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Bourses continue to trade in red in early afternoon session
Aug-01-2025

Indian markets continued to trade in red during early afternoon session following weakness in other Asian markets. Traders were cautious ahead of RBI interest rate decision, which is due in next week. Investors ignored the report that India's manufacturing sector continued to strengthen in the month of July, aided by faster increases in new orders, output and stocks of purchases. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) surged to 59.1 in July from 58.4 in June. Sector wise, sugar sector remained in limelight as Indian Sugar and Bio-energy Manufacturers Association (ISMA) in its latest report stated that India's sugar production is likely to rise 18 per cent to 34.90 million tonnes in the 2025-26 season starting in October, with a scope for exports of 2 million tonnes.  

On the global front, Asian markets were trading mostly in red as China's factory activity contracted in July as softening new orders forced manufacturers to scale back production and staffing. The manufacturing Purchasing Managers' Index fell to 49.5 in July from 50.4 in June. A score below 50.0 indicates contraction.

The BSE Sensex is currently trading at 80932.51, down by 253.07 points or 0.31% after trading in a range of 80841.28 and 81317.51. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.59%, while Small cap index was down by 0.45%.

The few gaining sectoral indices on the BSE were FMCG up by 0.67%, Consumer Durables up by 0.23%, Capital Goods up by 0.22% and Power was up by 0.08%, while Healthcare down by 1.88%, Oil & Gas down by 1.48%, IT down by 1.18%, Telecom down by 1.13% and TECK was down by 0.97% were the top losing indices on BSE.

The top gainers on the Sensex were Trent up by 2.19%, Asian Paints up by 2.13%, Hindustan Unilever up by 1.38%, ITC up by 1.09% and Reliance Industries up by 0.78%. On the flip side, Sun Pharma down by 3.90%, Tata Steel down by 2.25%, Tata Motors down by 2.15%, Maruti Suzuki down by 1.90% and Infosys down by 1.79% were the top losers.

Meanwhile, Reserve Bank of India (RBI) in its latest data has showed that the bank credit growth to industry slowed to 5.5 per cent in the fortnight ended June 26, 2025 as compared to 7.7 per cent in the year-ago period. On a year-on-year (y-o-y) basis, non-food bank credit grew by 10.2 per cent as of the fortnight ended June 27, 2025, against 13.8 per cent during the corresponding period of the previous year. The RBI has released the data on sectoral deployment of bank credit for June 2025 collected from 41 select scheduled commercial banks (SCBs), accounting for about 95 per cent of the total non-food credit by all banks. 

RBI stated that credit to micro, small, and medium industries continued to grow steadily. Among major industries, outstanding credit to all engineering, construction and textiles recorded an accelerated y-o-y growth. Credit to agriculture and allied activities registered a y-o-y growth of 6.8 per cent from 17.4 per cent a year ago.

The central bank further said advances to the services sector moderated to 9.6 per cent y-o-y (15.1 per cent in the corresponding fortnight of the previous year), primarily due to decelerated growth in credit to Non-Banking Financial Companies (NBFCs). Credit growth to the computer software and professional services segment remained robust. It also said that credit to the personal loans segment registered a decelerated y-o-y growth of 14.7 per cent compared to 16.6 per cent a year ago, largely due to a moderation in growth of other personal loans, vehicle loans and credit card outstanding.

The CNX Nifty is currently trading at 24664.75, down by 103.60 points or 0.42% after trading in a range of 24644.05 and 24784.15. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Trent up by 2.55%, Asian Paints up by 2.17%, Eicher Motors up by 1.39%, Hindustan Unilever up by 1.37% and ITC up by 0.98%. On the flip side, Sun Pharma down by 3.95%, Dr. Reddy's Lab down by 3.92%, Cipla down by 3.19%, ONGC down by 2.54% and Tata Steel down by 2.43% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 239.33 points or 0.97 to 24,534.00, Nikkei 225 slipped 224.82 points or 0.55 to 40,845.00, KOSPI dropped 126.03 points or 4.04 to 3,119.41, Taiwan Weighted lost 108.14 points or 0.46 to 23,434.38, Straits Times fell 14.92 points or 0.36 to 4,158.85 and Shanghai Composite was down by 13.26 points or 0.37 to 3,559.95. On the flip side, Jakarta Composite was up by 87.33 points or 1.15 to 7,571.67.
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