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Key gauges end lower on fag-end selling
Jul-03-2025

Indian equity benchmarks cut all of their intra-day gains to close lower for the second consecutive day on Thursday due to last-hour selling in Metal, Realty and Telecom shares. Investors remained watchful of developments surrounding the potential U.S.-India trade agreement, with the 90-day pause nearing its end. 

Some of the important factors in today’s trade: 

India’s services sector hits 10-month high of 60.4 in June: India’s services sector gathered more pace in June to touch a ten-month high, as output and new order intakes rose at the fastest rates since August 2024. The seasonally adjusted HSBC India Services PMI Business Activity Index grew to 60.4 in June from 58.8 in May. 

Rupee rises against US Dollar: Indian rupee pared initial losses and strengthened against the US dollar, following a weak greenback against major crosses overseas and a decline in US treasury yields.

RBI directs banks, other lenders not to levy pre-payment charges on business loans to individuals, MSEs: The Reserve Bank of India (RBI) has directed banks and other lenders not to levy any pre-payment charges on all floating-rate loans and advances, including for business purposes, availed by individuals and micro and small enterprises (MSEs). 

Tyre stocks in focus: Tyre stocks were in focus as Automotive Tyre Manufacturers Association (ATMA) has said that tyre exports from India grew 9 per cent year-on-year to Rs 25,051 crore in FY25 as compared to Rs 23,073 crore in the previous fiscal despite headwinds, including trade policy uncertainties and global supply chain disruptions. 

Global front: European markets were trading mostly in green as investor sentiment was underpinned by the announcement of a trade deal between the United States and Vietnam, and a decision by the Trump administration to ease export restrictions on China for chip design software and ethane. Asian markets ended mostly higher as investors reacted to a U.S.-Vietnam trade deal and awaited the monthly U.S. nonfarm payroll data later in the day for directional cues.

Finally, the BSE Sensex fell 170.22 points or 0.20% to 83,239.47 and the CNX Nifty was down by 48.10 points or 0.19% to 25,405.30.   

The BSE Sensex touched high and low of 83,850.09 and 83,186.74 respectively. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices ended mixed; the BSE Mid cap index fell 0.06%, while Small cap index was up by 0.47%.

The top gaining sectoral indices on the BSE were Healthcare up by 0.74%, Oil & Gas up by 0.45%, Consumer Durables up by 0.43%, Auto up by 0.40% and Energy up by 0.30%, while Metal down by 0.77%, Realty down by 0.61%, Telecom down by 0.55%, Bankex down by 0.48% and Utilities down by 0.48% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 0.98%, Infosys up by 0.51%, Asian Paints up by 0.44%, NTPC up by 0.36% and Hindustan Unilever up by 0.36%. On the flip side, Kotak Mahindra Bank down by 1.91%, Bajaj Finserv down by 1.38%, Bajaj Finance down by 1.30%, Adani Ports &SEZ down by 0.80% and Trent down by 0.76% were the top losers.

Meanwhile, India’s services sector gathered more pace in June to touch a ten-month high, as output and new order intakes rose at the fastest rates since August 2024, aided by another robust expansion in international sales and job creation. Despite slowing to the weakest in three months, the increase in export orders was among the strongest in the series history.  According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index grew to 60.4 in June from 58.8 in May. The HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also surged to 61.0 in June as against 59.3 in May.

The report further noted that expansions in output and new orders remained broad-based during June. Once again, Finance & Insurance topped the growth rankings. For both measures, the slowest expansions were in Real Estate & Business Services. The ongoing expansion of the Indian service sector had a positive impact on recruitment. Employment rose for the thirty-seventh consecutive month in June, with the rate of job growth outpacing its long-run average despite slowing from May's record.

On the inflation front, the rate of input cost inflation across India's service economy eased to a ten-month low in June, and was below its long-run average. Several service providers had maintained sufficient pricing power to pass on higher costs to clients. Despite easing from May, the rate of charge inflation remained above the series trend. Cost pressures were most intense in the Consumer Services category, while the fastest upturn in output charges was noted in the Finance & Insurance segment.

The CNX Nifty traded in a range of 25,587.50 and 25,384.35. There were 17 stocks advancing against 32 stocks declining, while 1 stock remained unchanged on the index.  

The top gainers on Nifty were Dr. Reddy's Lab up by 1.90%, Apollo Hospital up by 1.77%, Hero MotoCorp up by 1.75%, ONGC up by 1.19% and Maruti Suzuki up by 1.01%. On the flip side, SBI Life Insurance down by 2.87%, Kotak Mahindra Bank down by 2.03%, Bajaj Finserv down by 1.40%, JSW Steel down by 1.26% and Grasim Industries down by 1.24% were the top losers.

European markets were trading mostly in green; UK’s FTSE 100 increased 30.32 points or 0.35% to 8,805.01 and Germany’s DAX gained 9.83 points or 0.04% to 23,799.94, while France’s CAC fell 8.2 points or 0.11% to 7,730.22.

Asian markets ended mostly higher on Thursday tracking Wall Street’s gains overnight after US President Donald Trump's announcement of the US-Vietnam trade deal. Meanwhile, investors awaited US non-farm payrolls data that could influence the Federal Reserve's timeline for interest rate cuts. Japanese shares marginally rose, despite ongoing uncertainty over a trade deal with the United States and the threat of heavy tariffs. Seoul shares gained sharply, underpinned by the revision of the shareholder friendly Commercial Act and developments in tariff talks with the United States. Chinese shares ended up after the US Trump administration lifted recent export license requirements for chip design software sales in China. However, Hong Kong shares fell, led by technology shares, on fears over slowing Chinese growth. A private survey showed China's services activity growth hit a nine-month low in June.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,461.15

6.36

0.18

Hang Seng

24,069.94

-151.47

-0.63

Jakarta Composite

6,878.05

-3.20

-0.05

KLSE Composite

1,548.99

-1.22

-0.08

Nikkei 225

39,785.90

23.42

0.06

Straits Times

4,019.57

8.80

0.22

KOSPI Composite

3,116.27

41.21

1.32

Taiwan Weighted

22,712.97

135.23

0.60
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