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Key gauges end lower on Tuesday
Sep-02-2025

Indian equity benchmarks ended lower on Tuesday due to last-hour profit-taking in banking and Telecom shares amid caution ahead of the GST Council meeting.  The GST Council is meeting in New Delhi for two days beginning September 3 to discuss the proposed pruning of rates.

Some of the important factors in trade:

India, UAE discuss ways to increase trade in pharma, healthcare products: The commerce ministry said that India and the UAE have discussed ways to enhance and facilitate trade in pharmaceuticals and healthcare products with an aim to boost economic ties.

Rupee hits record low vs US Dollar: Indian rupee declined at an all-time low against the US dollar, as Indo-US trade deal uncertainty and weak domestic equity markets pressurised the local unit. 

India-China relations normalizing: Commerce and Industry Minister Piyush Goyal said India-China relations are gradually moving towards normalcy, noting that as border issues get resolved, easing of tensions is a natural consequence.

India Inc investment key to 8% GDP growth: Former Reserve Bank Deputy Governor Michael Patra termed India Inc as a ‘missing actor’ not investing enough, saying if corporates start investing sufficiently, GDP growth can accelerate to over 8 per cent.

Global front: European markets were trading lower after Eurostat data showed Eurozone inflation rose to 2.1 percent last month, climbing above the European Central Bank's 2 percent target for the first time since April driven by higher prices for food, alcohol and tobacco. Asian markets settled mostly higher as investors awaited cues from upcoming U.S. jobs and inflation data along with the Federal Reserve's rate decision.

Finally, the BSE Sensex fell 206.61 points or 0.26% to 80,157.88 and the CNX Nifty was down by 45.45 points or 0.18% to 24,579.60.    

The BSE Sensex touched high and low of 80,761.14 and 80,008.50 respectively. There were 14 stocks advancing against 16 stocks declining on the index.  

The broader indices ended in green; the BSE Mid cap index rose 0.27%, while Small cap index was up by 0.64%.

The top gaining sectoral indices on the BSE were Power up by 1.62%, Utilities up by 1.47%, FMCG up by 1.12%, PSU up by 0.95% and Metal up by 0.90%, while Bankex down by 0.68%, Telecom down by 0.59%, TECK down by 0.28%, Auto down by 0.23% and Consumer Durables down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid Corporation up by 2.43%, NTPC up by 1.60%, Tata Steel up by 1.44%, Hindustan Unilever up by 1.09% and Reliance Industries up by 0.92%. On the flip side, Mahindra & Mahindra down by 2.45%, Asian Paints down by 1.33%, Kotak Mahindra Bank down by 1.28%, ICICI Bank down by 1.15% and Tata Motors down by 0.83% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its balance of payments (BoP) data has showed that India’s current account deficit (CAD) narrowed to 0.2 per cent of Gross Domestic Prodcut (GDP), or $2.4 billion, during the April-June period of 2025-26 compared to 0.9 per cent of the GDP, or $8.6 billion, in the year-ago period, helped by services exports. In the preceding January-March quarter, the current account was in a surplus of $13.5 billion (1.3 per cent of GDP). Current account reflects a country’s overseas earnings and expenditures.

Merchandise trade deficit at $68.5 billion in the first quarter (Q1) of 2025-26 was higher than $63.8 billion in Q1, 2024-25. However, net services receipts increased to $47.9 billion in Q1, 2025-26 from $39.7 billion a year ago. Services exports have risen on a year-on-year basis in major categories such as business services and computer services. Similarly, personal transfer receipts, mainly representing remittances by Indians employed overseas, rose to $33.2 billion in Q1, 2025-26 from $28.6 billion in Q1, 2024-25. In the financial account, foreign direct investment (FDI) recorded a net inflow of $5.7 billion in Q1, 2025-26 as compared to a net inflow of $6.2 billion a year ago. 

Further, foreign portfolio investment (FPI) recorded a net inflow of $1.6 billion in Q1, 2025-26 as compared to a net inflow of $0.9 billion in Q1, 2024-25. Inflows under external commercial borrowings (ECBs) to India amounted to $3.7 billion in Q1, 2025-26, as compared to $1.6 billion in the corresponding period a year ago. NRI deposits recorded a lower net inflow of $3.6 billion during the quarter under review as against $4 billion in Q1, 2024-25. The net outgo on the primary income account, primarily reflecting payments of investment income, increased to $12.8 billion in Q1, 2025-26 from $10.9 billion in Q1, 2024-25.

The CNX Nifty touched high and low of 24,756.10 and 24,522.35 respectively. There were 26 stocks advancing against 24 stocks declining on the index.   

The top gainers on Nifty were Tata Consumer Product up by 2.77%, Nestle up by 2.22%, Power Grid Corporation up by 2.20%, NTPC up by 1.80% and Tata Steel up by 1.46%. On the flip side, Dr. Reddy's Lab down by 2.34%, Mahindra & Mahindra down by 2.33%, ICICI Bank down by 1.42%, Asian Paints down by 1.25% and Cipla down by 1.21% were the top losers. 

European markets were trading lower; UK’s FTSE 100 decreased 42.52 points or 0.46% to 9,153.82, France’s CAC fell 14.4 points or 0.19% to 7,693.50 and Germany’s DAX lost 363.03 points or 1.51% to 23,674.30.

Asian markets settled mostly higher on Tuesday despite technology shares succumbed to profit taking in China and Hong Kong after a recent powerful rally on AI optimism. Globally, all eyes are on upcoming US jobs and inflation data along with the Federal Reserve's rate decision for further cues. Chinese shares declined as the Country prepares for its military parade, which will take place on Wednesday in Beijing. However, Japanese shares rose, snapped a two-day losing streak amid mounting political uncertainty and increased bets for Bank of Japan rate hikes.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,858.13

-17.40

-0.45

Hang Seng

25,496.55

-120.87

-0.47

Jakarta Composite

7,801.58

65.51

0.84

KLSE Composite

1,576.70

1.58

0.10

Nikkei 225

42,310.49

121.7

0.29

Straits Times

4,298.51

22.44

0.52

KOSPI Composite

3,172.35

29.42

0.93

Taiwan Weighted

24,016.78

-54.95

-0.23
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