The benchmark indices had snapped their two-day losing streak to close higher on July 4, 2025.
The Sensex had closed 193.42 points or 0.23 per cent higher at 83,432.89, and the Nifty 50 had gained 55.70 points or 0.22 per cent higher at 25,461. However, during the week, the Sensex and the Nifty had declined 0.74 per cent and 0.69 per cent, respectively.
The broader market indices last week outperformed the benchmark indices. The Nifty Smallcap 100 index climbed 0.30 per cent, and the Nifty Midcap 100 surged nearly 0.50 per cent.
India-US Trade Deal
As the July 9 tariff pause deadline approaches, a trade deal between India and the US is expected to be announced soon. July 9 serves as the end of the 90-day suspension period for US President Donald Trump’s tariffs, which he had announced on April 2. He had imposed a 26 per cent tariff on Indian exports at that time. If the trade negotiations fail to make a cut, this 26 per cent tariff is likely to be reinstated.
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According to a CNBC-TV18 report, a mini-trade deal is expected to be announced within the next 24-48 hours. This deal is expected to lower the average tariff to around 10 per cent. A more comprehensive Bilateral Trade Agreement (BTA) is expected to begin after July 9, the report said.
Meanwhile, US Treasury Secretary Scott Bessent said that the July 9 deadline could further extend to August 1 if the proposed bilateral trades are not reached.
BRICS Summit 2025
The BRICS bloc met in Rio de Janeiro on July 6 and is set to sit for another round today. The group collectively condemned the increase in tariffs and the attacks on Iran. BRICS leaders also condemned the April 22 terror attack in Jammu and Kashmir’s Pahalgam.
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Prime Minister Narendra Modi also met Cuban President Miguel Diaz-Canel Bermudez on the sidelines of the 17th BRICS Summit to discuss strengthening bilateral ties, particularly in areas like pharmaceuticals, biotechnology, traditional medicine, and digital infrastructure.
Modi also held talks with Malaysian Prime Minister Anwar bin Ibrahim to review progress in trade, investment, defence, education, healthcare, and tourism. Ibrahim had made a state visit to India in August 2024.
Crude Oil Prices
OPEC+ announced on July 5 that it will increase oil production by 548,000 barrels per day (bpd) in August, slightly more than the previous monthly hikes of 411,000 bpd. This led to a decline in crude oil prices.
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The Brent Crude Futures slipped around 0.72 per cent to trade around $67.81 per barrel and the WTI Crude Futures dipped 0.68 per cent to quote around $66.05 per barrel.
For India, one of the world’s largest oil importers, the dip in crude prices is seen as a positive development.
Asian Markets Update
Asian markets slipped in early trade on July 7 amid the uncertainty around the Trump administration's tariffs. The US is close to finalising trade deals with several of its trading partners. However, no concrete details have been announced yet, leading investors to assume a cautious approach.
The Hang Seng slipped 0.45 per cent, China’s SSE Composite was down 0.21 per cent, and Japan’s Nikkei 225 was lower by 0.36 per cent. However, South Korea’s KOSPI was up by 0.27 per cent.
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US Markets Update
In the US, benchmark indices closed at record levels as a surprisingly strong US jobs report cheered investors, allowing them to look past the fading hopes of an interest rate cut this month. The jobs data showed that non-farm jobs increased by 147,000 in June, while the unemployment rate fell to 4.10 per cent.
The S&P 500 gained 51.94 points, or 0.83 per cent, to close at 6,279.36. The Nasdaq Composite surged by 207.97 points, or 1.02 per cent, ending at 20,601.10. Meanwhile, the Dow Jones Industrial Average climbed 344.11 points, or 0.77 per cent, closing at 44,828.53.
