Indian markets traded at day’s high levels in early afternoon session as traders preferred to buy fundamental strong stocks. Besides, de-escalation of tensions in the Middle East improved the investors’ sentiments. Traders were looking forward to HSBC Manufacturing PMI Final data, which going to be out on July 01. Traders took note of report that Union Minister Nitin Gadkari has said that India will become the net exporter of energy in next six to seven years. He noted that ‘Today we are the importer of the energy but within six to seven years we will be exporter of the energy’. Stressing that hydrogen is the fuel of the future, he said the government is encouraging alternative fuel and biofuel such as ethanol, biodiesel, electric vehicles, and hydrogen.

On the global front, Asian markets were trading mixed as China industrial profits declined notably in May as tariff tensions damped activity. Industrial profits decreased 9.1 percent in May from a year ago. In the January to May period, industrial profits declined 1.1 percent from the same period last year. 

The BSE Sensex is currently trading at 83949.76, up by 193.89 points or 0.23% after trading in a range of 83645.41 and 83985.09. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.55%, while Small cap index was up by 0.63%.

The top gaining sectoral indices on the BSE were Energy up by 1.33%, Oil & Gas up by 1.32%, Power up by 1.31%, Utilities up by 1.23% and Capital Goods was up by 0.87%, while Realty down by 1.16% was the only losing index on BSE.

The top gainers on the Sensex were Power Grid up by 1.77%, Asian Paints up by 1.70%, Reliance Industries up by 1.52%, Larsen & Toubro up by 1.16% and Adani Ports up by 1.02%. On the flip side, Bajaj Finance down by 1.40%, Bajaj Finserv down by 1.14%, Eternal down by 1.00%, Axis Bank down by 0.92% and Trent down by 0.78% were the top losers.

Meanwhile, Indian team, headed by chief negotiator Rajesh Agarwal, has reached Washington for the next round of trade talks with his US counterparts. The visit is important as both the countries are engaged in negotiations for an interim trade deal and are trying to finalise the pact before July 9, though there are challenges in areas like agriculture and dairy. The Indian team is in Washington for two-day trade talks.

The high tariffs, announced by the US on April 2, were suspended by the Trump administration till July 9. On April 2, the US imposed an additional 26 per cent reciprocal tariff on Indian goods but suspended it for 90 days. However, the 10 per cent baseline tariff imposed by America remains in place. India is seeking full exemption from the additional 26 per cent tariff.

Agriculture and dairy sectors are difficult and challenging areas for India to give duty concessions to the US. India has not opened up dairy in any of its free trade pacts signed so far. The US wants duty concessions on certain industrial goods, automobiles- especially electric vehicles, wines, petrochemical products, dairy, and agricultural items like apples, tree nuts, and genetically modified crops. India is seeking duty concessions for labour-intensive sectors like textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas in the proposed trade pact.

The two countries are looking to conclude talks for the first tranche of the proposed bilateral trade agreement (BTA) by fall (September-October) this year. The pact is aimed at more than doubling bilateral trade to $500 billion by 2030 from the current $191 billion. Before the first tranche, they are trying for an interim trade pact. The US team was here from June 5 to June 11 for the talks. The negotiations will continue both virtually and physically in the days to come.

The CNX Nifty is currently trading at 25628.40, up by 79.40 points or 0.31% after trading in a range of 25523.55 and 25632.50. There were 29 stocks advancing against 20 stocks declining on the index, while 1 stock remained unchanged.   

The top gainers on Nifty were JIO Financial up by 4.54%, Indusind Bank up by 3.45%, Adani Enterprises up by 2.00%, Power Grid up by 1.75% and Asian Paints up by 1.74%. On the flip side, Bajaj Finance down by 1.42%, Dr. Reddy's Lab down by 1.03%, Bajaj Finserv down by 1.03%, Eternal down by 0.98% and Cipla down by 0.97% were the top losers.

Asian markets were trading mixed; Nikkei 225 surged 566.21 points or 1.41% to 40,150.79, Taiwan Weighted added 87.74 points or 0.39% to 22,580.08 and Straits Times was up by 20.48 points or 0.52% to 3,958.94. On the flip side, KOSPI dropped 23.62 points or 0.77% to 3,055.94, Shanghai Composite weakened 24.74 points or 0.72% to 3,423.71 and Hang Seng was down by 77.76 points or 0.32% to 24,247.64.