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Bourses extend losses in early afternoon session
Jul-04-2025

Indian markets extended their losses in early afternoon session following negative cues from other Asian markets. Investors were cautious about India-US trade deal. Traders overlooked the newly appointed Confederation of Indian Industry (CII) President Rajiv Memani’s statement 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. Traders took a note of report that think tank Global Trade Research Initiative (GTRI) has raised concerns over China's export curbs on critical minerals which are crucial for India's electronics sectors and emphasize the need for urgent measures like reverse-engineering of low- to mid-tech imports to cut overreliance on Beijing. On the global front, Asian markets were trading mostly in red ahead of President Donald Trump's July 9 deadline to impose reciprocal tariffs. U.S. President Donald Trump warned countries to strike deals before the deadline or face tariffs.

The BSE Sensex is currently trading at 83079.02, down by 160.45 points or 0.19% after trading in a range of 83015.83 and 83441.95. There were 12 stocks advancing against 18 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 0.03%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.73%, Healthcare up by 0.51%, Energy up by 0.50%, IT up by 0.22% and PSU was up by 0.21%, while Metal down by 0.82%, Basic Materials down by 0.50%, Consumer Disc down by 0.50%, Auto down by 0.44% and Telecom was down by 0.43% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 1.57%, Eternal up by 0.73%, Hindustan Unilever up by 0.60%, Infosys up by 0.58% and Bajaj Finserv up by 0.58%. On the flip side, Trent down by 9.64%, Tata Steel down by 1.84%, Maruti Suzuki down by 0.99%, Mahindra & Mahindra down by 0.93% and Tech Mahindra down by 0.89% were the top losers.

Meanwhile, think tank Global Trade Research Initiative (GTRI) has raised concerns over China's export curbs on critical minerals which are crucial for India's electronics sectors and emphasize the need for urgent measures like reverse-engineering of low- to mid-tech imports to cut overreliance on Beijing. It pointed out that China has stepped up its use of economic leverage to constrain India's industrial ambitions in series of calculated moves. It added that over the past year, as the geopolitical tensions and trade realignments intensified, Beijing has systematically restricted exports of critical raw materials and engineering support, sending a clear warning to New Delhi.

Further highlighting China’s past mischievous actions, GTRI said that since mid-2023, China has imposed curbs on exports of critical minerals such as gallium and germanium -- essential for India's electronics, EV, and defence industries. Moreover, the restrictions were extended to graphite in late 2024 dealing a direct blow to India's clean energy and battery manufacturing sectors. GTRI warned that Beijing has cloaked these actions in strategic ambiguity, while tightening its grip on supply chains that India is still dependent on. Besides, recently in June 2025, Chinese battery giant CATL reportedly directed Foxconn to withdraw all Chinese engineers from its manufacturing unit near Chennai. The move disrupted timelines and coordination at a crucial time for India's electronics and EV supply chain buildout.

In FY25, India's imports from China surged, while exports declined sharply leading to a widening trade deceit of $100 billion. On Chinese import dependency, GTRI added that, Chinese firms now supply over 80 per cent of India's needs in laptops, solar panels, antibiotics, viscose yarn, and lithium-ion batteries, deepening strategic vulnerabilities. Meanwhile, in order to tackle overreliance on a geopolitical rival and build economic resilience, it has emphasized the necessity to do reverse-engineering of low- to mid-tech imports, domestic production incentives, and long-term investment in deep-tech manufacturing. It has suggested setting up of Sector-specific industrial labs to deconstruct commonly imported goods and develop standardised, open-access blueprints and sharing those designs with Indian MSMEs for niche production and with larger firms for mass manufacturing. It added that the model combining public R&D and private production, would enable rapid substitution of many high-volume imports. It has also suggested that the country should also create a Localize-100 tracker to monitor progress on localising the top 100 low- and mid-tech imports from China.

The CNX Nifty is currently trading at 25352.60, down by 52.70 points or 0.21% after trading in a range of 25331.65 and 25458.65. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 1.64%, Hero MotoCorp up by 1.03%, Wipro up by 0.82%, Eternal up by 0.65% and Bajaj Auto up by 0.63%. On the flip side, Trent down by 9.71%, Tata Steel down by 1.87%, Eicher Motors down by 1.47%, SBI Life down by 1.32% and Indusind Bank down by 1.28% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted lost 165.47 points or 0.73% to 22,547.50, Hang Seng declined 115.89 points or 0.48% to 23,954.05, KOSPI dropped 62.37 points or 2.04% to 3,053.90, Jakarta Composite plunged 14.19 points or 0.21% to 6,863.86 and Straits Times was down by 10.07 points or 0.25% to 4,009.50. On the flip side, Nikkei 225 surged 18.51 points or 0.05% to 39,804.41 and Shanghai Composite was up by 20.34 points or 0.58% to 3,481.49.
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