Indian equity benchmarks erased early gains to end near the flat lines on Friday, due to selling pressure in IT and FMCG sectors. After making a positive start, soon markets turned negative, as sentiments remained down-beat following exchange data showing that Foreign Institutional Investors (FIIs) offloaded equities worth Rs 106.34 crore on Thursday. In the late afternoon session, indices recovered from the day’s lows points, but markets ultimately settled near the neutral lines.

Some of the important factors in trade:

India's exports during FY26 would be higher than FY25: Some support came as Union Minister Piyush Goyal said that India's exports during the current financial year would be higher than 2024-25, while asserting the government is working at a fast pace for diversification of outbound shipments.

ALEMAI seeks review of import duties, free trade pacts to offset US tariff impact: Traders took note of Aluminium extrusion manufacturers' body ALEMAI (Aluminium Extrusion Manufacturers Association of India) has said that the government needs to look at import duties, free trade pacts, and policies that promote domestic consumption so as to mitigate impacts of US tariffs.

GST reforms to strengthen India's clean-energy transition: Traders took some support as Union Environment Minister Bhupender Yadav has described the government's overhaul of the Goods and Services Tax (GST) as a historic Diwali gift that will strengthen India's clean-energy transition.

Global front: European markets were trading in green after U.K. retail sales rose by 0.6 percent in July against expectations of 0.2 percent, as shoppers splashed out on clothing and footwear. Asian markets ended in green amid Japan's leading index increased for the second straight month in July to the highest level in four months.

The BSE Sensex ended at 80710.76, down by 7.25 points or 0.01% after trading in a range of 80321.19 and 81036.56. There were 14 stocks advancing against 16 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was down by 0.10%, while Small cap index up by 0.09%. (Provisional)

The top gaining sectoral indices on the BSE were Auto up by 1.30%, Telecom up by 0.96%, Metal up by 0.71%, Consumer Discretionary up by 0.60% and Energy up by 0.20%, while IT down by 1.25%, FMCG down by 1.22%, Realty down by 1.07%, TECK down by 0.70% and Industrials down by 0.28% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Mahindra & Mahindra up by 2.34%, Maruti Suzuki up by 1.70%, Power Grid Corp up by 1.21%, Reliance Industries up by 1.11% and Bharti Airtel up by 0.84%. On the flip side, ITC down by 2.01%, HCL Technologies down by 1.55%, TCS down by 1.53%, Tech Mahindra down by 1.43% and Infosys down by 1.29% were the top losers. (Provisional)

Meanwhile, Automotive Tyre Manufacturers' Association (ATMA) has said that the cut in Goods and Services Tax (GST) rates on tyres will help bring down vehicle operating costs, which in turn reduces overall logistics expenses in the economy. Welcoming the GST Council's decision to reduce the rate on tyres to 18 per cent from 28 per cent, it also said the step will make tyres more affordable for users across all segments and contribute positively to road safety by encouraging timely tyre replacement and maintenance.

ATMA said the long-awaited move will make tyres more affordable for users across all segments and contribute positively to road safety by encouraging timely tyre replacement and maintenance. It noted that tyres are a critical component of mobility and are used across the entire spectrum of vehicles - trucks and buses, passenger cars, two- and three-wheelers, tractors, construction equipment, and mining vehicles.

The tyre industry body stated that the earlier GST rate of 28 per cent placed tyres in the highest tax slab, at par with luxury or demerit goods, even though tyres are an essential requirement for transportation, agriculture, and logistics. The reduction will provide much-needed relief to consumers and industry alike. Moreover, the reduction in GST rates on tyres will support road safety as high prices often discourage vehicle owners from timely tyre replacement, leading to extended use of worn-out tyres, which is a known risk factor for accidents. With the tax burden eased, tyre affordability will improve, encouraging motorists and fleet operators to replace tyres at the right time, thereby enhancing vehicle and passenger safety on roads.

The CNX Nifty ended at 24741.00, up by 6.70 points or 0.03% after trading in a range of 24621.60 and 24832.35. There were 27 stocks advancing against 23 stocks declining on the index. (Provisional)

The top gainers on Nifty were Eicher Motors up by 2.42%, Mahindra & Mahindra up by 2.29%, Maruti Suzuki up by 1.59%, Power Grid Corp up by 1.26% and Dr. Reddy's Lab up by 1.21%. On the flip side, ITC down by 2.06%, HCL Technologies down by 1.68%, Cipla down by 1.55%, TCS down by 1.53% and Tech Mahindra down by 1.50% were the top losers. (Provisional)

European markets were trading higher; Germany’s DAX gained 73.17 points or 0.31% to 23,843.50 UK’s FTSE 100 increased 23.43 points or 0.25% to 9,240.30 and France’s CAC rose 11.58 points or 0.15% to 7,710.50.

Asian markets ended higher on Friday following positive cues from the US markets overnight. Sentiments got boost after U.S. President Donald Trump signed an executive order formalizing a lower Japanese auto import tariff of 15%, down from 27.5%. Chinese market ended higher following reports that the country's financial regulators are considering a number of cooling measures for the stock market. On the economic data front, Japan's leading index increased for the second straight month in July to the highest level in four months, preliminary data from the Cabinet Office showed. The leading index, which measures future economic activity, rose to 105.9 in July from 105.1 in June. That was in line with expectations. Meanwhile, stock markets of Indonesia and Malaysia were closed for trading on account of Mawlid-al-Nabi holiday.