Markets trade higher in early deals tracking rally in Asian peers
Japan securing a trade deal with the U.S. propelled a rally in Asian markets, which in turn added to optimistic trend in domestic equities, an expert said.
The 30-share BSE Sensex climbed 288.64 points to 82,475.45 in initial trade. The 50-share NSE Nifty went up by 88.95 points to 25,149.85.
From the Sensex firms, Tata Motors, Maruti, Eternal, Mahindra & Mahindra, Adani Ports and Bharti Airtel were among the biggest gainers.
However, Titan, State Bank of India, HDFC Bank and Hindustan Unilever were among the laggards.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng traded in positive territory.
"Asian cues are positive due to Japan securing a trade deal with the U.S.," Akshay Chinchalkar, Head of Research, Axis Securities, said.
The US markets ended mostly higher on Tuesday.
"The 11th new record high for 2025 set by S&P 500 yesterday is an indication of the direction and resilience of equity markets globally. Markets are climbing all walls of worries and valuation concerns have been put on the back burner. In the near-term this resilience is likely to continue," V.K. Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
A significant takeaway from the early Q1 results is the improving prospects of banking and digital stocks. Q1 results of Eternal and Paytm indicate steady growth potential of the digital stocks which have a long runway of growth, he added.
US President Donald Trump has announced a trade deal with Japan, with a 15 per cent tax on goods imported from that nation.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹3,548.92 crore on Tuesday, according to exchange data. Domestic Institutional Investors (DIIs) bought stocks worth ₹5,239.77 crore in the previous trade.
Global oil benchmark Brent crude climbed 0.23% to $68.75 a barrel.
On Tuesday, the Sensex ended 13.53 points or 0.02% down at 82,186.81. The Nifty dipped 29.80 points or 0.12% to settle at 25,060.90.
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JLR margin math wobbles on twin hit from China tax, EU-US trade deal move
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Now, analysts are warning that these latest trade and policy shifts risk derailing the company's already modest FY26 guidance of 5-7% earnings before interest and tax (EBIT) margin. JLR had banked on reduced tariffs on exports from its Slovakia plant to the US, but that scenario may now be overtaken by events. The EU, which is finalizing a trade deal with the US for lower tariffs, has proposed that auto firms that have manufacturing in that country and export from there should be given some relaxation from 25% tariffs on imports. 'The two combined geopolitical headwinds pose a downward risk to the company's FY2026 guidance of 5-7% EBIT margin, which had only factored in lower tariffs on its exports from Slovakia to the US after the EU-US trade deal," analysts at Kotak Institutional Equities wrote in a 21 July note. Agreeing with a possible near-term pressure on JLR, analysts at Ashika Institutional Equities said in a note on 23 July that the UK-headquartered firm could face challenges on the two fronts, given the latest developments. 'Both developments present strategic challenges for JLR. In China, pricing pressure from new taxes could impact high-end model sales, while in the West, the absence of US manufacturing limits JLR's ability to benefit from policy support, thereby increasing its relative vulnerability in key export markets," the Kotak note said. JLR rivals' BMW and Mercedes stand to benefit the most if EU's proposal is accepted by US as they have plants in the country, from where they export elsewhere. JLR has manufacturing plants in the UK and Slovakia in Europe. In India, it has an assembly plant in Pune, where it assembles several models like Range Rover, Range Rover Sport, Velar, Discovery and Evoque. 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'In JLR, discontinuance of 'Jaguar' ICE models, loss of market share in the China region and imposition of tariffs in the US shall lead to volume contraction ahead," Nuvama Institutional Equities had said in a note on 16 June. The company has acknowledged that its free cash flow will reduce to nearly nil in the current financial year. With the company looking to tackle the negative effects of various headwinds world over, it expects to end the current fiscal year with nil free cash flows. However, the management had earlier said the impact could have been even worse and the measures being implemented to offset the hit are leading to savings. 'The tariff impact will be primarily on Jaguar Land Rover. Tariff has gone up from 2.5% to 27.5%, and under the UK-US FTA, the tariff is 10%. The overall impact would have been 1.6 billion pounds," Tata Group Chairperson N. Chandrasekaran told shareholders at Tata Motors' annual general meeting on 20 June. 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Best stock recommendations today: MarketSmith India's top picks for 24 July
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