Trump gets his One Big Beautiful Bill Act (OBBBA) passed; India's Service sector activity hits 10-month high

U.S. markets delivered substantial gains in Thursday’s holiday shortened trading session after a better-than-expected June U.S. labour report. Major U.S. large- and small-cap indices jumped between 0.75%-1.0% over the day. House Republicans narrowly passed President Donald Trump’s sweeping $4.5 trillion tax cut and spending bill- One Big Beautiful Bill Act (OBBBA), with a 218-214 vote. OBBBA will deliver a massive package of tax and spending measures, which, in aggregate, will cost around $3.3 trillion over the next decade, excluding interest costs, according to the Congressional Budget Office’s estimates.

The U.S. Commerce Department has lifted restrictions on the export of chip design technology to China. Companies like Synopsys, Cadence, and Siemens, previously required to obtain licenses for exports, welcomed the move as part of a broader trade agreement between Washington and Beijing.

The Non-farm payroll employment increased by 147,000 jobs in June, following a jump of 144,000 jobs in May, which was upwardly revised. Economists had expected employment to increase by 110,000 jobs compared to the addition of 139,000 jobs originally reported for the previous month.

The report also stated that the unemployment rate decreased to 4.1 per cent in June from 4.2 per cent in May. The unemployment rate was expected to inch up to 4.3 per cent. India is considering allowing imports of certain processed, genetically modified U.S. farm products, such as soybean meal and corn byproducts, as part of ongoing trade negotiations with the United States. India’s services sector showed strong momentum in June. The HSBC India Services PMI rose to a 10-month high of 60.4, supported by robust job creation and international demand.

US markets will remain closed today to observe Independence Day (July 4th). Following the long Fourth of July weekend, the U.S. economic calendar for next week is relatively quiet, although the minutes of the latest Fed meeting may attract some attention.

The Nifty has been in a correction phase over the last four trading sessions. Previous swing highs of 25317 and 25222 could act as support in the Nifty. On the higher side, a level of 25600 could offer resistance to the index. Indian markets are poised to open flat to mildly negative in line with subdued Asian cues, though Bulls will attempt a recovery from lower levels today.

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Source: HDFC Securities Prime Research