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Markets trade above neutral lines after cautious start amid easing retail inflation
Jul-15-2025

Indian equity benchmarks made a cautious start on Tuesday but managed to trade above neutral lines in early deals as easing domestic retail inflation could provide the Reserve Bank of India's monetary policy committee (MPC) room to maintain status quo in repo rate in its upcoming reviews. The government data showed that India's consumer price inflation eased further in June to the lowest level in more than six years, driven by the renewed fall in food prices. Consumer price inflation eased more-than-expected to 2.10 percent in June from 2.82 percent in May. Besides, investors remained hopeful after the Indian commerce ministry team reached Washington for another round of talks with the US on the proposed bilateral trade agreement. In stock specific developments, HCL Technologies fell after posting weaker-than-expected Q1 earnings. However, Sun Pharma gained after it has reached a settlement with U.S.-based Incyte Corporation regarding Leqselvi, a drug used for severe hair loss.

On the global front, Asian markets are trading mostly higher, following the broadly positive cues from Wall Street overnight, as traders are hopeful of an end to the ongoing trade war at least by August 1 as confirmed by U.S. President Donald Trump recently. Traders view Trump's tariff threats as negotiation tactics. Some support also came after China’s second-quarter economic growth topped street’s forecast. According to China’s National Bureau of Statistics, the country’s gross domestic product expanded by 5.2% in the second quarter.

The BSE Sensex is currently trading at 82327.40, up by 73.94 points or 0.09% after trading in a range of 82221.74 and 82462.38. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.33%, while Small cap index was up by 0.62%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.43%, Capital Goods up by 0.42%, Realty up by 0.42%, Auto up by 0.40% and Energy up by 0.39%, while Metal down by 0.41%, Utilities down by 0.15%, IT down by 0.02% and Power down by 0.02% were the top losing indices on BSE.

The top gainers on the Sensex were Bharat Electronics up by 0.60%, Bharti Airtel up by 0.55%, Kotak Mahindra Bank up by 0.53%, Mahindra & Mahindra up by 0.49% and Sun Pharma up by 0.46%. On the flip side, HCL Technologies down by 3.17%, Tata Steel down by 0.81%, Ultratech Cement down by 0.52%, Eternal down by 0.52% and Power Grid down by 0.29% were the top losers.

Meanwhile, NITI Aayog in its third edition of ‘Trade Watch Quarterly’ has said that Indian exports to the US will become more competitive following imposition of higher tariffs by the Trump administration on countries, including China, Canada, and Mexico. It added that there will be significant opportunities for India in the US markets both in terms of the number of products and volume of the US market. It noted that India is expected to gain competitiveness in 22 out of the top 30 categories (HS 2 level), representing a market size of $2,285.2 billion. It further explained that China, Canada, and Mexico are the leading exporters to the US in these categories, therefore higher tariffs on these countries at 30 per cent, 35 per cent, and 25 per cent, respectively, will enhance India’s competitiveness.

It said India’s competitiveness will remain unchanged in 6 out of 30 categories, amounting for 32.8 per cent exports to the US and 26 per cent of the US total imports, amounting to $26.5 billion. While for six product categories at HS 2 level, India faces a higher average tariff (between 1-3 per cent) which can be negotiated with the US, the Aayog said ‘In 78 products, accounting for 52 per cent of India’s exports and 26 per cent share in total US imports, India is expected to gain competitiveness’. For 17 products (accounting for 28 per cent of India’s export to the US) out of the top 100 products at the HS-4 level, it said India’s competitiveness remains unchanged due to no change in tariff differential. It also pointed out that ‘India stands to gain in sectors with high tariff gaps vs China, Canada and Mexico - minerals and fuels, apparel, electronics, plastics, furniture, and seafoods in a $1,265-billion market’. 

Meanwhile, an Indian commerce ministry team has reached Washington for another round of talks on the proposed bilateral trade agreement (BTA). The four-day talks will end on Thursday. India is seeking the removal of this additional tariff (26 per cent). It is also seeking the easing of tariffs on steel and aluminium (50 per cent) and the auto (25 per cent) sectors. Against these, India has reserved its right under the WTO (World Trade Organization) norms to impose retaliatory duties. India’s merchandise exports to the US rose 21.78 per cent to $17.25 billion in April-May this fiscal year, while imports rose 25.8 per cent to $8.87 billion.

The CNX Nifty is currently trading at 25106.35, up by 24.05 points or 0.10% after trading in a range of 25088.45 and 25155.80. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Hero MotoCorp up by 1.44%, Shriram Finance up by 1.05%, Eicher Motors up by 0.80%, Bharat Electronics up by 0.66% and Mahindra & Mahindra up by 0.61%. On the flip side, HCL Technologies down by 3.31%, Cipla down by 0.84%, Tata Steel down by 0.77%, JSW Steel down by 0.60% and Dr. Reddy's Lab down by 0.58% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted jumped 182.01 points or 0.8% to 22,796.98, Hang Seng advanced 40.8 points or 0.17% to 24,244.12, Jakarta Composite gained 9.48 points or 0.13% to 7,106.63, Straits Times rose 4.63 points or 0.11% to 4,113.84 and Nikkei 225 was up by 3.92 points or 0.01% to 39,463.54. On the other hand, Shanghai Composite weakened 32.77 points or 0.94% to 3,486.88 and KOSPI was down by 1.86 points or 0.06% to 3,200.17.
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