In the barometer index, the S&P BSE Sensex fell 170.22 points or 0.20% to 83,239.47. The Nifty 50 index lost 48.10 points or 0.19% to 25,405.30. In the two consecutive trading sessions, the Sensex and Nifty declined by 0.54% and 0.53%, respectively.

In the broader market, the S&P BSE Mid-Cap index shed 0.06% and the S&P BSE Small-Cap index rose 0.47%. The market breadth was positive.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, shed 0.48% to 12.39.

Among the sectoral indices, the Nifty Media index (up 1.45%), the Nifty Consumer Durables index (up 0.56%) and the Nifty Healthcare index (up 0.52%) outperformed the Nifty 50 index.

Meanwhile, the Nifty PSU Bank index (down 0.89%), the Nifty Metal index (down 0.78%) and the Nifty Realty index (down 0.71%) underperformed the Nifty 50 index.

Economy:

The seasonally adjusted HSBC India Services PMI Business Activity Index rose to 60.4 in June 2025 against 58.8 in May 2025. Monitored companies linked the upturn to positive demand trends and ongoing improvements in sales. Indian service providers ended the first fiscal quarter on strong footing.

Output and new order intakes rose at the fastest rates since August 2024, aided by another robust expansion in international sales and job creation. New orders expanded at the quickest rate since August 2024. Services companies benefited most from the continued strength of the domestic market, alongside a marked increase in new export business.

The HSBC India Composite PMI Output Index rose from 59.3 in May to 61.0, indicating the fastest rate of expansion in 14 months. Growth quickened at both manufacturers and service providers.

India-US trade deal update:

As per media reports, India and the United States will likely finalise a “mini trade deal” within the next 48 hours, with negotiations underway in Washington, DC.

India and the US are actively engaged in trade negotiations as the July 9 deadline looms. If a deal is not reached by then, Indian exports to the US could face a total tariff of 36% (10% baseline tariffs plus 26% reciprocal tariffs). Trump has indicated that the deadline may not be extended.

Numbers to Track:

The yield on India's 10-year benchmark federal paper added 0.19% to 6.300 from the previous close of 6.288.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.3550 compared with its close of 85.6200 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement shed 0.14% to Rs 97,253.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.01% to 96.44.

The United States 10-year bond yield lost 0.84% to 4.254.

In the commodities market, Brent crude for September 2025 settlement fell 19 cents or 0.26% to $68.93 a barrel.

Global Markets:

Most European stocks advanced on Thursday as investors awaited the release of U.S. jobs data.

Most Asian shares ended higher after U.S announced trade deal with Vietnam. According to a post on Truth Social, the U.S. will slap a 20% tariff on Vietnamese imports, while Vietnam will impose "ZERO Tariff" on U.S. goods. The announcement comes as Trump’s 90-day tariff reprieve nears its deadline.

Back in the U.S., Wall Street closed on a mixed note. The Dow Jones dipped 0.02%, while the S&P 500 rose 0.47%, and the Nasdaq jumped 0.94%.

Tesla made headlines with a sharp 5% rebound, recovering from the previous day’s drop triggered by another round of sparring between Trump and Elon Musk. The EV giant reported Q2 deliveries of 384,122 vehicles, down from 443,956 last year but beating analyst expectations.

Meanwhile, U.S. private payrolls disappointed again. June saw a decline of 33,000 jobs, against expectations of a 99,000 gain. May’s figures were also revised down to 29,000, marking the weakest two-month stretch since early 2023. The soft labor data reflects employer caution and worker hesitation amid tariff-related economic jitters.

All eyes are now on the upcoming nonfarm payrolls report, due Thursday, which could provide clues on the Fed’s next move on interest rates.

Markets will wrap up early on Thursday ahead of the July 4 Independence Day holiday.