Barometers ends with decent gains; broader mkt outperforms
In the barometer index, the S&P BSE Sensex, advanced 418.81 points or 0.52% to 81,018.72. The Nifty 50 index gained 157.40 points or 0.64% to 24,722.75.
The broader market outperformed the frontline indices, the S&P BSE Mid-Cap index added 1.11% and the S&P BSE Small-Cap index rose 0.76%. The market breadth was positive.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, shed 0.06% to 11.97.
The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) commenced its meeting today, 4 August 2025, and is scheduled to announce its decision on the key interest rate on 6 August. The RBI had unexpectedly lowered its key repo rate by 50 bps to 5.50% at its May meetinglarger than market expectations of a 25 bps reductionwhile shifting its policy stance from accommodative to neutral. The move brought total rate cuts to 100 bps since February, pushing borrowing costs to their lowest level since August 2022.
Among the sectoral indices, the Nifty Metal index (up 2.48%), the Nifty Auto index (up 1.61%) and the Nifty IT index (up 1.60%) outperformed the Nifty 50 index.
Meanwhile, the Nifty FMCG index (down 0.10%), the Nifty Financial services index (down 0.06%) and the Nifty Bank index flat and underperformed the Nifty 50 index.
Numbers to Track:
The yield on India's 10-year benchmark federal paper shed 0.63% to 6.331 from the previous close of 6.371.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 87.7350 compared with its close of 87.1850 during the previous trading session.
MCX Gold futures for 5 August 2025 settlement advanced 0.79% to Rs 1,00,539.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.24% to 98.69.
The United States 10-year bond yield added 0.07% to 4.233.
In the commodities market, Brent crude for Oct 2025 settlement lost $1.14 or 1.64% to $68.54 a barrel.
Global Markets:
European markets traded higher on Monday, kicking off the new week on a positive note as investors continued to digest the Trump administrations volatile trade negotiations and the evolving global growth outlook.
Asian shares ended mixed as investors assessed the latest round of tariffs that have been levied by the U.S. on its trading partners. These tariffs have raised concerns over mounting inflation and could also possibly lead to an economic slowdown.
Movements in crude oil prices will be closely watched after OPEC+ announced a significant output hike. On Sunday, the bloc agreed to raise production by 547,000 barrels per day for Septemberthe latest in a series of accelerated increases aimed at regaining market share.
The decision comes amid concerns over potential supply disruptions related to Russia, with OPEC+ citing a healthy global economy and low inventories as key factors behind the move.
On Wall Street, major equity indices ended lower on Friday as a weaker-than-expected jobs report, combined with fresh U.S. tariffs on dozens of trading partners, fueled concerns that the American economy might be slowing down significantly.
The S&P 500 slipped 1.6% to close at 6,238.01, while the Nasdaq Composite pulled back 2.24% to 20,650.13. The Dow Jones Industrial Average fell 542.40 points, or 1.23%, to finish the session at 43,588.58.
Data released by the Labor Department on Friday showed that the US nonfarm payrolls rose by 73,000 in July 2025, well below expectations of 110,000. The revised figures for May and June showed that employment was cumulatively lower by 258,000 than previously reported, suggesting the labor market may be cooling more rapidly than initially anticipated.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
an hour ago
- Hindustan Times
India responds boldly as Trump drops 2nd tariff hammer over Russian oil with 'they don't care' post
India responds boldly as Trump drops 2nd tariff hammer over Russian oil with 'they don't care' post
Indian Express
an hour ago
- Indian Express
Brazil chooses local relief over retaliation for US tariffs, sources say
Brazil's government has set aside for now plans for direct retaliation against steep US tariffs taking effect this week, focusing instead on a relief package for industries hit hardest by the levies, sources familiar with the strategy said. Wide-ranging exemptions granted in US President Donald Trump's executive order last week spared some of the most vulnerable sectors of Latin America's largest economy, to the relief of many investors and business leaders. That has left Brasilia cautious about responding to Trump with reciprocal tariffs or other retaliation that could escalate tensions, said government officials, who requested anonymity to discuss confidential deliberations. Talks with Washington are likely to be slow and complex, said one of the sources, so Brazil's government is prioritizing immediate relief for exporters, such as through public credit lines and other support for export finance. Another official said the government is studying potential responses to the tariffs that would affect U.S. companies, but sees them as a last resort if negotiations fail. Those potential countermeasures, now under review, could include suspension of royalty payments for pharmaceutical patents and media copyrights, two sources said. The government had also signaled last year that it was preparing a new tax that could affect big US tech companies, but shelved the plan this year to avoid antagonizing Trump ahead of his April tariff announcement. At the time, Brazil was saddled with a 10% tariff, among the lowest in the world, which many credited to a longstanding US trade surplus with Brazil. Trump then tied a steeper 50% tariff in July to what he called a political 'witch hunt' against former President Jair Bolsonaro, a right-wing ally on trial for an alleged coup plot to overturn his 2022 election loss. Brazilian President Luiz Inacio Lula da Silva initially said he would respond under the country's Economic Reciprocity Law, passed by Congress to provide legal grounds for countermeasures against trade sanctions, fueling speculation about retaliation. Talk of reciprocal action has since faded, even as Lula criticizes Trump's rationale for the tariff hike, defending the independence of Brazil's judiciary and insisting any negotiations should remain strictly focused on trade. US tariff exemptions granted last week for Brazil's aviation, energy and mining industries were taken in Brasilia as evidence that patient diplomacy and lobbying by affected US companies seeking relief was the best way to get results in Washington. Brazil also said it plans to file a formal complaint at the World Trade Organisation over the tariffs, even though that dispute settlement system has been stalled since the first Trump administration. 'You still need to go through the available channels,' one Brazilian official said, while acknowledging that a resolution is unlikely under the current state of the WTO. More immediately, the government is fine-tuning measures to shield sectors most hurt by the US tariffs set to take effect on Wednesday, extending financial relief to companies already facing canceled contracts. Officials have said the package will likely include credit lines and possible tweaks to the export credit insurance and export financing mechanisms, according to one of the sources. Finance Minister Fernando Haddad, who said relief measures could begin rolling out this week, on Friday said the government was never committed to retaliating against Washington. 'We never used that verb to characterize the actions the Brazilian government will take,' he said. 'These are actions to protect sovereignty, to protect our industry, our agribusiness, our agriculture,' he told reporters. 'That word (retaliation) was not present in the president's speech, nor in any minister's.'
Time of India
an hour ago
- Time of India
Top economist issues chilling recession warning: The Fed can't save us this time
US recession warning 2025: A series of concerning economic reports have put US households and businesses on alert, indicating a potential recession. Flat consumer spending, shrinking factories, and stalled hiring are key indicators. Economist Mark Zandi warns that the economy is on the "precipice of recession," attributing the slowdown to President Trump's trade and immigration policies. Tired of too many ads? Remove Ads Economist Mark Zandi Warns: 'The Economy Is on the Precipice of Recession' Sluggish Hiring Numbers Raise Concerns Tired of too many ads? Remove Ads GDP Growth Hides Weakness in Core Domestic Demand Rising Core Inflation Limits Federal Reserve's Response Options Housing and Manufacturing Sectors in Decline Why the Unemployment Rate Isn't Telling the Full Story Tariffs and Immigration Crackdowns Are Slowing Growth FAQs Tired of too many ads? Remove Ads US households and businesses are starting the week on edge after a series of economic reports painted a troubling picture: consumer spending is flat, factories are shrinking, and hiring has stalled, as per a Analytics chief economist Mark Zandi highlighted that 'The economy is on the precipice of recession. That's the clear takeaway from last week's economic data dump,' as quoted in the Fortune report. This warning comes amid growing signs that US president Donald Trump's trade and immigration policies are dragging down growth, according to the warned that, 'Consumer spending has flatlined, construction and manufacturing are contracting, and employment is set to fall. And with inflation on the rise, it is tough for the Fed to come to the rescue,' as quoted in the Fortune READ: Social security shake-up: Trump's new move has retirees fuming — here's what you need to know The latest job growth numbers came in far below expectations, as payrolls increased by just 73,000 in July, well under the forecast of roughly 100,000, as reported by Fortune. Even more alarming, May and June saw steep downward revisions, May was cut from 144,000 to 19,000, and June from 147,000 to just 14,000, according to the report. That means the average monthly job increase over the past three months is now only 35,000, suggesting a slowdown in momentum that can't be ignored, as reported by Gross Domestic Product (GDP) grew faster than expected in Q2, but a closer look reveals weak underlying demand because a key gauge that strips out foreign trade and focuses on total domestic consumption shows the economy is in a slowdown phase, as reported by READ: As the July jobs report paints a grim picture, 114 companies plan layoffs in August - is yours on the list? Meanwhile, the core inflation rate, which excludes volatile food and energy prices, rose to 2.8%, surpassing the Federal Reserve's 2% target, according to the report. That combination of weakening growth and sticky inflation presents a real challenge for policymakers, as per data this week showed construction activity falling, notably in single-family home spending, and the Institute for Supply Management's manufacturing activity index for July slipped, signaling contraction in a vital sector of the economy, according to the the unemployment rate remains steady between 4% and 4.2% for more than a year, but that is because the size of the labor force has stagnated, as reported by Fortune. Zandi pointed out that the foreign-born workforce has plunged by 1.2 million in the last six months amid Trump's immigration crackdown, while the overall labor participation rate has fallen, as reported by attributes much of the slowdown to tariffs and restrictive immigration policies, both of which he says are squeezing profits and shrinking the economy's potential, according to the report. He observes an economy-wide hiring freeze, especially hurting recent graduates entering the workforce, as per the Fortune economist explained, 'It's no mystery why the economy is struggling; blame increasing U.S. tariffs and highly restrictive immigration policy,' adding, 'The tariffs are cutting increasingly deeply into the profits of American companies and the purchasing power of American households. Fewer immigrant workers means a smaller economy,' as quoted by officially, but economists say the warning sign like weak hiring and flat spending are piling up, as per the Fortune not right now. Inflation is still above the Fed's 2% target, so they're holding off on rate cuts.
