The headline equity benchmarks erased all early gains and traded with slight losses in mid-afternoon trade, as investors remained cautious ahead of the anticipated India-US trade deal. The Nifty slipped below the 25,450 mark.

Media shares advanced after declining in past two consecutive trading sessions.

At 14:30 IST, the barometer index, the S&P BSE Sensex shed 13.16 points or 0.02% to 83,394.76. The Nifty 50 index lost 29.10 points or 0.12% to 25,424.30.

In the broader market, the S&P BSE Mid-Cap index shed 0.01% and the S&P BSE Small-Cap index jumped 0.45%.

The market breadth was positive. On the BSE, 2,023 shares rose and 1,914 shares fell. A total of 179 shares were unchanged.

Economy:

The seasonally adjusted HSBC India Services PMI Business Activity Index rose to 60.4 in June 2025 against 58.8 in May 2025. Monitored companies linked the upturn to positive demand trends and ongoing improvements in sales. Indian service providers ended the first fiscal quarter on strong footing.

Output and new order intakes rose at the fastest rates since August 2024, aided by another robust expansion in international sales and job creation. New orders expanded at the quickest rate since August 2024. Services companies benefited most from the continued strength of the domestic market, alongside a marked increase in new export business.

The HSBC India Composite PMI Output Index rose from 59.3 in May to 61.0, indicating the fastest rate of expansion in 14 months. Growth quickened at both manufacturers and service providers.

India-US trade deal update:

As per media reports, India and the United States will likely finalise a 'mini trade deal' within the next 48 hours, with negotiations underway in Washington, DC.

India and the US are actively engaged in trade negotiations as the July 9 deadline looms. If a deal is not reached by then, Indian exports to the US could face a total tariff of 36% (10% baseline tariffs plus 26% reciprocal tariffs). Trump has indicated that the deadline may not be extended.

Buzzing Index:

The Nifty Media index rose 0.93% to 1,741.20. The index fell 1.67% in two consecutive trading sessions.

Nazara Technologies (up 2.57%), PVR Inox (up 1.59%), Saregama India (up 1.34%), Zee Entertainment Enterprises (up 1.01%), Network 18 Media & Investments (up 0.67%), Dish TV India (up 0.20%) and Hathway Cable & Datacom (up 0.06%) advanced.

Numbers to Track:

The yield on India's 10-year benchmark federal paper added 0.02% to 6.289 from the previous close of 6.288.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.3250 compared with its close of 85.6200 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement shed 0.04% to Rs 97,325.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.01% to 96.44.

The United States 10-year bond yield lost 0.84% to 4.254.

In the commodities market, Brent crude for September 2025 settlement fell 61 cents or 0.88% to $68.50 a barrel.

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