Indian equity benchmarks were trading flat with negative bias in morning deals, amid caution ahead of the U.S. tariff deadline, weak trends in Asian markets and foreign fund outflows. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 760.11 crore on Friday, according to exchange data. Some concern also came as Economic think tank GTRI cautioned that allowing genetically modified (GM) farm products from the US under the proposed trade pact would have implications for India as it may affect the country's agri exports to regions like the European Union. Sector-wise, auto stocks remained in watch as Federation of Automotive Dealers Associations (FADA) said automobile retail sales in India rose around 5 per cent year-on-year in June with all vehicle segments, including passenger vehicles and two-wheelers, witnessing growth. On the global front, Asian markets are trading mostly in red as fresh confusion over the US tariff policy weighed on investor sentiment. 

The BSE Sensex is currently trading at 83363.97, down by 68.92 points or 0.08% after trading in a range of 83262.23 and 83516.82. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index rose 0.02%, while Small cap index was down by 0.13%.

The top gaining sectoral indices on the BSE were FMCG up by 1.09%, Utilities up by 0.62%, Oil & Gas up by 0.49%, Consumer Durables up by 0.42% and Energy up by 0.41%, while Telecom down by 0.99%, Basic Materials down by 0.46%, Metal down by 0.36%, Capital Goods down by 0.35% and IT down by 0.32% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 2.06%, Asian Paints up by 1.16%, NTPC up by 0.86%, ITC up by 0.72% and Reliance Industries up by 0.61%. On the flip side, Bharat Electronics down by 1.94%, Tech Mahindra down by 1.21%, Maruti Suzuki down by 1.11%, Eternal down by 0.98% and Ultratech Cement down by 0.92% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that the free trade agreement (FTA) between India and the four-nation European bloc EFTA (European Free Trade Association) is likely to come into force in the next couple of months.  The two sides signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024. Under the pact, India has received an investment commitment of $100 billion in 15 years from the grouping while allowing several products such as Swiss watches, chocolates, and cut and polished diamonds at lower or zero duties.

The European Free Trade Association members are Iceland, Liechtenstein, Norway, and Switzerland. Talking about the government's initiative to promote manufacturing of quality products in the country, he said in the last 10 years, 156 quality control orders (QCOs) covering 672 products have been issued to cut import of sub-standard goods into the country. Till 2014, only 14 such orders covering 156 products were issued. He said that huge opportunities are there for testing, inspection and certification business in India. 

He stated ‘We focused on high quality product manufacturing and it will help capture global markets’. He added India's exports growth demonstrates the country's good quality of goods and services that India offers to the rest of the world. He also said that the government is gradually promoting third-party certification. Besides, he suggested the industry identify areas where testing is required so that the government can set up more testing labs and appealed to larger industry bodies to support MSMEs in upgrading the quality of their products.

The CNX Nifty is currently trading at 25435.40, down by 25.60 points or 0.10% after trading in a range of 25407.25 and 25489.80. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Hindustan Unilever up by 2.20%, Asian Paints up by 1.32%, Eicher Motors up by 0.84%, JIO Financial Services up by 0.82% and NTPC up by 0.75%. On the flip side, Bharat Electronics down by 2.00%, Eternal down by 1.24%, Maruti Suzuki down by 1.23%, Tech Mahindra down by 1.14% and Hindalco down by 1.12% were the top losers. 

Asian markets are trading mostly in red; Nikkei 225 slipped 229.95 points or 0.58% to 39,580.93, Taiwan Weighted lost 171.05 points or 0.76% to 22,376.45, Hang Seng declined 107.15 points or 0.45% to 23,808.91, Jakarta Composite plunged 9.67 points or 0.14% to 6,855.52 and Shanghai Composite weakened 7.27 points or 0.21% to 3,465.05.

On the flip side, KOSPI increased 8.15 points or 0.27% to 3,062.43 and Straits Times rose 12.19 points or 0.3% to 4,025.81.