Bankex down by 0.41% and PSU was down by 0.38% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.56%, Ultratech Cement up by 1.99%, Bharti Airtel up by 0.87%, Tata Motors up by 0.78% and Asian Paints up by 0.76%. On the flip side, Bajaj Finserv down by 1.99%, Bajaj Finance down by 1.89%, Bharat Electronics down by 1.62%, Larsen & Toubro down by 1.14% and HDFC Bank down by 0.99% were the top losers.

Meanwhile, credit rating agency ICRA has reaffirmed a stable outlook for the Indian IT services industry, forecasting a year-on-year revenue growth of 2-3 per cent in US dollar terms for the fiscal year 2025-26. ICRA's analysis, based on a sample of 15 leading IT companies representing approximately 60 per cent of the industry's revenue, indicates that the sector will experience modest revenue growth of 2-3 per cent in FY2026, slightly lower than the 2.9 per cent growth recorded in FY25.

The rating agency said the subdued earnings momentum is largely attributed to uncertainties stemming from the US tariff imposition, which is expected to weigh on IT budget allocations in key markets. Notwithstanding some recovery in operating income rise in recent quarters, the Indian IT services industry is unlikely to witness any material uptick in earnings momentum in FY2026 owing to the uncertainties arising due to US tariff imposition. The US and Europe continue to dominate the Indian IT services revenue landscape, accounting for 80-90 per cent of total industry revenues. Growth in these regions was moderate throughout FY25, with the final quarter witnessing a slight decline. The outlook for Q1 FY26 remains cautious, as the tariff-related uncertainties in the US are anticipated to restrain spending on IT services, thereby impacting industry performance.

It said hiring is projected to remain low until there is a clearer improvement in demand. However, as the sector adapts to rapid technological advancements, particularly in artificial intelligence (AI) and generative AI (GenAI), the need for skilled professionals is expected to become a critical factor influencing future hiring decisions. Subsequent quarters of FY2026 may see hiring aligned more closely with sectoral growth and technology adoption trends.

ICRA also highlighted the potential benefits of the India-UK Free Trade Agreement (FTA) for the Indian IT services industry. A key provision exempting social security contributions for three years for UK-based temporary Indian employees and their employers is expected to enhance workforce mobility between the two countries. While the financial impact of this measure may be modest, it is seen as a positive step to facilitate talent movement and strengthen business ties.

The CNX Nifty is currently trading at 25495.00, down by 46.80 points or 0.18% after trading in a range of 25463.40 and 25608.10. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were JSW Steel up by 2.99%, Tata Steel up by 2.42%, Ultratech Cement up by 1.88%, Hindalco up by 1.29% and Tata Motors up by 0.91%. On the flip side, Shriram Finance down by 2.17%, Bajaj Finserv down by 1.98%, Indusind Bank down by 1.89%, Bajaj Finance down by 1.88% and Bharat Electronics down by 1.69% were the top losers.

Asian markets were trading mixed; Nikkei 225 slipped 223.85 points or 0.56% to 39,762.48, Jakarta Composite plunged 64.91 points or 0.94% to 6,850.45, KOSPI dropped 14.59 points or 0.47% to 3,075.06 and Shanghai Composite was down by 3.43 points or 0.1% to 3,454.32. On the flip side, Straits Times rose 17.94 points or 0.45% to 4,007.70, Taiwan Weighted added 24.02 points or 0.11% to 22,577.74 and Hang Seng was up by 192.85 points or 0.8% to 24,265.13.
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