Indian markets traded flat with positive basis in early afternoon session amid volatility. Gains were limited as investors were cautious about Trump’s tariff policy. US President Donald Trump imposed 50% tariff on copper imports, while threatening to slap 200% tariff on pharmaceutical products. Besides, Q1 result from Tata Consultancy Services going to be out tomorrow.  However, markets managed to trade in green as traders took some support with Regional PF Commissioner-I Randhir Kumar of Employees' Provident Fund Organisation (EPFO) stated that the Employment Linked Incentive (ELI) announced in the budget for 2024-25 with an outlay of Rs 1 lakh crore, will promote job creation and provide social security. 

On the global front, Asian markets were trading mostly in green as Consumer prices in China were down a seasonally adjusted 0.1 percent on month in June. That missed expectations for a flat reading following the 0.2 percent contraction in May. On a yearly basis, inflation rose 0.1 percent - exceeding expectations for a decline of 0.1 percent, which would have been unchanged from the previous month.

The BSE Sensex is currently trading at 83753.82, up by 41.31 points or 0.05% after trading in a range of 83519.41 and 83769.84. 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 0.09%, while Small cap index was up by 0.51%.

The top gaining sectoral indices on the BSE were FMCG up by 0.80%, Consumer Durables up by 0.50%, Auto up by 0.49%, Capital Goods up by 0.42% and Utilities was up by 0.39%, while Metal down by 1.73%, Realty down by 1.04%, IT down by 0.65%, Basic Materials down by 0.58% and Oil & Gas was down by 0.52% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 1.52%, Bajaj Finance up by 1.25%, Maruti Suzuki up by 0.72%, Reliance Industries up by 0.69% and ITC up by 0.68%. On the flip side, Tata Steel down by 2.13%, HCL Tech down by 1.64%, Larsen & Toubro down by 0.81%, Infosys down by 0.65% and ICICI Bank down by 0.65% were the top losers.

Meanwhile, auto component makers are hopeful that India will soon seal a trade deal with the US, which is the single-largest market for Indian manufacturers. The government has been regularly consulting with the auto components industry amid the ongoing talks for an interim trade deal between India and the US. The comments have come against the background of the US suspending reciprocal tariffs until August 1, 2025. The earlier deadline was ending on July 9, 2025. 

Automotive Component Manufacturers Association of India (ACMA) Director General Vinnie Mehta has said ‘our name is not in the list of the 14 countries, and we are hopeful that, you know, they would be able to sort of come out with a deal.’ He also said ‘I do not have any insights into what would be the contours of the deal. It may be a truncated one, but then there would be a second phase also. That's what I understand.’ He noted that the government has been regularly consulting with the auto parts industry on the proposed deal, while adding that the people on the other side are not so easy.

North America is the largest export market for the auto component industry and accounted for 32 per cent of the overall auto component exports in FY25. The market witnessed a growth of 8 per cent as compared with the last fiscal. Overall, auto component exports grew by 8 per cent to $22.9 billion (Rs 1,92,346 crore) in FY 2024-25 as compared with $21.2 billion (Rs 1,75,960 crore) in FY 2023-24. 

The CNX Nifty is currently trading at 25537.25, up by 14.75 points or 0.06% after trading in a range of 25472.05 and 25548.70. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Shriram Finance up by 1.89%, Hindustan Unilever up by 1.56%, JIO Financial up by 1.35%, Bajaj Finance up by 1.25% and Maruti Suzuki up by 0.80%. On the flip side, Tata Steel down by 2.17%, Hindalco down by 1.98%, HCL Tech down by 1.59%, Wipro down by 1.06% and HDFC Life Insurance down by 0.90% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted added 164.74 points or 0.73% to 22,527.01, Nikkei 225 surged 132.47 points or 0.33% to 39,821.28, Jakarta Composite gained 26.91 points or 0.39% to 6,931.30, KOSPI increased 18.79 points or 0.6% to 3,133.74 and Straits Times was up by 5.17 points or 0.13% to 4,053.03. On the flip side, Shanghai Composite weakened 4.06 points or 0.12% to 3,493.42 and Hang Seng was down by 318.85 points or 1.32% to 23,829.22.