Indices climb a wall of worry, banking stocks lead the way

Equity benchmarks closed higher today, buoyed by a late rally in banking and financial services stocks, with the Nifty ending above the 25,500 level. However, gains were capped by weakness in consumer durables, pharma, and healthcare shares. Overall sentiment remained cautious amid global uncertainty triggered by U.S. President Donald Trump's announcement of fresh import tariffs on key trade partners.

The S&P BSE Sensex added 270.01 points or 0.32% to 83,712.51. The Nifty 50 index rose 61.20 points or 0.24% to 25,522.50.

Kotak Mahindra Bank (up 3.61%), HDFC Bank (up 0.72%) and ICICI Bank (up 0.42%) boosted the indices.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.01% and the S&P BSE Small-Cap index fell 0.17%.

The market breadth was negative. On the BSE, 1,948 shares rose and 2,081 shares fell. A total of 139 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 2.90% to 12.20.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.14% to 6.303 from the previous close of 6.294.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.6800 compared with its close of 85.9400 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement fell 0.36% to Rs 96,920.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.02% to 97.11.

The United States 10-year bond yield rose 0.43% to 4.414.

In the commodities market, Brent crude for September 2025 settlement lost 14 cents or 0.20% to $69.44 a barrel.

Global Markets:

Most shares in Europe and Asia advanced on Tuesday, brushing off fresh tariff threats from US President Donald Trump. Trump, in a series of posts on Truth Social, announced steep new duties on goods from 14 countries, including key Asia-Pacific partners.

Starting August 1, exports to the US from Japan, South Korea, Malaysia, Kazakhstan, and Tunisia will face 25% tariffs. Indonesia is set to be hit with a 32% excise duty, while Bangladesh, Cambodia, and Thailand will see 35% to 36% rates. Imports from Laos and Myanmar will be subject to a 40% duty.

Despite the tariff escalation, risk appetite remained firm across Asian bourses, though Wall Street reflected a more cautious tone overnight.

US stocks pulled back from record highs on Monday, pressured by profit-taking and increased risk aversion in the tech sector. The S&P 500 fell 0.8%, the Nasdaq Composite dropped 0.9%, and the Dow Jones Industrial Average also slid 0.9%.

Tesla shares plunged, wiping out $68 billion in market capitalization, after CEO Elon Musk announced plans to launch a new political party. The move sparked concerns over further distractions from his leadership at the EV giant.

In positive corporate news, Kalvista Pharmaceuticals rallied after the FDA approved its on-demand oral treatment for hereditary angioedema, marking the first of its kind in the US market.

Looking ahead, investors are awaiting the minutes of the Federal Reserve?s June policy meeting, scheduled for release Wednesday.

Stocks in Spotlight:

Nectar Lifesciences plunged 20% after the company announced a major strategic move, selling its core business division to Ceph Lifesciences for Rs 1,270 crore. The deal, executed on a slump sale basis, includes the manufacture, distribution, and marketing of APIs (active pharmaceutical ingredients) and formulations. As part of the broader restructuring, Nectar has also signed an asset purchase agreement to divest its menthol business assets to Ceph Lifesciences for an additional Rs 20 crore. The transaction, expected to be completed by 20 September 2025, is subject to shareholder approval at an extraordinary general meeting scheduled for August 4.

Titan Company fell 6.17%. The company released its business updates in Q1 of the current fiscal. Titan said that its domestic jewellery operations grew 18% YoY in the quarter, led by gold price volatility affecting consumer sentiments. Titan said buyer growth was flat on YoY basis for both TMZ brands (Tanishq, Mia, Zoya) and CaratLane.

Mahindra & Mahindra (M&M) shed 0.10%. The company said that its total production jumped 20.15% to 83,435 units in the month of June 2025, compared with 69,441 units produced in the same period last year.

Kotak Mahindra Bank added 3.61% after the bank's average total deposits jumped 12.9% to Rs 4,91,998 crore as on 30th June 2025 compared with Rs 4,35,603 crore as on 30th June 2024. Average CASA stood at Rs 1,91,995 crore as on 30th June 2025, registering the growth of 4.2% compared with Rs 1,84,306 crore as on 30th June 2024. Net advances at the end-of-period (EOP) jumped 14% to Rs 4,44,731 crore in Q1 FY26, compared with Rs 3,89,957 crore in Q1 FY25. Total deposits (EOP) increased 14.6% to Rs 5,12,838 crore in Q1 FY26 compared with Rs 4,47,418 crore in Q1 FY25.

Tata Motors rose 0.64%. The company said that Jaguar Land Rover?s wholesale volumes for Q1 FY26 were 87,286 units (excluding the Chery Jaguar Land Rover China JV), down 10.7% compared with Q1 FY25.

Ceinsys Tech rose 0.51%. The company received a letter of award (LoA) worth Rs 114.99 crore from the Mumbai Metropolitan Region Development Authority (MMRDA).

P N Gadgil Jewellers fell 0.84%. The company reported a 2.77% year-on-year (YoY) increase in total revenue to Rs 1,713.7 crore for the first quarter of FY26, up from Rs 1,667.5 crore in the same period last year.

Meghna Infracon Infrastructure added 4.33% after the company announced the signing of a development agreement with Jose Ville for a redevelopment of a residential project in Santacruz West, Mumbai.

Rajesh Power Services rose 4.69% after the company announced that it has secured an order worth Rs 220.18 crore from Madhya Gujarat Vij Company (MGVCL), Vadodara, Gujarat.

Omaxe rallied 2.55% after the company, through its subsidiary, announced a significant expansion in Madhya Pradesh with the acquisition of a 450-acre land parcel along the Super Corridor in Indore.

Container Corporation of India (Concor) rose 0.24%. The company announced that its total throughput jumped 11.29% to Rs 12,90,101 Twenty Foot Equivalent (TEUs) units in Q1 FY26 compared with 11,59,251 TEUs in Q1 FY25.

IPO Update:

The initial public offer (IPO) of Travel Food Services received bids for 32,94,317 shares as against 1,34,12,842 shares on offer, according to stock exchange data at 16:54 IST on Tuesday (8 July 2025). The issue was subscribed 0.25 times.

The issue opened for bidding on Monday (7 July 2025) and it will close on Wednesday (9 July 2025). The price band of the IPO is fixed between Rs 1,045 and 1,100 per share. An investor can bid for a minimum of 13 equity shares and in multiples thereof.

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