Indian Equity Benchmarks Start Flat as U.S. Tariffs Pressure Markets

Market Update at 10:10 AM: India’s equity benchmarks opened flat on Monday, following a sixth consecutive weekly loss on Friday, as investor sentiment remained cautious over uncertainty surrounding U.S. tariffs on Indian goods.

The Nifty 50 rose 0.03 per cent to 24,371.5 points, while the BSE Sensex gained 0.03 per cent to 79,885.36 as of 9:15 a.m. IST. Eight out of the 16 major sectors posted losses in early trade. Broader indices, including Small-Cap and Mid-Cap segments, also traded flat.

Last week, both the Nifty and Sensex shed nearly 1 per cent, marking their longest weekly losing streak in five years. Market sentiment was weighed down by muted Quarterly Results and ongoing concerns about the impact of U.S. trade policies.

The pressure intensified after U.S. President Donald Trump announced a 50 per cent tariff on Indian goods. Half of this tariff has already been implemented, with the remaining 25 per cent—described as a punitive measure linked to India’s purchase of Russian oil—scheduled to take effect on August 28.

Pre-Market Update at 7:30 AM: On Monday, August 11, the Gift Nifty indicated a positive start for Indian benchmark indices. As of 7:20 AM, it was trading near 24,448, up 51 points from the previous close.

Asian markets opened mixed, while US equities ended last week on a strong note, with the Nasdaq closing at a fresh record high. US stock futures traded higher ahead of this week’s inflation data release.

In the days ahead, investors will monitor developments in US-India trade talks, tariff updates, inflation figures, and the scheduled meeting between US President Donald Trump and Russian President Vladimir Putin on August 15. Market focus will also remain on foreign fund flows, Q1 earnings announcements, and other global economic indicators.

Key companies announcing quarterly results today include Astral Limited, SJVN, Ipca Laboratories, BEML, Bata India, JM Financial, Travel Food Services, Embassy Developments, Cello World, Belrise Industries, Eureka Forbes, and Titagarh Rail Systems. Earnings performance could lead to stock-specific movements across Large-Cap, mid-cap, and small-cap segments.

On Friday, August 8, Foreign Institutional Investors (FIIs) were net buyers of equities worth Rs 1,932.81 crore, ending a 14-session selling streak. Domestic Institutional Investors (DIIs) purchased Rs 7,723.66 crore worth of shares, extending their 25-day buying streak.

Indian markets posted their sixth consecutive week of losses, the longest since March 2020, with the Nifty 50 declining 4.97 per cent over this period. On Friday, the index fell 232 points, or 0.95 per cent, to close at 24,363 — the lowest in three months.

On Friday, the Dow Jones Industrial Average rose 206.97 points (0.47 per cent) to 44,175.61. The S&P 500 gained 49.45 points (0.78 per cent) to 6,389.45, while the Nasdaq climbed 207.32 points (0.98 per cent) to 21,450.02. For the week, the S&P 500 rose 2.4 per cent, the Dow gained 1.3 per cent, and the Nasdaq advanced 3.9 per cent.

Gold prices dropped below USD 3,380 per ounce after easing geopolitical tensions reduced safe-haven demand. WTI crude oil futures fell 1 per cent to USD 63.1 per barrel, and Brent crude declined 1 per cent to USD 65.8 per barrel, both hitting over two-month lows on prospects of a resolution to the Ukraine conflict.

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

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