Nifty, Sensex End Flat as FMCG Gains Offset Broader Market Losses

Market Update at 4:00 PM: On Monday, July 7, Indian stock markets ended the session largely unchanged. The benchmark indices showed minimal movement as gains in consumer-focused stocks helped offset broader declines. The Nifty 50 hovered in a narrow range of 82 points during the day before closing just 0.30 points higher at Rs 25,461.30. The Sensex edged up by 9.61 points or 0.01 per cent to settle at Rs 83,442.50. Investor sentiment remained cautious as global cues turned weak due to delayed tariff announcements from the United States.

Across Asian markets, weakness was evident following the U.S. government's decision to postpone clarity on new tariffs. President Donald Trump said that several trade agreements were close to finalization, with formal announcements expected by July 9 and implementation by August 1. He also suggested a potential 10 per cent tariff on nations supporting what he described as BRICS' "anti-American" policies — a group that includes India. The lack of transparency around these announcements led to subdued investor participation globally and at home.

Back in domestic markets, sectoral performance was mixed. Out of 11 key sectors, only three ended in positive territory. The Nifty FMCG index outperformed with a gain of 1.68 per cent, driven mainly by Godrej Consumer Products, which jumped 6.33 per cent after the company projected strong single-digit growth in consolidated revenue for the June quarter. Other notable gainers in the FMCG space included Hindustan Unilever (up 3.04 per cent), Nestle India (up 1.22 per cent), and ITC (up 0.87 per cent). 

In contrast, broader market indices faced selling pressure. The Nifty Midcap 100 closed down by 0.27 per cent, while the Nifty Smallcap 100 lost 0.44 per cent, indicating weakness in the broader market. Among sectoral laggards, the Nifty Media index declined by 1.03 per cent.

Stock-specific action saw notable moves. Dabur India gained nearly 3 per cent after releasing a positive Q1 business update. Dhanlaxmi Bank added 1.54 per cent after reporting a 15.8 per cent year-on-year increase in total business for the June quarter.

Among the top contributors to the Nifty 50’s gains were Hindustan Unilever, adding 17.78 points; Reliance Industries, up 13.72 points; and Bharti Airtel, contributing 11.30 points. On the flip side, Infosys dragged the index down by 14.05 points, ICICI Bank by 13.83 points, and Tech Mahindra by 5.54 points.

The overall market breadth remained negative. Of the 3,060 stocks traded on the NSE, 1,154 advanced, 1,795 declined, and 111 remained unchanged. A total of 61 stocks hit their 52-week highs, while 38 touched 52-week lows. Meanwhile, 115 stocks were locked in their upper circuit, and 74 stocks hit their lower circuit.

Market Update at 12:15 PM: Indian stock markets were trading in the red as investors reacted to U.S. Treasury Secretary Scott Bessent's statement confirming that tariffs would take effect from August 1 for nations that have not finalized agreements with the Trump administration.

The BSE Sensex declined marginally by 38 points to 83,395, while the Nifty50 slipped 11 points to trade at 25,450.

Major laggards included Bharat Electronics, Tech Mahindra, Eternal, HCL Technologies, ICICI Bank, Sun Pharma, Adani Ports, and SBI, with losses of up to 2 per cent. On the other hand, gains of up to 1 per cent were seen in stocks like Trent, Hindustan Unilever, Asian Paints, Bajaj Finserv, Reliance Industries, HDFC Bank, and Bharti Airtel.

In the broader market, the BSE MidCap index hovered near flat with a slight negative bias, while the BSE SmallCap index declined 0.29 per cent.

Sector-wise, Nifty Metal and Nifty IT indices were under pressure, down 0.68 per cent and 0.5 per cent, respectively. In contrast, the Nifty FMCG index was the standout performer, rising 1.6 per cent.

Market Update at 9:45 AM: Indian benchmark indices opened lower on Monday, reflecting cautious investor sentiment amid global trade uncertainty. The dip followed signals from U.S. officials suggesting a possible delay in proposed tariffs, though no clear timeline was offered. Adding to the pressure, oil prices eased as OPEC+ increased supply more than expected.

By 9:18 am, the BSE Sensex was down 131 points, or 0.16 per cent, at 83,301. Similarly, the Nifty50 declined 37 points, or 0.15 per cent, to trade at 25,425.

U.S. President Donald Trump stated on Sunday that several trade deals are nearing finalisation, with countries to be informed of revised tariff rates by July 9, effective from August 1. While the initial plan in April introduced a 10 per cent base tariff, Trump hinted at higher "reciprocal" rates of up to 50 per cent. He also warned of levies as high as 60 to 70 per cent on nations aligning with what he called "Anti-American policies" of the BRICS bloc—Brazil, Russia, India, and China.

Among the major laggards on the Sensex were Bharat Electronics, Tech Mahindra, HCL Tech, Eternal, and Maruti, falling up to 1.6 per cent. On the other hand, Trent, Asian Paints, Bajaj Finserv, Reliance Industries, and HDFC Bank opened with gains.

Sector-wise, Nifty IT, Metal, and Media indices slipped up to 0.4 per cent, while FMCG, PSU Bank, Consumer Durables, and Oil & Gas sectors posted gains of up to 0.5 per cent.

Pre-Market Update at 7:45 AM: Indian equity benchmarks Nifty 50 and Sensex are expected to open on a flat to slightly positive note today, July 4, reflecting subdued global sentiment. The GIFT Nifty hovered around 25,536 in early trade, up 9 points, indicating limited movement at the open.

Asian markets opened lower as caution prevailed over the looming July 9 deadline related to U.S. tariffs under former President Donald Trump. U.S. stock futures also edged lower as investors stayed cautious about potential trade disruptions.

Back home, attention remains firmly on the ongoing negotiations between India and the U.S. for an interim trade agreement. India has maintained its stance on sensitive sectors such as agriculture and dairy. If both sides resolve key differences, the deal might be concluded before July 9 — the deadline tied to the temporary suspension of Trump-era tariffs.

On the institutional front, FIIs were net sellers to the tune of Rs 760.11 crore, while DIIs pulled out Rs 1,028.84 crore on Friday. This reflects ongoing investor caution amid earnings season uncertainty and global trade tensions.

Markets ended slightly higher on Friday, with the Sensex gaining 193.41 points to close at 83,432.88, and the Nifty 50 rising by 55.70 points to settle at 25,461. Despite this, both indices posted a weekly loss of 0.70 per cent, ending a two-week winning run, largely due to profit-taking and foreign fund outflows.

In the U.S., markets were closed for the Independence Day holiday, but futures slipped in early trading. For the past week, though, Wall Street performed well — S&P 500 rose 1.72 per cent, Nasdaq gained 1.62 per cent, and the Dow jumped 2.3 per cent.

Meanwhile, President Trump’s new tariffs will now take effect from August 1, not July 9. Treasury Secretary Scott Bessent clarified this shift, stating it targets countries that have not yet signed trade deals with the U.S.

In commodities, Brent crude fell 1.2 per cent to USD 67.48 a barrel after OPEC unexpectedly raised output for August. WTI crude dropped by 2.03 per cent to USD 65.64. Gold prices also dipped 0.3 per cent, trading at USD 3,323.71 per ounce, as Trump hinted at possible trade breakthroughs and delayed tariffs. The dollar index stayed steady at 96.967, close to a multi-year low, reflecting a wait-and-watch approach by traders.

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