Indian Benchmark Indices Trade Flat Amid Global Uncertainty; Realty and IT Stocks Under Pressure

Market Update at 12:15 PM: Equity benchmarks continued to move within a narrow range on Wednesday as investors remained cautious due to the absence of clear triggers. Market sentiment was further dampened by reports suggesting that U.S. President Donald Trump may announce a new list of seven countries facing revised tariff rates on Thursday.

At last check, the BSE Sensex hovered near 83,688, down 25 points or 0.03 per cent, while the Nifty50 inched up by just 3 points to trade at 25,527.

On the Nifty index, major laggards included names like HCL Tech, Tata Steel, Wipro, HDFC Life, L&T, SBI Life, ICICI Bank, JSW Steel, Infosys, Tech Mahindra, and Tata Motors, all declining up to 1 per cent.

Meanwhile, stocks such as Hindustan Unilever, Asian Paints, Cipla, Shriram Finance, Adani Enterprises, Maruti Suzuki, Jio Financial Services, and Sun Pharma posted gains, emerging as top performers on the index.

In the broader market, the Nifty MidCap index edged up by 0.10 per cent, while the SmallCap segment saw a stronger move with gains of 0.64 per cent.

Sector-wise, the FMCG index led the pack with a 0.45 per cent rise, followed closely by gains in the Media and Pharma sectors. On the flip side, Realty stocks underperformed with a 1 per cent drop, while the Metal and IT sectors declined 0.79 per cent and 0.6 per cent, respectively.

Market Update at 9:45 AM: India's benchmark equity indices opened on a muted note on Wednesday amid rising global trade tensions. The Nifty 50 declined 0.03 per cent to 25,514.6 while the BSE Sensex slipped 0.1 per cent to 83,625.89, as of 9:15 a.m. IST, reflecting cautious investor sentiment following new tariff threats from the United States.

The pressure came after U.S. President Donald Trump announced plans to impose a steep 200 per cent tariff on pharmaceutical imports, directly impacting India's export-driven pharma sector. The Nifty Pharma index fell 0.3 per cent in early trade, with market participants weighing the potential consequences of the proposed move. The U.S. is a critical market for Indian drugmakers, accounting for nearly one-third of India’s pharma exports. In the previous fiscal year, pharma exports to the U.S. rose 16 per cent to around Rs 75,000 crore, according to data from Pharmexcil, a government-supported trade body.

Adding to concerns, Trump stated the U.S. would “pretty soon” charge a 10 per cent tariff on imports from BRICS nations. India, being part of the BRICS bloc, could face broader trade headwinds if such measures are implemented.

Sectoral performance was mixed, with seven of the 13 major sectoral indices in the red. Small-Cap and Mid-Cap indices, which are more focused on domestic performance, remained largely flat in early trading. Investors continued to adopt a wait-and-watch approach amid uncertainty over global trade dynamics and their impact on corporate earnings and upcoming Quarterly Results.

The current volatility in the market comes ahead of several Large-Cap companies preparing to announce their quarterly results and possible dividend declarations. Additionally, there is market interest around upcoming IPOs and bonus announcements expected later in the month.

Pre-Market Update at 7:45 AM: On Wednesday, July 9, the Indian stock markets are expected to start on a weak note, tracking cautious global cues after U.S. President Donald Trump confirmed that the proposed “reciprocal tariffs” will begin from August 1, with no extensions.

At 7:17 AM, the GIFT Nifty was trading near 25,579, down by 25 points, indicating a soft opening for both the Nifty 50 and Sensex. Asian markets were mixed, reflecting investor concern over Trump’s stance. In the U.S., markets closed flat to lower — the Dow Jones fell by 0.37 per cent (165.60 points) to 44,240.76, the S&P 500 dipped 0.07 per cent, and the Nasdaq inched up 0.03 per cent.

President Trump proposed a 50 per cent tariff on imported copper and hinted at up to 200 per cent duties on pharmaceutical imports. Although the pharma tariff may take a year to implement, the immediate market reaction was sharp. Copper futures in New York surged as much as 17 per cent on Tuesday, reaching USD 5.5085 per pound, before easing. Meanwhile, London Metal Exchange (LME) copper prices declined 1.7 per cent to USD 9,627 per tonne. Indian metal and pharma stocks are likely to see selling pressure in today’s session.

Domestically, Q1FY26 earnings season is underway, and stock-specific movement is likely to dominate the trade. On July 8, Foreign Institutional Investors (FIIs) were net sellers of equities worth Rs 26.12 crore, while Domestic Institutional Investors (DIIs) were net buyers, investing Rs 1,366.82 crore.

On Tuesday, Indian markets ended positively — the Sensex rose by 270.01 points (0.32 per cent) to close at 83,712.51, while the Nifty 50 gained 61.20 points (0.24 per cent) to end at 25,522.50.

In other asset classes, gold prices remained flat around USD 3,300.23 per ounce, and the U.S. Dollar Index was steady at 97.582. Crude oil prices edged lower amid rising U.S. inventories — Brent was down 0.20 per cent at USD 70.01 per barrel, and WTI fell 0.25 per cent to USD 68.16.

For today, RBL Bank remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.