Indian equity markets experienced a significant downturn on Friday, with the Sensex and Nifty50 both declining. Financial stocks, particularly Bajaj Finance, led the sell-off due to concerns over asset quality and broader worries about global cues. Uncertainty surrounding a US-India trade deal and continued selling by foreign investors further contributed to the market s negative performance.

IEX shares: The sell-off led to a surge in trading activity, with 12.77 crore shares worth ₹1,740 crore changing hands—exceeding the total volume of all 16 previous July sessions combined. Notably, 43.75% of the shares traded on the NSE were marked for delivery, signaling significant investor churn.

Phoenix Mills shares rose sharply on Friday after a modest Q1 earnings and announcing a major acquisition. The company will fully acquire its JV with CPP Investments for over Rs 5,449 crore, boosting investor sentiment despite technical indicators showing short-term weakness and bearish momentum.

Raamdeo Agrawal of Motilal Oswal Group notes significant growth in capital markets. QIP and IPO activities are booming. The AMC sector is expanding rapidly. AUM has grown substantially. While AUM-based businesses flourish, broking remains subdued. He expresses concern over richly valued markets needing earnings support. He anticipates economic pickup in the second half of the year with easing credit flow.

A landmark free trade agreement between India and the UK is set to double bilateral trade to $120 billion by 2030, granting 99% of Indian exports duty-free access. Sectors like textiles, chemicals, pharmaceuticals, and technology are poised for significant growth, with textiles expected to double exports and chemicals projected to surge by 40%.

Foreign investors are showing renewed interest in Indian government bonds, driven by expectations of an upcoming rate cut by the Reserve Bank of India as early as August. Subdued inflation and persistent growth concerns are fueling these expectations. Over the past month, foreign investors have net purchased 129 billion rupees in Indian bonds.

Indian textile stocks jumped up to 6% after the India-UK Free Trade Agreement scrapped 10–12% tariffs on Indian exports to the UK, narrowing the gap with regional rivals. Trident rose 6%, while SP Apparels, Redtape, and TCNS Clothing gained around 2% each. Investors are betting on a potential doubling of exports to the UK over the next few years.

Chinese government bond futures face a big weekly drop. This implies bond yields are rising. Equity and commodity markets attract investors. Thirty-year treasury futures are down nearly two percent. Ten-year futures also see a decrease. Leaders plan to regulate aggressive price cuts. Commodity price surge raises inflation concerns. Bond funds experience redemption pressure.

Indian government bonds may remain stable on Friday. Traders are anticipating New Delhi s debt sale. The sale could trigger short covering later. Benchmark 10-year bond yield is expected to fluctuate. New Delhi plans to sell bonds worth 360 billion rupees. Strong demand is expected at the debt sale. Traders are cautious due to rising oil prices.

M&B Engineering Limited is launching its initial public offering. The IPO of Rupees six hundred fifty crore will open on July 30. The price band is set between Rupees three hundred sixty-six and Rupees three hundred eighty-five. The IPO will close on August 1. The company will list on the stock exchanges on August 6.