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Domestic indices continue to witness weakness in late morning deals
Aug-22-2025

Domestic equity indices continued to witness weakness and were trading lower with cut of over half percent in late morning deals as market participants indulged in reducing their positions. Sentiments were weak as State Bank of India (SBI) in its latest report has said that the intended private capital expenditure (capex) for FY26 is significantly lower than the numbers of FY25, and may decline further amid the impact of US tariffs. Further, depreciation in Indian rupee against dollar also weighed down sentiments. Rupee weakened by 18 paise to 87.43 against the dollar at the Inter-bank Foreign Exchange market on account of increased demand for the American currency from importers and banks. On the BSE sectoral front, traders were seen piling up positions in Capital Goods, Industrials and Healthcare, while selling was witnessed in Metal, FMCG, Bankex, Basic Materials and Utilities.

On the global front, Asian markets were trading mixed as investors awaited U.S. Federal Reserve Chair Jerome Powell’s speech at the central bank’s annual economic symposium, which could offer clues into the path of interest rates. Back home, in the stock specific development, Apollo Micro Systems surged after the company won orders worth Rs 25.12 crore from the Defence Research and Development Organisation (DRDO) & Defence Public Sector Undertakings (PSUs).

The BSE Sensex is currently trading at 81463.63, down by 537.08 points or 0.65% after trading in a range of 81393.18 and 81993.61. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.06%, while Small cap index down by 0.13%.

The few gaining sectoral indices on the BSE were Capital Goods up by 0.50%, Industrials up by 0.16% and Healthcare up by 0.10% while Metal down by 0.90%, FMCG down by 0.85%, Bankex down by 0.84%, Basic Materials down by 0.72% and Utilities down by 0.64% were the top losing indices on BSE.

The top gainers on the Sensex were Bharat Electronics up by 1.03%, Mahindra & Mahindra up by 0.51%, Trent up by 0.47%, Sun Pharma up by 0.42% and Bajaj Finance up by 0.28%. On the flip side, Asian Paints down by 1.83%, Adani Ports down by 1.53%, ITC down by 1.39%, Ultratech Cement down by 1.36% and HCL Technologies down by 1.36% were the top losers.

Meanwhile, Ministry of Labour & Employment’s Labour Bureau has released Consumer Price Index (CPI) Numbers for Agricultural Labourers (AL) and Rural Labourers (RL) for the month of July 2025. The numbers have been calculated taking 2019 as a base year. The inflation rate for Agricultural Labourers and Rural Labourers eased to 0.77% and 1.01%, respectively, over 1.42% and 1.73% in June 2025, respectively. Besides, food prices experienced a deflation in July 2025 with overall food prices declined by 1.56% for AL and 1.13% for RL.

The All-India Consumer Price Index for Agricultural Labourers rose 1.23 points to 135.31 for the month of July 2025, while the index for Rural Labourers increased by 1.30 points, reaching 135.66. For the July 2025, Food Index for Agricultural Labourers grew 1.94 points to 135.69, while it rose 2.16 points to 136.09 for Rural Labourers.

The index for Fuel and Light increased by 0.25 points to 121.88 for AL, while rose 0.43 points to 124.03 for RL in July 2025. For the same period, the Pan Tobacco and Intoxicants index grew marginally for both AL and RL, while index for Clothing and Footwear experienced a decline of 0.37 points to 144.73 for AL and 0.27 points to 145.45 for RL.

The CNX Nifty is currently trading at 24920.70, down by 163.05 points or 0.65% after trading in a range of 24893.10 and 25084.85. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were Bharat Electronics up by 1.10%, Mahindra & Mahindra up by 0.50%, Dr. Reddy's Lab up by 0.44%, Trent up by 0.36% and Sun Pharma up by 0.34%. On the flip side, Grasim Industries down by 2.08%, Asian Paints down by 1.79%, JSW Steel down by 1.67%, Hero MotoCorp down by 1.66% and Adani Enterprises down by 1.62% were the top losers.

Asian markets were trading mixed; Shanghai Composite strengthened 33.79 points or 0.89% to 3,804.89, KOSPI increased 29.15 points or 0.92% to 3,170.89, Hang Seng advanced 61.39 points or 0.24% to 25,166.00 and Straits Times rose 18.33 points or 0.43% to 4,249.23. However, Nikkei 225 slipped 4.17 points or 0.01% to 42,606.00, Taiwan Weighted lost 197.66 points or 0.83% to 23,764.47, Jakarta Composite plunged 2.3 points or 0.03% to 7,888.42.

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