Markets Dip Amid Earnings Caution and Global Trade Concerns; Nifty F&O Expiry Adds Volatility

Market Update at 12:15 PM: Indian stock markets slipped on Thursday as investors weighed June quarter earnings and reacted to global cues, including US President Donald Trump’s comments on the India-US trade deal. Volatility also persisted due to the weekly expiry of Nifty50 F&O contracts.

By 12 PM, the BSE Sensex was down by 99.60 points or 0.12 per cent at Rs 82,534.88, while the NSE Nifty50 dropped 26.05 points or 0.10 per cent to Rs 25,186.00.

Top Gainers on the Sensex included Trent, SBI, M&M, Tata Motors, Sun Pharma, NTPC, and Titan. On the losing side were Tech Mahindra, Infosys, L&T, Bajaj Finance, ICICI Bank, and Zomato (Eternal).

In the broader markets, the Nifty MidCap index gave up early gains to trade flat, while the Nifty SmallCap index held firm with a gain of 0.19 per cent.

Sector-wise, the Nifty PSU Bank and Nifty IT indices fell 0.6 per cent each, and the Nifty Bank index declined 0.45 per cent. On the upside, the Nifty Pharma index gained 0.5 per cent, and Nifty Realty rose 0.4 per cent.

Market Update at 10:30 AM: Indian equity markets started Thursday on a flat note, in line with muted trends seen across Asian markets, as uncertainty over U.S. Federal Reserve Chair Jerome Powell’s position kept investors cautious.

At 9:15 a.m. IST, the Nifty 50 was up 0.07 per cent at 25,230.75, while the BSE Sensex rose 0.14 per cent to 82,753.53. Out of the 13 major sectoral indices, 11 opened in positive territory. The broader Mid-Cap and Small-Cap indices, which are more focused on domestic companies, gained 0.3 per cent each.

In global markets, the MSCI Asia-Pacific index excluding Japan traded flat. Meanwhile, the U.S. dollar and Treasury yields moved lower after Donald Trump said it was “highly unlikely” he would dismiss Powell.

Pre-Market Update at 7:45 AM: Indian equity benchmarks, Nifty 50 and Sensex, are set to open higher on Thursday, July 17, supported by earnings momentum and mixed global cues. As of 7:10 AM, the GIFT Nifty was trading at 25,269, up 38 points from the previous close, hinting at a firm start.

Asian markets were under pressure due to weak trade data from Japan. In the U.S., stock indices closed with slight gains. The Nasdaq reached a record high for the sixth straight session. Markets witnessed sharp intraday volatility on reports that President Donald Trump might replace Federal Reserve Chair Jerome Powell. However, the sentiment improved after Trump denied the speculation, helping markets recover.

Indian stocks have maintained an upward bias for the last three sessions, driven by stock-specific actions, Q1 FY26 earnings, and company commentary. Today, 36 companies are expected to declare their Quarterly Results. These include Axis Bank, Wipro, Jio Financial Services, LTIMindtree, HDFC Asset Management Company, Indian Hotels Company, Polycab India, Tata Communications, 360 ONE WAM and Newgen Software Technologies.

On July 16, Foreign Institutional Investors (FIIs) sold equities worth Rs 1,858.15 crore, while Domestic Institutional Investors (DIIs) bought shares worth Rs 1,223.55 crore.

On Wednesday, the Nifty 50 closed marginally higher by 0.06 per cent at 25,212.05, while the Bank Nifty rose 0.28 per cent to 57,168.95. FMCG, IT, and Realty stocks were among the top performers, whereas Metals and Pharma saw selling pressure. Mid-cap and small-cap indices were largely flat.

Asian sentiment weakened after Japan’s exports dropped 0.5 per cent in June compared to the previous year, missing the expected rise of 0.5 per cent. This follows a 1.7 per cent fall in May. Imports rose 0.2 per cent, defying expectations of a 1.6 per cent drop. Japan reported a trade surplus of 153.1 billion yen (around USD 1.03 billion), lower than the projected surplus of 353.9 billion yen.

In the U.S., markets recovered from midday losses and ended slightly higher. The Nasdaq Composite gained 52.69 points or 0.26 per cent to close at 20,730.49. The S&P 500 advanced 19.94 points or 0.32 per cent to 6,263.70, while the Dow Jones rose 231.49 points or 0.53 per cent to 44,254.78. A brief panic was seen after speculation about Powell’s removal, leading to a 1 per cent drop in major indices and a weaker dollar, but markets bounced back following Trump’s denial.

U.S. factory output increased by 0.1 per cent in June, better than expected, after a revised 0.3 per cent gain in May. On a year-on-year basis, manufacturing rose 0.8 per cent. In the second quarter, manufacturing expanded at an annualised rate of 2.1 per cent, easing from 3.7 per cent in the first quarter.

Oil prices saw a modest rise in early Thursday trade, helped by strong economic signals from key consumers and improving trade sentiment. The U.S. dollar weakened following uncertainty surrounding Powell’s position. Gold prices held steady at USD 3,343.61 per ounce, after a 0.7 per cent rise in the previous session.

For today, Angel One and Hindustan Copper remain on the F&O ban list.

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