Indian Benchmark Indices End Lower for Second Straight Session; Services PMI Hits 10-Month High

The Nifty 50 declined by 48.10 points or 0.19 per cent to close at 25,405.30, while the Sensex shed 170.22 points or 0.20 per cent, ending at 83,239.47.

Market Update at 4:00 PM: On Thursday, July 3, Indian benchmark indices ended in negative territory for the second consecutive session as traders booked profits ahead of an anticipated trade agreement between India and the United States. The Nifty 50 declined by 48.10 points or 0.19 per cent to close at 25,405.30, while the Sensex shed 170.22 points or 0.20 per cent, ending at 83,239.47. The drag came primarily from financial and telecom heavyweights, with Kotak Mahindra Bank and Bharti Airtel among the key contributors to the losses.

Meanwhile, economic data offered a positive counterbalance to market sentiment. India’s services sector activity showed strong momentum in June, with the HSBC India Services Purchasing Managers' Index (PMI) climbing to 60.4, the highest level seen in 10 months. The composite PMI, which includes both manufacturing and services data, rose to 61.0, marking the strongest private sector expansion in 14 months. This improvement was fueled by a rise in new orders, increased international demand, job creation, and a moderation in inflationary pressures on both input and output costs.

On the sectoral front, performance was mixed, with 5 out of the 11 major sectoral indices ending in the green. The broader market, however, remained resilient. The Nifty Midcap 100 inched up by 0.03 per cent, and the Nifty Smallcap 100 rose by 0.26 per cent, reflecting continued investor interest in mid- and Small-Cap segments despite overall weakness.

In terms of stock-specific developments, Apollo Hospitals hit a record high of Rs 7,600.50 following news of a potential value unlocking through its pharmacy business demerger. On the downside, Tata Power dropped 2 per cent after an arbitration decision required it to pay USD 490 million to Kleros. Avenue Supermarts also slipped 4 per cent after its Q1 FY26 operational update failed to impress the street.

Among sectoral indices, the Nifty Media Index was the top performer, gaining 1.46 per cent. Stocks such as Nazara Technologies and Zee Entertainment rallied more than 2 per cent each, rebounding from their 20-day exponential moving averages. On the other hand, the Nifty PSU Bank Index declined by 0.92 per cent, reflecting pressure in the public sector banking space.

Key contributors to the Nifty’s gain included Infosys, which added 8.42 points, Maruti Suzuki with 4.85 points, and Apollo Hospitals with 3.55 points. However, this was outweighed by losses from Kotak Bank, Bharti Airtel, and TCS, which collectively shaved off a significant portion from the index.

Market breadth remained neutral on the NSE. Out of 3,025 stocks traded, 1,450 advanced, 1,472 declined, and 103 closed unchanged. Additionally, 69 stocks touched their 52-week highs, while 44 hit their 52-week lows. There were 98 stocks locked in upper circuits and 52 in lower circuits, indicating mixed sentiment across the broader market.

Market Update at 12:15 PM: Indian benchmark indices, the Sensex and Nifty, traded higher as investors tracked developments around a potential trade agreement between the US and India. This move aims to avert the impact of US President Donald Trump's proposed tariffs set to take effect from July 9.

The BSE Sensex rose by 188 points or 0.23 per cent to reach 83,596, while the Nifty50 climbed 52 points, or 0.2 per cent, to hover near 25,505.

On the stock-specific front, gains were seen in Asian Paints, M&M, Maruti Suzuki, and Eternal, while losses were recorded in Bajaj Finance, Bajaj Finserv, Trent, Kotak Mahindra Bank, and Titan.

In the broader market space, the Nifty MidCap index inched up 0.13 per cent and the SmallCap index advanced 0.22 per cent.

Sector-wise, the Nifty Auto index led the pack with a 0.68 per cent gain, followed by modest advances in the FMCG and IT indices. On the flip side, the Nifty PSU Bank index was under pressure, slipping 0.4 per cent.

Market Update at 9:45 AM: Indian stock markets opened on a positive note on Thursday, reflecting cautious optimism amid speculation that India and the U.S. may soon finalise a trade agreement to avert proposed tariffs by President Donald Trump.

In early trade, the BSE Sensex was up by 203 points (0.24 per cent) at 83,612, while the Nifty50 rose 55 points (0.22 per cent) to hover around 25,509.

On the Sensex, leading gainers included Asian Paints, Eternal, Tata Steel, M&M, Infosys, ICICI Bank, Tech Mahindra, and Maruti Suzuki. In contrast, Bajaj Finance, Bajaj Finserv, Kotak Mahindra Bank, Trent, BEL, and Titan were among the top laggards.

Midcap and smallcap stocks also saw buying interest, with the Nifty MidCap and SmallCap indices inching up by 0.3 per cent each.

Sector-wise, Nifty IT and Nifty Metal led the gains with 0.6 per cent advances each, while the Nifty PSU Bank index was the biggest sectoral drag, falling 0.54 per cent.

Pre-Market Update at 7:45 AM: Domestic equity markets are expected to begin Thursday, July 3, on a stronger note, drawing support from upbeat global cues and renewed optimism over a potential trade understanding between India and the United States.

At 7:21 AM, the GIFT Nifty was trading around 25,572 — up 41 points from the previous session — indicating a likely positive opening for the Nifty 50.

Asian equities showed mixed performance, while U.S. indices closed mostly in the green. The Nasdaq and S&P 500 scaled fresh all-time highs, reflecting positive sentiment in global markets.

Domestic Institutional Investors (DIIs) continued their buying streak for a third straight session, whereas Foreign Institutional Investors (FIIs) remained net sellers. On July 2, FIIs offloaded shares worth Rs 1,561.62 crore, while DIIs made purchases totalling Rs 3,036.68 crore.

Indian benchmarks closed marginally lower on Wednesday as participants chose to book profits, particularly in financial stocks, even as hopes grew around a bilateral trade deal with the U.S. Market sentiment remained cautious ahead of final details of the agreement, which may avert a proposed 26 per cent retaliatory duty on Indian exports to the U.S. The Sensex shed 287.60 points to close at 83,409.69, while the Nifty 50 declined by 88.40 points to settle at 25,453.40.

Asian shares were largely steady in early trade as investors awaited U.S. jobs data. The rally on Wall Street — buoyed by President Trump’s announcement of a trade pact with Vietnam — lent some strength to regional sentiment.

U.S. equities ended higher on Wednesday, led by gains in technology stocks and optimism around the newly announced U.S.-Vietnam trade agreement. The S&P 500 rose 29.41 points to finish at 6,227.42, while the Nasdaq gained 190.24 points to close at 20,393.13 — both marking record highs. However, the Dow slipped slightly by 10.52 points to end at 44,484.42. On the NYSE, 358 stocks touched new 52-week highs compared to 41 new lows.

President Trump confirmed a trade pact with Vietnam, slashing tariffs on Vietnamese imports to 20 per cent from a proposed 46 per cent. In exchange, U.S. exports will face no import duties when entering Vietnam.

According to ADP, the U.S. private sector saw an unexpected drop of 33,000 jobs in June — its first decline in over two years. This contrasts with a revised gain of 29,000 jobs in May, and it missed forecasts that had expected a 95,000 increase.

Gold Prices softened in early Asian trade as optimism over global trade deals reduced demand for safe-haven assets. Spot gold held steady at USD 3,344.99 per ounce.

Crude Oil prices moved lower after U.S. inventory data revealed a surprising rise in crude stockpiles. Brent Crude was down 0.80 per cent at USD 68.215, while WTI Crude dropped 0.75 per cent to USD 66.035.

For today, RBL Bank remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.