Indices eye flat opening as FPIs sell, global trade buzz builds

GIFT Nifty:

GIFT Nifty August 2025 futures were trading 4 points lower in early trade, suggesting a flat opening for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 4,209.11 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 4,358.52 crore in the Indian equity market on 23 July 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 14825.06 crore in the secondary market during July 2025. This follows their purchase of shares worth Rs 8466.77 crore in June 2024.

Global Markets:

Asian market traded higher on Thursday as fresh trade developments between the U.S. and Japan, alongside encouraging signals of a deal with the European Union, buoyed investor sentiment.

Investor focus shifted to Washington?s evolving trade strategy, with U.S. President Donald Trump setting his sights on the European Union after finalizing a sweeping agreement with Japan. Negotiators from both the U.S. and EU are now under pressure to strike a deal by August 1, as the Trump administration appears firm on its tariff timeline.

On Tuesday, the U.S. and Japan sealed what Trump described as the largest trade deal in history. The agreement includes a $550 billion investment from Japan into the U.S. economy. In return, tariffs on Japanese exports to the American market?ranging from automobiles to agricultural goods?have been reduced to 15% from the previously proposed 25%. Trump hailed the deal as a mutually beneficial win that opens Japan?s markets to U.S. cars, trucks, and farm products.

Economic data from Japan, however, painted a mixed picture. The au Jibun manufacturing PMI dropped to 48.8 in July?s preliminary reading, below expectations of 50.2 and down from 50.1 in June, signaling a mild contraction. On the other hand, the services sector showed resilience, with the services PMI rising to 53.5 from 51.7 a month earlier.

Overnight on Wall Street, U.S. equities finished higher after Trump promoted his trade accomplishments with Japan and Indonesia on Truth Social. He also hinted at easing tariffs if other nations opened their markets to American goods. Adding to the momentum, Washington unveiled its new ?AI Action (WA:ACT) Plan.?

The Dow Jones Industrial Average jumped 1.14% to a six-month high, while the S&P 500 gained 0.78% and the Nasdaq Composite added 0.61%.

Domestic Market:

The domestic equity indices ended with strong gains on Wednesday, with the Nifty closing above the 25,200 level. This positive performance was largely attributed to optimistic signals from Asian markets, which were buoyed by the newly announced US-Japan trade agreement. Auto and private bank stocks witnessed strong buying interest, while realty and media shares experienced a decline. The S&P BSE Sensex advanced 539.83 points or 0.66% to 82,726.64. The Nifty 50 index added 159 points or 0.63% to 25,219.90.

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