Indian Markets Open Higher on Hopes of US-India Trade Deal; Focus on HDB Financial’s Market Debut

By 9:15 a.m. IST, the Nifty 50 had edged up 0.18 per cent to 25,588.3, while the BSE Sensex gained 0.11 per cent to reach 83,790.72.

Market Update at 10:00 AM: India’s equity indices opened slightly higher on Wednesday, buoyed by optimism following U.S. President Donald Trump’s statement suggesting a potential trade deal between the U.S. and India. Supporting this sentiment, U.S. Treasury Secretary Scott Bessent noted that both countries were close to finalising an agreement that could help India avoid steep tariff hikes, with a key deadline set for July 9.

By 9:15 a.m. IST, the Nifty 50 had edged up 0.18 per cent to 25,588.3, while the BSE Sensex gained 0.11 per cent to reach 83,790.72. Out of 13 key sectoral indices, 11 were trading in positive territory. Broader market indices also reflected strength, with the Nifty Smallcap rising 0.25 per cent and the Nifty  Midcap inching up 0.1 per cent.

Market participants are closely watching the listing of HDB Financial Services (HDBF.NS), which is set to debut after raising USD 1.5 billion in its IPO — the largest ever by an Indian non-banking finance company. The offering attracted strong investor interest, with bids crossing USD 19 billion. HDB Financial is a subsidiary of HDFC Bank, India’s top private-sector lender.

Pre-Market Update at 8:00 AM: Indian markets are likely to begin Wednesday’s session with a cautious tone, mirroring the mixed trends seen in global indices. As of 7:31 AM, the GIFT Nifty was trading around the 25,668 level—12 points higher than its previous close—indicating a muted start for domestic equities.

Asian markets were largely in the red this morning, reflecting the subdued cues from Wall Street, where the Nasdaq and S&P 500 ended lower on Tuesday.

HDB Financial Services, an NBFC and a subsidiary of HDFC Bank, is all set to list on Indian exchanges today. The Rs 12,500 crore IPO received robust demand, with an overall subscription of 17.65 times. The offering included Rs 2,500 crore in fresh equity and Rs 10,000 crore through an offer-for-sale. The Qualified Institutional Buyers (QIB) portion alone was subscribed 31.73 times, highlighting strong institutional participation. With the grey market premium hovering around Rs 71, the stock is expected to list near Rs 811—about 9.6 per cent above its issue price of Rs 740.

Foreign Institutional Investors (FIIs) turned net sellers on Tuesday, offloading shares worth Rs 1,970.14 crore. In contrast, Domestic Institutional Investors (DIIs) made net purchases of Rs 771.08 crore.

On Tuesday, benchmark indices ended marginally higher. The Sensex rose by 90.83 points (0.11 per cent) to close at 83,697.29, while the Nifty 50 gained 24.75 points (0.10 per cent) to settle at 25,541.80, maintaining its hold above the 25,500 level.

Asian stocks opened weak, taking cues from Wall Street’s overnight performance. In the U.S., the Dow Jones advanced by 400.17 points (0.91 per cent) to end at 44,494.94. However, the S&P 500 dropped by 6.94 points (0.11 per cent) to close at 6,198.01, and the Nasdaq Composite fell 166.84 points (0.82 per cent) to 20,202.89, pulled down by losses in tech stocks.

Key U.S. Market Developments

• The U.S. Senate approved a major tax and spending bill championed by President Trump, which could add USD 3.3 trillion to national debt. The bill now heads to the House.
• India and the U.S. are nearing a trade agreement that would reduce tariffs on American exports to India. Treasury Secretary Scott Bessent said this would help avoid an impending tariff hike set during the Trump era.
• U.S. job vacancies rose unexpectedly in May, reaching 7.77 million, an increase of 374,000 from April, as per the JOLTS report.
• Manufacturing activity in the U.S. continued to contract in June, with the ISM manufacturing PMI inching up to 49.0 from 48.5, still below the 50-mark threshold indicating expansion.

Gold remained flat ahead of U.S. payroll data. Spot gold was unchanged at USD 3,338.22 per ounce, while U.S. gold futures held at USD 3,347.80.

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

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