Indian equity benchmark continued to trade well above the unchanged line in late trade buoyed by Foreign Institutional investors’ (FIIs) fund inflow. The FIIs were the net buyer in yesterday’s trade with net buying of Rs 12,594.38 crore. Besides, President Trump’s recent statement on trade deal with India has kept the sentiments upbeat and raised optimism over possible trade between US and India. President Donald Trump said America is going to have a very big trade deal with India. 

On the global front, Asian equity markets are trading mixed despite U.S. President Donald Trump announcing a trade deal with China on rare earths. European equity markets were trading higher as France's overall inflation rate remained below the 2 percent target. Back home, the Mid cap and Small cap indices have outshined the Sensex and Nifty to trade up by 0.47% and 0.67%, respectively.

The BSE Sensex is currently trading at 83944.67, up by 188.80 points or 0.23% after trading in a range of 83645.41 and 84047.67. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged 0.47%, while Small cap index was up by 0.67%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.28%, Power up by 1.19%, Energy up by 1.15%, Basic Materials up by 1.10% and Utilities up by 1.10%, while Realty down by 1.33%, IT down by 0.28% and TECK down by 0.07% were the few losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 2.40%, Power Grid Corporation of India up by 1.70%, Ultratech Cement up by 1.55%, Reliance Industries up by 1.41% and Adani Ports & SEZ up by 1.09%. On the flip side, Bajaj Finance down by 1.18%, Trent down by 1.13%, Eternal down by 1.11%, Tech Mahindra down by 0.94% and Axis Bank down by 0.83% were the top losers.

Meanwhile, an article published in the Reserve Bank of India's (RBI) June Bulletin has said that all banks should bring down their lending rates for speedy transmission of the policy rate, which was lowered by 50 basis points earlier this month. The article stressed that the financial conditions remained conducive to facilitating an efficient transmission of rate cuts. Most of the banks have already passed on the rate cuts announced in February and April to their customers.

It stated that besides reducing the repo rate by 50 bps earlier this month, the RBI had announced a reduction in the cash reserve ratio (CRR) by 100 bps to 3 per cent of net demand and time liabilities (NDTL) in a staggered manner during the latter half of the year. It said financial conditions remained conducive to facilitate an efficient transmission of rate cuts to the credit market. The reduction in CRR would release primary liquidity of about Rs 2.5 lakh crore into the banking system by December 2025. Besides providing durable liquidity, it will reduce the cost of funds for banks, thereby facilitating monetary policy transmission to the credit market.

The article noted that the 50-bps cut in the policy repo rate during February-April 2025 reflected in banks' repo-linked external benchmark-based lending rates (EBLRs) and marginal cost of funds-based lending rate (MCLR). Consequently, the weighted average lending rate (WALR) on fresh and outstanding rupee loans of banks declined by 6 bps and 17 bps, respectively, during the period February-April 2025. On the deposit side, the weighted average domestic term deposit rates (WADTDRs) on fresh and outstanding deposits moderated by 27 bps and 1 bp, respectively, during the same period. However, the central bank said that the views expressed in the Bulletin article are those of the authors and do not represent the views of the Reserve Bank of India.

The CNX Nifty is currently trading at 25614.15, up by 65.15 points or 0.26% after trading in a range of 25523.55 and 25649.35. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 3.64%, Jio Financial Services up by 3.47%, Indusind Bank up by 2.98%, Asian Paints up by 2.47% and Apollo Hospitals Enterprise up by 1.87%. On the flip side, Trent down by 1.42%, Dr. Reddy's Laboratories down by 1.32%, Wipro down by 1.09%, Bajaj Finance down by 1.05% and Tata Consumer Products down by 1.04% were the top losers.

Asian markets are 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 rose 19.99 points or 0.51% to 3,958.45, while Hang Seng declined 41.25 points or 0.17% to 24,284.15, KOSPI dropped 23.62 points or 0.77% to 3,055.94 and Shanghai Composite weakened 24.22 points or 0.71% to 3,424.23.

European markets were trading higher; UK’s FTSE 100 increased 47.39 points or 0.54% to 8,782.99, France’s CAC rose 101.63 points or 1.33% to 7,658.94 and Germany’s DAX gained 191.39 points or 0.8% to 23,840.69.