HIGHLIGHTS Axis Bank looks to raise stake to become a promoter entity in Axis Max Life Insurance Zee Entertainment stock falls 5% after ad revenue declines more-than-expected Paytm Operational and net profit reported for the first time; revenue up 28% Tilaknagar Industries front-runner to acquire Imperial Blue brand Greenlam Industries to invest ₹11.47 billion in Andhra Pradesh for wood laminate plant Indian equity benchmarks ended marginally lower on Tuesday, as weakness in banking and midcap stocks overshadowed gains in select consumer and industrial names. The session remained largely rangebound, with sentiment dampened by weak market breadth and lacklustre global cues. The Nifty Bank index dropped 197 points to 56,756, dragged by selling in major private lenders. Midcaps bore the brunt of the decline, with the Nifty Midcap 100 falling 365 points to settle at 59,103, underperforming the broader market. Market breadth remained negative, reflecting broader investor caution. Indices Last Change % Change SENSEX 82,186.81 -13.53 -0.02% NIFTY 50 25,060.90 -29.80 -0.12% NIFTY MIDCAP 100 59,103.40 -364.95 -0.61% NIFTY SMALLCAP 100 18,893.35 -64.95 -0.34% INDIA VIX 10.75 -0.45 -4.01% Sectoral PerformanceAll major sectoral indices closed in the red. The media index led losses, sliding 2.5%, followed by the PSU Bank index, down 1.6%. Realty, auto, and pharma indices also recorded losses, signalling widespread profit-booking and limited risk appetite. Despite the weak tone, a few stocks stood out. Eternal surged up to 15%, extending its rally after upbeat Q1 results and optimistic management commentary. Info Edge rose 4%, driven by a spike in the valuation of its stake in Eternal. Titan added 1% after announcing it would acquire a 67% stake in Damas Jewellery, a move aimed at expanding its luxury jewellery footprint in the Middle East. Top Gainers % Change Top Losers % Change NIFTY FINANCIAL SERVICES 0.01% NIFTY MEDIA -2.27% NIFTY PSU BANK -1.57% NIFTY REALTY -1.01% NIFTY PHARMA -1.00% NIFTY AUTO -0.74% Indian government bonds traded in a narrow range on Tuesday, as investors stayed cautious ahead of the Reserve Bank of India’s policy decision in August. With no clear signals on the future path of rate cuts and banking system liquidity tightening, trading volumes remained subdued. The yield on the 10-year benchmark gilts edged up to 6.3069%, slightly higher than Monday’s 6.2996%. Liquidity conditions in the banking system added to the cautious tone. The surplus fell to ₹2.4 trillion, the lowest in seven weeks, amid ongoing tax outflows. This compares with ₹3.04 trillion in the previous session, suggesting reduced lending capacity and limiting room for aggressive bond buying. Market participants are looking for cues from both domestic and global central banks. The Federal Reserve’s upcoming rate decision later this month will be closely monitored for its impact on global flows. Domestically, the government’s scheduled bond auction on Friday will also be a key test of investor appetite. Despite the subdued tone, hopes of a rate cut remain alive. June’s inflation print — the slowest in over six years — has revived expectations that the RBI could ease further. Foreign investors have also returned, buying ₹129 billion of index-linked Indian debt over the last month. Tenure Today Previous 10-year Gilt 6.31% 6.30% 5-year gilt 5.97% 5.96% 5-year OIS 5.68% 5.68% The Indian rupee extended its losing streak for the fifth straight session on Tuesday, closing at 86.3675 per US dollar, down 0.1% on the day. The currency has now weakened around 0.6% over the past five sessions, under pressure from persistent foreign outflows and global risk aversion. Concerns over trade negotiations with the United States weighed heavily on sentiment. With an August 1 deadline approaching, the lack of progress on tariff concessions — particularly on agricultural and dairy products — has dimmed hopes of an interim trade agreement. In the absence of a deal, Indian exports may face tariffs as high as 26%, further pressuring the rupee through the trade channel. Adding to the rupee’s weakness is the modest strength in the US dollar index, supported by global safe-haven demand amid trade uncertainty and a cautious tone in equity markets. While Wall Street hovered near record highs, Asian and European equity markets remained under pressure. Domestic equities also traded lower, reinforcing concerns about foreign portfolio outflows. The rupee’s near-term outlook remains fragile, with traders closely monitoring both geopolitical developments and signals from central banks. Unless trade tensions ease or foreign inflows resume, the rupee may continue facing downside pressure. Unit Today Previous Dollar/Rupee 86.37 86.29 Dollar Index 97.57 98.25 1-year Dollar/rupee premium (%) 2.02% 2.00% OUTLOOKIndian equities are likely to trade with a negative bias in the near term, as investor sentiment remains subdued amid weak market breadth and global uncertainty. Despite strength in select consumer and industrial names, persistent selling pressure in banking, PSU, and midcap segments may cap upside potential. Sector rotation and stock-specific action are expected to dominate as investors await upcoming corporate earnings and management commentary. The Nifty Bank index could remain under pressure following recent losses, while interest in companies with strong earnings performance, such as Eternal and Titan, may support selective buying. Government bond yields are expected to remain rangebound ahead of the Reserve Bank of India's August policy meeting. Market participants will likely track central bank commentary closely for signs of further easing, especially after June inflation dropped to a multi-year low. Tight banking liquidity conditions due to recent tax outflows and upcoming debt auctions could keep yields slightly elevated in the interim. Foreign investor interest in globally indexed bonds will be a key factor to watch, as overseas demand has strengthened recently. The Indian rupee is likely to stay under pressure in the short term, with risks tilted to the downside. Continued equity outflows, uncertainty over trade negotiations with the US, and a firm US dollar could weigh on the currency. The rupee may trade in a narrow range but test new lows if risk sentiment deteriorates. Forward premiums could rise slightly on arbitrage opportunities between onshore and offshore markets, while RBI intervention might cushion excessive volatility. Key Events & Data Due Wednesday: Economic Data Japan Core CPI US June Existing Home Sales Data US Weekly Crude Oil Inventories Data Corporate Actions Earnings: Coforge, Force Motors , Infosys, Maharashtra Scooters, Mahindra Holidays & Resorts India, MAS Financial Services, Oracle Financial Services Software, Orbit Exports, PCBL Chemical, Persistent Systems, PNB Gilts, SRF, Supreme Petrochem, Syngene International, Tata Consumer Products, Tata Teleservices (Maharashtra) Aaron Industries to consider bonus share issue Westlife Foodworld to consider dividend
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