Nifty, Sensex to Open Flat as US-EU Tariff Agreement and Q1 Earnings Drive Sentiment

Pre-Market Update at 7:30 AM: Indian equity markets are set for a muted start on Monday, July 28, as indicated by the GIFT Nifty, which was trading near 24,821 at 7:16 AM, down 21 points from its previous close. The benchmark Nifty is expected to follow mixed Asian market cues amid the ongoing Q1 FY26 earnings season and updates on global trade developments.

Last Friday, Indian equities extended losses for the second consecutive session. The Sensex declined 721.08 points, or 0.88 per cent, to close at 81,463.09, while the Nifty 50 slipped 225.10 points, or 0.90 per cent, settling at 24,837. Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 1,979.96 crore, whereas Domestic Institutional Investors (DIIs) were net buyers with purchases of Rs 2,138.59 crore.

Today’s focus will be on Q1 FY26 results from Bharat Electronics, Adani Green Energy, Torrent Pharmaceuticals, GAIL India, Mazagon Dock Shipbuilders, Waaree Energies, NTPC Green Energy, Adani Total Gas, IndusInd Bank, and Nippon Life India Asset Management. Kotak Mahindra Bank and IDFC First Bank reported their Quarterly Results post-market on Friday and may influence market sentiment.

On Wall Street, indices ended higher on Friday, buoyed by optimism over a US-European Union trade agreement. The Dow Jones Industrial Average rose 0.47 per cent to 44,901.92, the S&P 500 gained 0.40 per cent to 6,388.64, and the Nasdaq inched up 0.24 per cent to 21,108.32. For the week, the S&P 500 advanced 1.5 per cent, Nasdaq added 1 per cent, and Dow climbed 1.3 per cent.

The US and EU signed a framework trade agreement introducing a 15 per cent tariff on most EU imports, effective August 1. This strengthened the euro, causing the dollar index to slip 0.1 per cent to 97.534. Gold prices fell to a near two-week low, with spot gold at USD 3,332.39 per ounce and US gold futures at USD 3,332.50. Crude oil prices rose, supported by optimism over the trade deal and expectations of a pause in US-China tariffs. Brent crude traded at USD 68.67 per barrel, and WTI crude stood at USD 65.37 per barrel.

Investors will closely monitor updates on the US-India trade agreement, the upcoming US Federal Reserve meeting, auto sales data, IPO activity, and movements in crude oil prices. Q1 earnings from Large-Cap and Mid-Cap companies will remain in focus, with attention on any dividend announcements, bonus or rights issues that could drive stock-specific moves.

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

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