Sensex, Nifty Stay Muted; Broader Markets Decline

Market Update at 12:15 PM: Indian stock markets ended on a cautious note today, influenced by U.S. President Donald Trump's announcement regarding new tariff rates on multiple countries. Market participants are now looking forward to a potential India-U.S. trade agreement that could help prevent hefty tariffs on Indian goods exported to the U.S.

The BSE Sensex closed nearly flat at 83,444, up just 1.3 points, while the Nifty50 slipped slightly by 8 points to settle at 25,453.45, a dip of 0.03 per cent.

Titan led the losses on the Sensex, falling more than 5 per cent. Other notable laggards included HCL Tech, Sun Pharma, Bharti Airtel, M&M, TCS, Axis Bank, HUL, and Tech Mahindra.

On the other hand, Kotak Mahindra Bank jumped 4 per cent, emerging as the top gainer. Positive moves were also seen in Eternal, Bharat Electronics, Tata Motors, Adani Ports, NTPC, Ultratech Cement, and Asian Paints.

The broader market also felt the pressure, with the Nifty MidCap and SmallCap indices losing 0.63 per cent and 0.73 per cent, respectively.

Sector-wise, gains were limited to the Nifty Bank and Nifty Private Bank indices, primarily due to strength in Kotak Bank. Meanwhile, sectors like Auto, Pharma, and Media dropped over 1 per cent, and Consumer Durables saw a steeper decline of 2 per cent.

Market Update at 9:45 AM: Indian benchmark indices opened on a quiet note Tuesday, as global sentiment remained cautious following fresh trade developments. U.S. President Donald Trump announced steep 25 per cent tariffs on imports from Japan and South Korea, while deferring the broader implementation of tariffs to August 1, offering time for further trade negotiations. He also mentioned that an agreement with India was nearing completion.

At 9:15 a.m. IST, the Nifty 50 slipped 0.13 per cent to 25,427.85 and the BSE Sensex edged down 0.07 per cent to 83,387.03. Among sectoral indices, eight out of 13 saw slight gains. However, broader market indices such as the Nifty Smallcap and Nifty Midcap traded largely unchanged.

The tariff-related announcements sparked concerns over rising costs and slower global growth. Analysts also pointed out that policy uncertainty may weigh more heavily on business sentiment, delaying investment decisions. Meanwhile, U.S. markets declined, with the S&P 500 registering its steepest fall in three weeks.

Pre-Market Update at 7:45 AM: Indian stock markets are expected to begin Tuesday, July 8, on a softer note, as global sentiment turns cautious following the United States' announcement of steep import tariffs. President Donald Trump has declared new tariffs ranging between 25 per cent and 40 per cent on several countries, including Japan and South Korea, which are set to take effect from August 1. This announcement has added pressure to global markets, even as Asian indices show early signs of resilience.

 As of 7:15 AM, the GIFT Nifty was quoting near 25,506, about 10 points lower than its previous close, indicating a weak start for domestic equities.

Despite overnight losses on Wall Street, Asian markets opened marginally higher, suggesting that investors are still optimistic about the possibility of continued trade negotiations. This week, the Indian market is likely to react to multiple cues including the first-quarter earnings season, the expected U.S.-India trade discussions, minutes from the latest Federal Reserve meeting, and key global economic data.

Foreign Institutional Investors (FIIs) were net buyers on Monday, July 7, investing Rs 1,853.39 crore in Indian equities. Domestic Institutional Investors (DIIs) also extended support, buying shares worth Rs 321.16 crore. This institutional activity helped stabilise the market during a session marked by global uncertainty.

On Monday, the Nifty 50 closed almost flat at 25,461.3, while the BSE Sensex edged up by 0.01 per cent to end at 83,442.5. Consumer-focused stocks provided some support, helping offset losses in other sectors. However, the broader markets underperformed, with the Nifty Midcap index falling 0.3 per cent and the Smallcap index down 0.4 per cent, as investors remained cautious due to escalating trade tensions.

U.S. markets closed significantly lower on Monday following U.S. President Trump's announcement of steep tariffs targeting major trade partners. The Dow Jones Industrial Average slipped by 422.17 points, a drop of 0.94 per cent, settling at 44,406.36. The S&P 500 also moved down, losing 49.37 points or 0.79 per cent, to finish at 6,229.98. Meanwhile, the Nasdaq Composite declined by 188.59 points, or 0.91 per cent, ending the session at 20,412.52.

Meanwhile, gold prices held steady as investors sought safety amid geopolitical tensions. However, rising U.S. Treasury yields capped any major upside. Spot gold was trading 0.1 per cent lower at USD 3,336.39 per ounce. Oil prices, after rising nearly 2 per cent in the previous session, saw some correction. Brent crude futures fell 0.30 per cent to USD 69.37 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped 0.35 per cent to USD 67.69 per barrel. The decline was attributed to concerns over increased OPEC+ supply and the broader impact of new U.S. trade measures.

The Indian rupee weakened significantly on Monday, depreciating by 54 paise to close at Rs 85.94 against the U.S. dollar. The fall was driven by rising crude oil prices and continued strength in the dollar globally, adding further pressure on domestic currency markets.

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

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