India’s equity benchmarks muted as Reliance Industries offsets broader losses

India’s benchmark indexes ended flat on Tuesday, as gains in heavyweight Reliance Industries on solar business optimism offset broader sectoral losses, with investors awaiting cues from U.S. trade talks.

The Nifty 50 rose 0.1% to 25,541.80 points and the BSE Sensex added 0.11% to 83,697.29.

The MSCI Asia ex-Japan index rose 0.5% after Canada dropped its digital services tax on U.S. tech firms—boosting hopes of progress in global trade negotiations.

India could finalize an interim trade deal with the U.S. as early as this week, the Financial Times reported, while Reuters said Indian officials are extending their visit to Washington to resolve outstanding issues.

“Indications of resolution of global trade uncertainties is a major positive for domestic markets and adds to the structural positives such as steady earnings, sustained institutional inflows and policy support from the central bank,” said Nimesh Chandan, chief investment officer at Bajaj Finserv Asset Management.

However, bouts of profit booking are likely in the near term as some investors lock in gains from the 15% rally in benchmarks over the past four months, potentially capping sharp upside ahead of the U.S. tariff deadline on July 9 and the June-quarter earnings season, three analysts said.

India’s equity benchmarks ease as financials retreat from record highs

Seven of the 13 major sectors declined on the day. The broader small-caps and mid-caps were little changed.

Reliance Industries, which is the third highest weighted stock on Nifty, rose 1.9% after Nuvama raised its target price to a Street-high of 1,801 rupees citing improving growth prospects in its new energy segment.

Financials inched 0.2% lower, easing for the second session after hitting a record high on Friday.

Sigachi Industries lost 5.6%, extending Monday’s 12% plunge, after a deadly fire at its Telangana facility killed at least 39 people.

Apollo Hospitals rose 3.5% after unveiling plans to hive off its digital health and pharmacy unit.