On Thursday, July 3, the Nifty 50 and Sensex are expected to open on a positive note, driven by optimism surrounding a trade deal. President Trump has announced a new agreement that will impose a 20% tariff on Vietnam, down from the previously proposed 46% on 'Liberation Day.' Hopes also remain high that a U.S.-India trade deal will be announced soon.
As of 7:21 AM, the GIFT Nifty was trading near the 25,572 mark, up 41 points from its previous close, indicating that the Indian market is likely to open in green.
Asian markets traded mixed, while the US stock market ended mostly higher, with the Nasdaq and S&P 500 registering a record high close. Amid the buoyant close in the tech-heavy Nasdaq, the Indian IT stocks are likely to remain in focus.
Regarding institutional flow, the DIIs in Indian equities have remained net buyers for the past 3 trading sessions, while FIIs remained net sellers for the last 3 trading sessions.
On Wednesday, July 2, Foreign Institutional Investors (FIIs) were net sellers, having sold equities worth ₹1,561.62 crore. Domestic Institutional Investors (DIIs), on the other hand, bought shares totalling ₹3,036.68 crore during the same session.
Indian stock markets ended slightly lower on Wednesday as investors booked profits in financial stocks, overshadowing the optimism surrounding a possible trade pact between India and the US. Caution prevailed in the market as participants awaited clarity on the agreement, which could potentially prevent the imposition of a 26% retaliatory tariff on Indian goods by the US.
The Sensex slipped 287.60 points, or 0.3%, finishing at 83,409.69. Meanwhile, the Nifty 50 lost 88.40 points, or 0.4%, closing at 25,453.40.
Asian markets were seen trading mixed ahead of the release of U.S. employment figures.
U.S. markets ended higher on Wednesday, with the S&P 500 and Nasdaq notching fresh record closes, driven by strong gains in technology shares and a new trade deal between the U.S. and Vietnam that eased trade-related worries.
The S&P 500 advanced by 29.41 points or 0.47% to close at 6,227.42, while the Nasdaq Composite jumped 190.24 points or 0.94%, finishing at 20,393.13. However, the Dow Jones Industrial Average edged down slightly by 10.52 points or 0.02% to settle at 44,484.42. On the NYSE, there were 358 stocks hitting new 52-week highs compared to 41 hitting new lows.
President Donald Trump has announced a new trade agreement with Vietnam, which significantly reduces tariffs on Vietnamese imports to 20%, down from the earlier proposed rate of 46%. As part of the deal, American goods will now be allowed into Vietnam without any import duties.
In June, the U.S. private sector saw its first job decline in over two years, with a loss of 33,000 positions, according to the ADP National Employment Report. This comes after May’s revised gain of 29,000 jobs. The drop surprised analysts, who had expected a rise of 95,000 jobs based on earlier projections, which had indicated a 37,000 job increase in May.
Gold edges lower in the early Asian session amid hopes for more trade deals, which could reduce the safe-haven appeal of the precious metal. President Trump announced Wednesday that the U.S. and Vietnam have struck a tariff deal that will see American goods enter the country duty-free. In return, the U.S. will charge 20% tariffs on Vietnamese goods, Trump said, instead of the 46% tariffs he had announced in April. Spot gold price was stable at $3,344.99 per ounce.
Crude oil prices fell on Thursday, giving up the previous session’s gains. The decline was driven by fresh concerns about demand in the U.S. after official data revealed an unexpected increase in crude stockpiles. Brent Crude slipped 0.80% to $68.215, while WTI Crude fell 0.75% to $66.035.
Disclaimer: The article is for informational purposes only and not investment advice.
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