Benchmarks stumble for third day; Nifty ends below 24,550 mark

Equity benchmarks ended deep in the red today, marking their third consecutive day of losses. The mood on Dalal Street turned sour as global trade tensions escalated following the U.S. decision to hike tariffs on steel and aluminium. The move spooked investors, especially given its implications for Indian exporters. Adding fuel to the fire, weak manufacturing data from both the U.S. and China pointed to cooling global demand.

The Nifty started the day on a strong note, opening at 24,786.30 and briefly climbing to 24,845.10. But the early optimism faded fast. Persistent selling dragged the index to a low of 24,502.15 before it closed below the 24,550 mark. Recovery attempts in the second half were shallow and short-lived.

Sectorally, private banks, energy, and consumer durables were the biggest laggards. However, realty stocks managed to stay afloat, buoyed by hopes of a potential rate cut from the Reserve Bank of India.

The S&P BSE Sensex declined 636.24 points or 0.78% to 80,737.51. The Nifty 50 index dropped 174.10 points or 0.70% to 24,542.50. In the three consecutive sessions, the Sensex and Nifty declined 1.1% and 1.17%, respectively.

Adani Ports & SEZ (down 2.42%), Bajaj Finance (down 1.69%) and ICICI Bank (down 0.90%) were major drags today.

In the broader market, the S&P BSE Mid-Cap index fell 0.52% and the S&P BSE Small-Cap index shed 0.07%.

The market breadth was negative. On the BSE, 1,731 shares rose and 2,266 shares fell. A total of 147 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 3.51% to 16.56.

Numbers to Track:

The yield on India's 10-year benchmark federal paper declined 0.18% to 6.212 from previous close of 6.223.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.5925, compared with its close of 85.3950 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement shed 0.26% to Rs 97,700.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.26% to 98.94.

The United States 10-year bond yield fell 1.03% to 4.415.

In the commodities market, Brent crude for August 2025 settlement shed 2 cents or 0.03% to $64.61 a barrel.

Global Markets:

US Dow Jones futures were down 160 points, signaling a weak start for Wall Street.

Most European markets advanced as inflation in the euro zone eased to 1.9% from 2.2% in May. The drop was largely driven by, a steep monthly drop in services inflation from 4% in April to 3.2% in May, building the case for a widely anticipated interest rate cut from the European Central Bank when it meets on Thursday.

Most Asian stocks ended higher on Tuesday, tracking overnight gains across all three major U.S. stock indices, despite ongoing global trade tensions. South Korean markets remained closed due to polling day.

China responded to U.S. allegations of violating a temporary trade agreement, stating that the United States had failed to uphold its side of the deal. The exchange highlights increasing strain in trade negotiations between the two countries.

Separately, the European Union criticized U.S. President Donald Trump's proposal to raise steel tariffs to 50%, arguing that the move could disrupt ongoing EU-U.S. trade discussions. An EU spokesperson reportedly indicated that the bloc is prepared to implement countermeasures if necessary.

China's Caixin/S&P Global manufacturing purchasing managers? index (PMI) declined to 48.3 in May from 50.4 in April, marking its first drop below the 50-point threshold, indicating contraction, since September of the previous year.

In the U.S., stock indices ended higher on Monday, lifted by strong gains in technology stocks and a rally in the energy sector as oil prices climbed. Domestic steel and aluminum stocks also advanced on optimism around potential tariff hikes. Last week, Trump announced plans to double tariffs on imported steel and aluminium, from 25% to 50%, stoking hopes of increased protection for domestic producers. The S&P 500 rose 0.41%, the Nasdaq Composite gained 0.67%, and the Dow Jones Industrial Average edged up 0.08%.

US ISM Manufacturing PMI edged down to 48.5 in May from 48.7, marking the lowest reading since November. This marks the third straight month of contraction, with underlying components still signaling broad-based weakness.

New Listing:

Shares of Prostarm Info Systems settled at Rs 126.25 on the BSE, representing a premium of 20.24% compared with the issue price of Rs 105.

The scrip was listed at Rs 125, exhibiting a premium of 19.05% to the issue price. The stock has hit a high of 130 and a low of 120. On the BSE, over 13.14 lakh shares of the company were traded in the counter.

Stocks in Spotlight:

Waaree Renewable Technologies rose 0.54% after the company secured a letter of award (LoA) for the engineering, procurement, and construction (EPC) of a large-scale solar power project. The new contract is valued at approximately Rs 346.33 crore.

Transrail Lighting rallied 5.97% after the company announced that it has secured fresh domestic and international orders worth Rs 534 crore.

United Spirits jumped 1.79% to Rs 1,577 after a leading foreign brokerage upgraded the stock to 'Overweight' from 'Neutral' and raised the target price to Rs 1,760 from Rs 1,415.

Go Fashion (India) rose 3.29% to Rs 889 after a domestic brokerage initiated coverage with a 'buy' rating and a target price of Rs 1,127, citing strong brand presence and first-mover advantage as key growth catalysts.

Medicamen Biotech soared 4.19% after the company has received its first Abbreviated New Drug Application (ANDA) approval from the U.S. Food and Drug Administration (USFDA) for Bortezomib for injection 3.5 mg.

Sika Interplant Systems surged 13.59% after the company signed a license agreement with Collins Aerospace units to offer MRO services for Airbus A320/A321 components. The move boosts Sika?s footprint in aviation servicing across India and nearby markets.

Deepak Builders and Engineers India rose 2.94% after the company announced that it had emerged as the lowest bidder (L1) for the Rs 142.60 crore Unity Mall EPC project at HSIIDC Industrial Estate, Karnal, Haryana.

Grasim Industries added 1.10% after the company announced that its finance committee has approved the issuance of non-convertible debentures (NCDs) aggregating up to Rs 1,000 crore.

Maruti Suzuki India declined 1.33%. The company?s total production rose 1.38% to 195,882 units in May 2025 as against 193,207 units recorded in May 2024.

Larsen & Toubro (L&T) fell 1.03%. The company announced that its water & effluent treatment (WET) vertical has secured significant orders from the Public Health Engineering Department of Rajasthan. The value of the contract ranges from Rs 1,000 crore to Rs 2,500 crore.

MIC Electronics slipped 1.22%. The company said that it has received a letter of acceptance (LoA) worth Rs 1.11 crore from the Pandit Deen Dayal Upadhyaya Division of East Central Railway.

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