IT Stocks Drag Markets Lower; Nifty Falls 100 points Amid Global Tariff Concerns

Market Update at 10:30 AM: India’s benchmark equity indices opened lower on Monday as weakness in information technology stocks persisted. The Nifty 50 declined 0.34 per cent to 25,064.3, while the BSE Sensex fell 0.39 per cent to 82,182 as of 9:28 a.m. IST.

The Nifty IT index dropped over 1 per cent, marking it as the worst-performing sector, following continued selling pressure after Tata Consultancy Services (TCS) posted weaker-than-expected results last week.

Meanwhile, global sentiment was cautious after U.S. President Donald Trump announced on Saturday that a 30 per cent tariff would be levied on most imports from the European Union and Mexico starting August 1, despite ongoing trade negotiations.

Pre-Market Update at 7:45 AM: Indian equity benchmarks are expected to begin the week on a flat to negative note, taking cues from mixed trends across global markets. As of 7:15 AM, the GIFT Nifty was trading near the 25,175 mark, down 16 points from its previous close, indicating a mildly lower opening for domestic indices.

Asian markets opened on an uneven footing as investors responded to rising trade tensions after U.S. President Donald Trump announced fresh tariffs. Wall Street, too, pulled back slightly from recent record highs— the Dow Jones Industrial Average fell by over 250 points or 0.6 per cent, the S&P 500 slipped 0.3 per cent, and the Nasdaq declined 0.2 per cent. Over the weekend, Trump proposed a 35 per cent tariff on imports from Canada and announced a 30 per cent tariff on goods coming from the European Union and Mexico, effective August 1. Both regions criticised the move but remained open to continuing trade negotiations.

In India, market attention this week will focus on key macroeconomic data, particularly CPI and WPI inflation prints, as well as updates on the proposed India–U.S. trade agreement. As reported by Bloomberg, the U.S. is working towards a temporary deal with India that could lower the proposed tariff to below 20 per cent. India is unlikely to receive a formal tariff notice, and an official statement on the agreement may follow soon.

The Q1 earnings season, which began on a soft note with below-expectation results from TCS, will pick up pace this week. More than 50 companies are scheduled to report results, including HCL Technologies, Tata Technologies, Authum Investment & Infrastructure, Ola Electric Mobility, Tejas Networks, Rallis India, Sambhv Steel Tubes, and NELCO Hotels, all of which are due to announce their June quarter earnings today.

On Friday, July 14, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 5,104.22 crore, while Domestic Institutional Investors (DIIs) bought shares worth Rs 3,558.63 crore. Indian markets ended the session lower, with the BSE Sensex falling by 689.81 points or 0.8 per cent to close at 82,500.47, and the NSE Nifty 50 dropping 205.40 points or 0.8 per cent to settle at 25,149.85. The decline was driven by profit booking and renewed concerns over global trade conflicts.

Gold prices rose to a three-week high on Monday as demand for safe-haven assets increased following the tariff announcements. In currency markets, the euro weakened to its lowest level in three weeks, while the Mexican peso also declined. Both currencies reacted to the potential impact of new U.S. tariffs. Crude oil prices edged up, building on gains of over 2 per cent from the previous session. The rise was supported by concerns over possible new U.S. sanctions on Russia, though increased production from Saudi Arabia and ongoing trade uncertainty capped further upside. As of early Monday trade, Brent crude was hovering around USD 87 per barrel.

For today, RBL Bank, Glenmark and Hindustan Copper remain on the F&O ban list.

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