Indian benchmarks end flat as consumer stocks offset broader losses amid tariff uncertainty
The Nifty 50 closed largely flat at 25,461.3 and the BSE Sensex rose 0.01% to 83,442.5.
The more domestically focused small-cap and mid-cap indexes declined 0.4% and 0.3%, respectively.
Nine of the 13 major sectoral indexes ended lower.
Consumer stocks, however, drove sectoral gains, rising 1.7%, led by a 6.4% surge in Godrej Consumer Products after the company projected double-digit revenue growth for the June quarter.
Analysts also attributed the rise in the consumer index to growing expectations of rural demand recovery and stable monsoon rains.
Indian benchmarks log weekly losses on caution over trade deal, Jane Street ban
Hindustan Unilever rose 3%, while ITC and Nestle added 1% and 1.2%, respectively.
Reliance, the third-heaviest stock on the Nifty, advanced about 1%, helping prop up the benchmark.
In tariff-related news, President Donald Trump said trade deals with several countries are near finalisation and that tariff notifications would be sent by July 9, with new rates effective August 1.
Trump also warned that countries 'aligning with the anti-American policies' of the BRICS bloc would face an additional 10% tariff - with no exceptions. India is part of the group.
'Trade policy uncertainty has become a dominant risk for Indian equities,' said Alekh Yadav, head of investment products at Sanctum Wealth.
'With valuations running hot, the market's on a tightrope-any earnings stumble this quarter could shake sentiment,' Yadav said.
The Nifty and Sensex are about 3% below record highs hit on September 27, 2024.
Among stocks, Indus Towers dropped 3.9% after a Macquarie downgrade, citing slower growth ahead. Eureka Forbes rose 2.4% after partnering with Dixon Technologies to produce robotic vacuum cleaners.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
Ringgit, rupiah weaken
BENGALURU: Currencies in emerging Asia dipped against the US dollar on Monday, while most regional stock indexes drifted further from their recent highs, as sparse details and confusion on US tariff deadlines and negotiations with major trading partners kept investors on edge. US President Donald Trump's threat of an extra 10% tariff on countries aligning with the 'anti-American policies' of the BRICS group, as well as sending letters to partners threatening about restoring April 2 tariffs exacerbated the risk-averse sentiment. BRICS is a group of emerging economies comprising Brazil, Russia, India and China, with Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates included as members last year. The Indian rupee hit a seven-session low on the day, while its Nifty 50 drifted lower. Thailand's baht slipped 0.7% to its weakest in four sessions, while South Korea's won, the Philippine peso, and the Malaysian ringgit hovered near multi-session lows. An MSCI index tracking emerging market currencies fell 0.3%. The US dollar index nudged higher to 97.219 in Asia afternoon trade, though it remained pinned around multi-year lows against the euro and the Swiss franc. Asian countries, heavily dependent on imports from China and US investments and businesses, are caught in an escalating trade war between the world's top two economies. They 'face an increasingly complex balancing act between maintaining US market access and Chinese investment flows, complicated by heavy dependence on Chinese intermediate goods and insufficient local supply chain alternatives,' analysts at Nomura wrote.
Business Recorder
2 hours ago
- Business Recorder
Goldman Sachs lifts S&P 500 return forecasts on Fed outlook, large-cap stocks
SINGAPORE: Goldman Sachs has raised its three-, six- and 12-month return forecasts for the S&P 500, citing expectations of U.S. interest rate cuts and continued fundamental strength of major large-cap stocks as key drivers of its positive outlook. The Wall Street bank has revised its S&P 500 return forecasts, projecting a 3% gain over three months and an 11% gain over 12 months, targeting index levels of 6,400 and 6,900, respectively. 'Earlier and deeper Fed easing and lower bond yields than we previously expected, continued fundamental strength of the largest stocks, and investors' willingness to look through likely near-term earnings weakness support our revised S&P 500 forward P/E forecast of 22 times from 20.4 times,' analysts said in a note late on Monday. For the index's six-month return, Goldman Sachs has raised its forecast to +6%, projecting a year-end level of 6,600, and up from its previous estimate of 6,100. Wall Street closed at record highs last week, buoyed by signs of resilience in the country's labour market, which defied investor fears of a slowing economy. After a selloff in April following U.S. President Donald Trump's 'Liberation Day' tariff announcements, stocks have rebounded as hopes for trade deals and potential Federal Reserve rate cuts eased investor uncertainty. 'Recent inflation data and corporate surveys indicate less tariff pass-through so far than we expected,' the analysts said. 'However, we expect the digestion of tariffs to be a gradual process, and large-cap companies appear to have some buffer from inventories ahead of the increase in tariff rates.' The analysts maintained their earnings-per-share growth forecasts for the S&P 500 at +7% for both 2025 and 2026, but flagged that risks remain on both the upside and downside. They plan to reassess these estimates following the second-quarter earnings season.
Business Recorder
2 hours ago
- Business Recorder
Gold holds ground as investors assess US tariff hike
Gold held steady on Tuesday after U.S. President Donald Trump unveiled higher tariffs on imports from Japan, South Korea, and other nations, while a firm dollar and higher Treasury yields limited potential gains. Spot gold was steady at $3,334 per ounce, as of 0220 GMT. U.S. gold futures remain unchanged at $3,344.20. On Monday, Trump began telling trade partners that sharply higher U.S. tariffs would start on August 1, marking a new phase in the trade war he launched earlier this year, with tariffs on goods from Japan and South Korea set at 25%. Trump said the August 1 deadline for implementing the tariffs was firm but that he would consider extensions if countries made proposals. 'Reciprocal tariffs' were capped at 10% until July 9 to allow for negotiations, but only agreements with Britain and Vietnam have been reached so far. 'Trump's latest tariff letters are keeping gold in the frame for investors as an uncertainty hedge, but a resilient U.S. dollar and higher bond yields are constraining the metal's immediate upside potential,' KCM Trade Chief Market Analyst Tim Waterer said. Gold falls as dollar firms after tariff deadline extension The yield on benchmark U.S. 10-year notes hovered near a two-week high, while the U.S. dollar index steadied after reaching a one-week high in the prior session. Higher yields increase the opportunity cost of holding non-yielding bullion, while a stronger dollar raises gold's cost for holders of other currencies. 'Traders seem relatively unfazed by Trump's tariff letters, and with safe-haven demand largely contained at this point, gold is still just biding its time waiting for a topside breakout to potentially occur,' Waterer said. Trump's tariff policies have stoked inflation fears, further complicating the Federal Reserve's path to lower interest rates. Minutes of the Fed's June meeting, expected on Wednesday, should offer more clues into the central bank's policy outlook. Spot silver edged down 0.1% to $36.78 per ounce, platinum rose 0.6% to $1,379.29 and palladium gained 1% to $1,170.46.
