HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Key gauges end marginally higher on Tuesday
Jul-01-2025

Indian equity benchmarks closed marginally higher in a range-bound trade on Tuesday following gains in Bharat Electronics and Reliance Industries. The markets witnessed choppy trading as investors remained cautious ahead to developments in trade negotiations with the U.S. before the upcoming July 9 tariff deadline. 

Some of the important factors in today’s trade: 

Fiscal deficit slips to 0.8% of full-year target at May-end 2025: The Controller General of Accounts (CGA) in its latest data has showed that the central government's fiscal deficit for the first two months (April and May 2025) of FY26 fell to Rs 13,163 crore, or just 0.8% of the annual target, mainly due to a whopping Rs 2.69 lakh crore dividend received from the RBI. 

Rupee rises against US Dollar: Indian rupee appreciated against the US dollar, supported by weakness of the American currency in the overseas market. Moreover, Brent crude prices remained subdued, offering a buffer to India's import bill and helping cool inflation. 

India's manufacturing sector growth hits 14-month high: A monthly survey said India's manufacturing sector growth rose to a 14-month high of 58.4 in June marked by improved trends in output and new orders, alongside a record upturn in employment. 

Private capital crucial for sustainable development: Finance Minister Nirmala Sitharaman has underlined the crucial role of private capital in driving sustainable development, saying it is both an urgent necessity and a significant opportunity.

Global front: European markets were trading lower amidst uncertainty about U.S. tariffs that kept investor sentiment fragile. A mood of caution prevailed as markets awaited further developments in the trade negotiations between the U.S. and its trading partners. Asian markets settled mostly higher amidst expectations of a de-escalation in global trade tensions. 

Finally, the BSE Sensex rose 90.83 points or 0.11% to 83,697.29 and the CNX Nifty was up by 24.75 points or 0.10% to 25,541.80.   

The BSE Sensex touched high and low of 83,874.29 and 83,572.51 respectively. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 0.07%, while Small cap index was down by 0.18%.

The top gaining sectoral indices on the BSE were Telecom up by 0.52%, Energy up by 0.46%, Consumer Durables up by 0.43%, Metal up by 0.30%, Capital Goods up by 0.28% while, FMCG down by 0.68%, Power down by 0.41%, Utilities down by 0.32%, IT down by 0.24%, Auto down by 0.23% were the losing indices on BSE.

The top gainers on the Sensex were Bharat Electronics up by 2.51%, Reliance Industries up by 1.84%, Asian Paints up by 1.17%, Ultratech Cement up by 1.10% and Kotak Mahindra Bank up by 0.93%. On the flip side, Axis Bank down by 2.13%, Trent down by 1.25%, Eternal down by 1.14%, Tech Mahindra down by 1.05% and ICICI Bank down by 0.95% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its half-yearly The Reserve Financial Stability Report has said that the gross non-performing assets (GNPAs) of the banking system declined to a multi-decadal low of 2.3 per cent in March 2025. Meanwhile, it has indicated a possible rise in GNPAs of 46 banks accounting for 98 per cent of the total assets of scheduled commercial banks (SCBs) to 2.6 per cent by March 2027. The report showed that the loan write-offs, including technical write-offs -- which can be recovered in the future -- were one of the prime reasons for the reduction in GNPAs over the last five years.

In FY 25, write-offs to GNPA ratio for SCBs has increased to 31.8 per cent compared to 29.5 per cent in the previous year, led by private sector lenders and foreign banks, and added that write-offs by PSBs exhibited a marginal decline. The half-yearly slippage ratio, measuring new accretions to NPAs as a share of standard advances at the beginning of the half year, remained stable at 0.7 per cent. Further, on sectoral front, the agricultural sector had the highest contribution to GNPAs at 6.1 per cent, while it was broadly remained stable at 1.2 per cent for personal loans. Meanwhile, GNPAs of public sector banks from the credit card segment increased to 14.3 per cent as against 2.1 per cent in case of the private sector rivals.

The report also showed that share of the large borrowers in the GNPAs was declined to 37.5 per cent as compared to their 43.9 per cent share in the overall outstanding loans. It added that this cohort’s GNPA ratio declined from 3.8 per cent in September 2023 to 1.9 per cent in March 2025. Further, the share of top-100 borrowers in the overall loan pie was stable over the last six months at 15.2 per cent as none of them were classified as NPAs.

The CNX Nifty traded in a range of 25,593.40 and 25,501.80. There were 24 stocks advancing against 26 stocks declining on the index. 

The top gainers on Nifty were Apollo Hospital up by 3.63%, Bharat Electronics up by 2.70%, Reliance Industries up by 1.75%, Asian Paints up by 1.24% and SBI Life Insurance up by 1.19%. On the flip side, Nestle down by 2.22%, Axis Bank down by 2.14%, Shriram Finance down by 1.53%, Trent down by 1.29% and Eternal down by 1.25% and were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 29.11 points or 0.33% to 8,731.85, France’s CAC fell 20.91 points or 0.27% to 7,645.00 and Germany’s DAX lost 105.98 points or 0.45% to 23,803.63.

Asian markets settled mostly higher on Tuesday, tracking Wall Street’s gains overnight buoyed by signs of progress in trade talks between the US and Canada as well as other trading partners, while the possibility of interest rate cuts by the US central bank also supported market sentiments. However, Japanese shares declined as the yen strengthened with lingering concerns over the impact from US President Donald Trump’s tariff agenda, with just over a week left until his deadline for imposing higher levies. Hong Kong market was closed for the special administrative region establishment day.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,457.75

13.32

0.39

Hang Seng

--

--

--

Jakarta Composite

6,915.36

-12.32

-0.18

KLSE Composite

1,541.53

8.57

0.56

Nikkei 225

39,986.33

-501.06

-1.25

Straits Times

3,989.76

25.47

0.64

KOSPI Composite

3,089.65

17.95

0.58

Taiwan Weighted

22,553.72

297.70

1.32
  RELATED NEWS >>
Most Viewed >>
June 25 , 2025
Top Performing Flexi Cap Funds Over The Past D
June 26 , 2025
SEBI slaps Rs 25 lakh fine on BSE for regulato
June 26 , 2025
NSE may waive fee on electricity futures trade
June 26 , 2025
Zerodha Fund House launches Zerodha Silver ETF
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.