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Sensex, Nifty trade flat with negative bias amid uncertainty over trade deals
Jul-04-2025

Indian equity benchmarks started the Friday’s trading session in green terrain following overnight gains on Wall Street as a stronger-than-expected U.S. jobs report helped ease investor concerns about a potential economic slowdown. But markets were struggling for direction amid weakness in Asian counterparts as traders continued to be cautious amid ongoing uncertainty over trade deals between the U.S. and its trade partner countries as well as the threat of heavy tariffs. At this point of trade, Sensex and Nifty are trading flat with negative bias amid selling in Metal, IT and Bankex stocks. Foreign fund outflows also dented domestic sentiments. Foreign institutional investors (FIIs) stayed net sellers in the cash segment for the fourth session in a row. On July 3 alone, they sold Indian equities worth Rs 13,154.15 crore, while their purchases stood at Rs 11,672.96 crore, resulting in a net outflow of Rs 1,481 crore. 

Besides, investors assess the market regulator’s move to bar US trading company Jane Street from the local securities market over alleged manipulation. SEBI bars Jane Street from Indian securities market for alleged manipulation, impounds Rs 4,840 crore unlawful gains.

The BSE Sensex is currently trading at 83173.57, down by 65.90 points or 0.08% after trading in a range of 83102.55 and 83441.95. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.30%, while Small cap index was up by 0.22%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.74%, Realty up by 0.73%, Industrials up by 0.49%, PSU up by 0.25% and FMCG up by 0.17%, while Metal down by 0.31%, IT down by 0.15%, Bankex down by 0.13%, TECK down by 0.11% and Consumer discretionary down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 3.21%, Bajaj Finserv up by 2.16%, Bharat Electronics up by 1.16%, Eternal up by 0.79% and Hindustan Unilever up by 0.44%. On the flip side, Trent down by 7.38%, Tech Mahindra down by 1.49%, Tata Steel down by 1.42%, Maruti Suzuki down by 0.71% and Power Grid down by 0.56% were the top losers.

Meanwhile, expressing optimism over India’s growth prospects, the newly appointed Confederation of Indian Industry (CII) President Rajiv Memani has said that the country’s economy is likely to grow 6.4-6.7 per cent during the current financial year (FY26) driven by strong domestic demand, even as geopolitical uncertainty poses downside risks. He made a strong case for simple three-tiered GST rate structure, with essential items attracting 5 per cent, luxury and sin goods at 28 per cent, and the remaining items in the 12-18 per cent bracket. Currently, goods and services tax (GST) is a four-tier tax structure with slabs at 5, 12, 18 and 28 per cent. Luxury and demerit goods are taxed at the highest bracket of 28 per cent, while packed food and essential items are in the lowest 5 per cent slab.

On India's Gross Domestic Product (GDP) growth, he said factors, including a good monsoon forecast, and enhanced liquidity emanating from the Reserve Bank's cash reserve ratio (CRR) cut, and interest rate reduction will support the country's economic growth. Observing that there are some obvious risks, he said ‘A lot of these relate to external trade risk. I think a lot of them have been factored in, and also there are some upside. So hopefully they should get balanced out... From a CII standpoint, we're looking at 6.4-6.7 per cent growth’. He said risks to growth are evenly balanced, and ‘geopolitical uncertainty’ poses downside risks whereas ‘strong domestic demand’ is an upside.

Regarding the goods and services tax (GST), he emphasised on the need for rate rationalisation. Under GST 2.0, he said ‘we have called for rate rationalisation, especially on products that are consumed by lower income segments. Several products taxed at 28 per cent, including cement, should also be reduced... we believe this will boost economic activity’. He also batted for procedural simplification of GST framework and advocated for the need to build a national consensus on inclusion petroleum, electricity, real estate and potable alcohol in GST.

The CNX Nifty is currently trading at 25394.40, down by 10.90 points or 0.04% after trading in a range of 25370.55 and 25458.65. There were 16 stocks advancing against 33 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Bajaj Finance up by 2.98%, Bajaj Finserv up by 2.37%, Bharat Electronics up by 1.27%, Eternal up by 0.79% and Wipro up by 0.75%. On the flip side, Trent down by 7.22%, Tata Steel down by 1.41%, Tech Mahindra down by 1.05%, SBI Life Insurance down by 0.91% and Nestle down by 0.75% were the top losers.

Asian markets are trading mostly in red; Taiwan Weighted slipped 181.63 points or 0.81% to 22,531.34, Hang Seng declined 166.65 points or 0.7% to 23,903.29, KOSPI dropped 46.41 points or 1.51% to 3,069.86, Nikkei 225 lost 40 points or 0.1% to 39,745.90, Jakarta Composite fell 18.13 points or 0.26% to 6,859.92 and Straits Times was down by 12.18 points or 0.3% to 4,007.39, while Shanghai Composite was up by 14.09 points or 0.41% to 3,475.24.
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