By Reuters
India鈥檚 equity benchmark indexes were flat on Tuesday, as heavyweight financials came off after a four-month rally, while investors awaited progress in trade talks with the United States ahead of a looming July 9 tariff deadline.
The Nifty 50 rose 0.11% to 25,546.75 points and the BSE Sensex added 0.16% to 83,738.92 as of 10:43 a.m. IST.
The MSCI Asia ex-Japan index rose 0.5%, on hopes that negotiations between the US and key trading partners were gaining momentum, after Canada鈥檚 decision to withdraw its digital services tax on US tech firms.
Indian officials will extend their US visit to try to reach an agreement on a trade deal with the Trump administration and address lingering concerns on both sides, Reuters reported on Monday, citing two Indian government sources.
The countries aim to tie up an early trade deal. India鈥檚 equity benchmarks could falter if an India-US trade deal is delayed, given stretched valuations after a 15% rally over the past four months, three analysts said.
鈥淒omestic sentiment remains vulnerable with the 90-day US tariff reprieve nearing its end,鈥 said Mahendra Patil, founder and managing director of MP Financial Advisory Services.
The broader small-caps and mid-caps fell 0.1% and 0.2%, respectively. Financials inched 0.3% lower, easing for the second session after hitting a record high on Friday.
State-owned banks lost 0.75%, after jumping 5.3% in the previous five sessions.
Apollo Hospitals rose 3.1% after it unveiled plans to spin off and separately list its digital health and pharmacy unit within 18 to 21 months.
India鈥檚 equity benchmarks ease as financials retreat from record highs
Sigachi Industries lost 5.4%, extending Monday鈥檚 12% plunge, after a deadly fire at its Telangana facility killed at least 39 people.
Dixon Technologies slipped 3.1% after Morgan Stanley downgraded the electronic manufacturing services provider to 鈥渦nderweight鈥 from 鈥渆qual-weight,鈥 citing the risk of slowing earnings growth.