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Key gauges continue to trade flat in morning deals
Jul-04-2025

Indian equity benchmarks continued to trade flat in morning deals, as investors stayed on the sidelines ahead of India's upcoming trade deal with the US. Traders took a note of think tank GTRI stated that China's export curbs on critical minerals crucial for India's electronics sectors are no longer mere warnings but a wake-up call for New Delhi, underscoring the need for urgent measures like reverse-engineering of low- to mid-tech imports to cut overreliance on Beijing. However, traders took some support as 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. On the global front, Asian markets are trading mostly in red as U.S. President Donald Trump warned countries to strike deals before the deadline or face tariffs. 

The BSE Sensex is currently trading at 83261.06, up by 21.59 points or 0.03% after trading in a range of 83102.55 and 83441.95. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.48%, while Small cap index was up by 0.34%.

The top gaining sectoral indices on the BSE were Realty up by 1.00%, Capital Goods up by 0.66%, Healthcare up by 0.58%, Industrials up by 0.54% and PSU up by 0.39%, while Metal down by 0.17%, Auto down by 0.12% and Consumer discretionary down by 0.03% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 2.66%, Bajaj Finserv up by 1.37%, Eternal up by 0.90%, Bharat Electronics up by 0.86% and Hindustan Unilever up by 0.51%. On the flip side, Trent down by 7.16%, Tata Steel down by 1.27%, Tech Mahindra down by 1.15%, Maruti Suzuki down by 1.01% and Mahindra & Mahindra down by 0.38% were the top losers.

Meanwhile, Moody's Ratings in its outlook on Asia Pacific sovereigns has said that India may be subject to lower tariffs than many countries in the Asia Pacific (APAC), which could help the economy attract further investment and become a global manufacturing base. It said many export-reliant APAC economies were hit with very high US tariffs in April. It stated while negotiations will likely lead to some reduction in tariffs and other trade barriers on a bilateral basis, policy uncertainty is challenging investment decisions and disrupting trade. 

Uncertainty about trade policy and a potential overhaul of global trade have raised cyclical and possibly structural credit risks in APAC, it said, adding that economies like Vietnam and Cambodia, which benefited from a diversification of investment and manufacturing out of China and now face high US tariffs, are particularly at risk. It mentioned ‘In contrast to countries like Cambodia and Vietnam, India has the potential to emerge as a beneficiary of a tariff-driven shift in investment and trade flows. India may be subject to lower tariffs than many in APAC, which could help the economy attract further investment flows and support its development as a global manufacturing base.’

Further, it said the signing of a free trade agreement with the UK in May and ongoing efforts to establish the same with the EU will further support such development. However, the US goal to reshore select manufacturing segments could challenge the extent to which India benefits. On April 2, the US imposed an additional 26 per cent reciprocal tariff on Indian goods but suspended it for 90 days. However, the 10 per cent baseline tariff imposed by America remains in place. India is seeking full exemption from the additional 26 per cent levy. Currently, officials of India and the US are negotiating a proposed interim trade agreement between the two countries. 

While India is seeking greater market access for its labour-intensive goods, the US wants duty concessions for its agricultural products. These talks are important as the suspension of US reciprocal tariffs is ending on July 9. The two sides are looking at finalising the talks before that. Moody's also said that potential shifts in investment and trade flows stemming from tariffs will take years to materialise, and it is unlikely that multinational companies will make drastic investment changes while there is still significant uncertainty about the magnitude of tariffs and whether they will persist.

The CNX Nifty is currently trading at 25410.85, up by 5.55 points or 0.02% after trading in a range of 25370.55 and 25458.65. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 2.47%, Bajaj Finserv up by 1.23%, Shriram Finance up by 0.96%, Eternal up by 0.90% and Bharat Electronics up by 0.83%. On the flip side, Trent down by 7.28%, Tata Steel down by 1.24%, Tech Mahindra down by 1.17%, Maruti Suzuki down by 1.05% and SBI Life Insurance down by 0.93% were the top losers.

Asian markets are trading mostly in red; Taiwan Weighted lost 151.09 points or 0.67% to 22,561.88, Hang Seng declined 148.13 points or 0.62% to 23,921.81, KOSPI dropped 45.13 points or 1.45% to 3,071.14, Straits Times fell 12.09 points or 0.3% to 4,007.48 and Jakarta Composite plunged 14.19 points or 0.21% to 6,863.86.

On the flip side, Shanghai Composite strengthened 14.09 points or 0.41% to 3,475.24 and Nikkei 225 surged 45.17 points or 0.11% to 39,831.07.
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