Stock Market Today: Sensex, Nifty Rise on India-US Trade Deal Buzz

Defence stocks rally, auto leads sectoral gains, and mid & small caps shine 

Indian stock markets trade higher today as investor sentiment improves with positive news around a potential India-US trade deal and a long-term defence agreement. Both the BSE Sensex and NSE Nifty show gains during the day as global cues and domestic developments support the market mood. 

Sensex and Nifty Edge Higher 

The BSE Sensex rises by 361 points, or 0.43 per cent, and trades at 83,770.77. At the same time, the NSE Nifty gains 105 points, or 0.41 per cent, to trade around 25,558.3. These gains come as investors react positively to reports that India and the United States are in the final stages of signing a trade agreement, which could help avoid additional tariffs planned by US President Donald Trump from July 9. 

India-US Trade and Defence News Boosts Sentiment 

According to multiple reports, the trade deal discussions aim to resolve key issues before the July 9 tariff deadline. The agreement is expected to help Indian exports and reduce potential strain on sectors like steel and pharmaceuticals that are sensitive to US tariffs. This development lifts overall market confidence and supports buying across sectors. 

In another important update, a report by the Press Trust of India (PTI) says India and the US have agreed to enter into a 10-year strategic partnership in the defence sector. This announcement triggers strong interest in defence-related stocks. Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), Bharat Dynamics, Paras Defence, and MTAR Technologies see gains of up to 1 per cent after the news breaks. Investors appear hopeful that such a deal will lead to increased defence spending and long-term orders for domestic defence companies. 

Top Gainers and Losers on Sensex 

On the other hand, stocks such as Bajaj Finance, Bajaj Finserv, Kotak Mahindra Bank, Trent, BEL, and Titan face selling pressure. Bajaj twins and Kotak Bank see some profit booking after recent rallies, while BEL sees a minor correction despite positive news in the defence space, likely due to short-term investor activity.

Mid- and Small-Cap Stocks Continue to Rise 

The broader market also moves in line with the benchmarks. The Nifty MidCap index increases by 0.39 per cent, while the Nifty SmallCap index gains 0.46 per cent. This steady uptrend in broader markets suggests that investor participation remains healthy across the board, not just in large-cap stocks. 

The broader rally reflects improved risk appetite among investors as they bet on continued growth in domestic consumption and policy support from the government. Traders also remain hopeful that upcoming quarterly earnings will support valuations, especially in the mid-cap segment.

Sectoral Performance Reflects Investor Preferences 

Among sectoral indices, the Nifty Auto index performs the best with a 1 per cent gain. Stocks in the auto space benefit from signs of rising rural demand, easing raw material costs, and improving export opportunities. Automakers are also likely to benefit from the potential trade deal with the US, especially in the electric vehicle segment. 

The Nifty Metal index also rises 0.55 per cent, backed by renewed hopes of global trade easing and strong domestic infrastructure spending. Meanwhile, the Nifty IT index gains 0.47 per cent, supported by a weak rupee and expectations of stable earnings from major software exporters. 

On the flip side, the Nifty PSU Bank index emerges as the top loser, down 0.4 per cent. Public sector banks face mild selling after a sharp run-up in the past few weeks. Investors seem cautious ahead of the June quarter earnings and possible provisioning-related announcements. 

Avenue Supermarts Drops on Q1 Business Update 

Avenue Supermarts, which operates the D-Mart chain, sees its share price fall by over 3 per cent after the company reports its business update for the June quarter. While revenue from operations for Q1FY26 rises to ₹15,932.12 crore from ₹13,711.87 crore in Q1FY25, the stock reacts negatively. Investors appear disappointed with the slower growth momentum compared to earlier quarters. The company’s margins and same-store sales growth remain key concerns for analysts. 

Nykaa Shares Slide on Block Deals 

FSN E-Commerce, which operates under the brand Nykaa, sees its share price decline by 4 per cent after large volumes change hands on the BSE. Reports suggest that pre-IPO investors Harindarpal and Indra Banga are looking to sell a 2.1 per cent stake in the company through block deals. The heavy selling puts pressure on the stock, which has been struggling to maintain investor interest amid tight competition in the beauty and fashion e-commerce space. 

The company, which once attracted strong retail and institutional support, now faces concerns around profitability and slowing growth. The large deal also raises questions about further stake sales by other early investors soon. 

PNB Falls Despite Strong Business Growth 

Punjab National Bank (PNB) sees its stock price fall 1 per cent despite reporting solid business growth numbers for Q1FY26. The bank’s global business increases by 11.6 per cent year-on-year to ₹27.19 trillion. Domestic business also grows by 11.1 per cent to ₹26.16 trillion. Deposits witness strong growth, with global deposits rising 12.8 per cent to ₹15.88 trillion and domestic deposits up 12.2 per cent to ₹15.36 trillion. 

Even with this positive update, the stock fails to sustain gains. This could be due to investor concerns about asset quality, net interest margins, or future provisioning needs. Some analysts believe that the bank may have already priced in most of the recent good news, leading to a “sell on news” reaction. 

Market Outlook for the Coming Days 

Markets trade with cautious optimism as traders await further updates on the India-US trade deal. If the agreement is signed before the July 9 deadline, it may remove a major overhang and lead to further gains in export-oriented sectors. Investors are also watching global cues, including inflation data from the US and Europe, and any developments around central bank interest rate decisions. 

Back home, focus will now shift to the upcoming quarterly results season. The earnings reports for the April-June quarter are expected to start next week. IT companies will be the first to report, and their performance will give an early indication of demand trends across geographies. 

At the same time, foreign institutional investor (FII) activity remains a key factor. FIIs have been net buyers in recent sessions, helping markets hold key support levels. Any change in their stance could influence market direction in the short term.

Final Thoughts 

The Indian stock market sees gains on Thursday as hopes of a trade deal with the US and a strategic defence agreement support investor confidence. While certain stocks like Avenue Supermarts, Nykaa, and PNB face selling pressure due to company-specific developments, broader market sentiment remains positive. 

Investors stay focused on both domestic and international developments. The coming sessions are likely to be driven by geopolitical updates, corporate earnings, and macroeconomic data. For now, the market holds steady, supported by optimism around trade, defence, and strong business growth.