The headline equity benchmarks traded with minor gains in early trade. The Nifty traded above the 25,550 mark. Investor sentiment was lifted by U.S. President Donald Trump’s remarks hinting at a possible trade deal with India.
Metal, pharma, and auto shares advanced, while bank, financial services and media stocks declined.
At 09:30 IST, the barometer index, the S&P BSE Sensex advanced 137.09 points or 0.16% to 83,834.38. The Nifty 50 index added 23.45 points or 0.09% to 25,565.25.
In the broader market, the S&P BSE Mid-Cap index rose 0.08% and the S&P BSE Small-Cap index jumped 0.07%.
The market breadth was strong. On the BSE 1,715 shares rose and 1,128 shares fell. A total of 162 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth 1,970.14 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 771.08 crore in the Indian equity market on 1 July 2025, provisional data showed.
Stocks in Spotlight:
Hyundai Motor India shed 0.55%. The company has achieved total monthly sales of 60,924 units in June 2025. SUVs contributed 67.6% to HMIL total domestic sales in June 2025. Also, the total sales for the April-June quarter FY2026 were reported at 1,80,399 units.
Maruti Suzuki India added 0.10%. The auto major’s total sales declined 6.27% to 167,993 units in June 2025 as against 179,228 units sold in June 2024. Total production fell 4.17% to 127,545 units in June 2025 compared with 133,095 units in June 2024.
V-mart Retail rose 0.92%. The company’s revenue from operations stood at Rs 885 crore in Q1 FY26, up 13% compared with Rs 786 crore in Q1 FY25. The same store sales growth (SSSG) stood at 1% in Q1 FY26.
Numbers to Track:
The yield on India's 10-year benchmark federal paper added 0.03% to 6.297 from the previous close of 6.295.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.6175 compared with its close of 85.5900 during the previous trading session.
MCX Gold futures for 5 August 2025 settlement declined 0.05% to Rs 97,196.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.12% to 96.35.
The United States 10-year bond yield lost 0.09% to 4.250.
In the commodities market, Brent crude for September 2025 settlement gained 4 cents or 0.06% to $67.15 a barrel.
Global Markets:
Most Asian stocks declined on Wednesday as investors evaluated recent comments from U.S. Federal Reserve Chair Jerome Powell. Powell stated on Tuesday that the central bank would have already cut interest rates if not for U.S. President Donald Trump's tariff policies.
In Singapore, stocks touched a record high on Wednesday morning, supported by local market strength despite broader global uncertainty.
Overnight in the United States, major indices ended the session with mixed results. The S&P 500 dipped 0.11% and the Nasdaq Composite declined 0.82%. In contrast, the Dow Jones Industrial Average rose 0.91%, reflecting some rotation into blue-chip stocks.
Investor sentiment remained cautious ahead of the July 9 tariff deadline, when reciprocal tariffs are scheduled to be reimposed unless a resolution is reached.
Tesla shares dropped 5.3% after President Trump criticized CEO Elon Musk, claiming he has benefited disproportionately from government subsidies. Trump also called for a review of Tesla’s federal support.
The tension follows Musk’s public criticism of a large tax and spending bill, which narrowly passed in the Senate on Tuesday. The bill is expected to add approximately 3.3 trillion dollars to the national debt. It now moves to the House of Representatives for further consideration, with President Trump aiming to sign it into law by the July 4 holiday.
Traders are now focused on Thursday's U.S. nonfarm payrolls report, which may influence the Federal Reserve's decision on a potential rate cut in July.