Indian benchmark indices Sensex and Nifty closed lower on Wednesday, pressured by losses in IT and oil & gas stocks, along with a decline in heavyweight Reliance Industries. Market sentiment stayed cautious amid persistent uncertainty over U.S. tariff policies, as investors awaited clarity on a possible U.S.-India trade agreement.
U.S. President Donald Trump said a 10% tariff on imports from BRICS nations would be imposed “pretty soon,” placing India squarely in focus.
The BSE Sensex shed 176.43 points, or 0.21%, to settle at 83,536.08, while the NSE Nifty declined 46.40 points, or 0.18%, to close at 25,476.10.
The market capitalization of all listed companies on the BSE shrank by Rs 1.10 lakh crore to Rs 461.37 lakh crore.
Sectoral Watch
On the 30-share Sensex, shares of HCL Technologies, Tata Steel, Tech Mahindra, Reliance Industries, and BEL led the laggards, falling between 1% and 2%.
On a sectoral basis, the IT index dropped 0.8%, while oil & gas fell 1.3%. The metals index slipped 1.4%, weighed down by losses in Vedanta and Tata Steel.
Vedanta sank 3.4% after short-seller Viceroy Research disclosed a short position against the debt of its UK-based parent, Vedanta Resources, accusing the company of “systematically draining” its Indian subsidiary.
Meanwhile, Tata Steel lost 1.8% following weak Q1 volume numbers.
FMCG stocks bucked the trend, rising 0.8% to lead sectoral gains. The rally was driven by Hindustan Unilever and Varun Beverages, after Jefferies named them among its "contrarian" picks in the consumer space. Hindustan Unilever climbed 1.3%, while Varun Beverages added 1.7%.
Index heavyweight Reliance Industries slipped as much as 2% in late trade after a report suggested its telecom and digital arm, Reliance Jio Platforms, has deferred its IPO plans for 2025.
The broader market was mixed. The Nifty Smallcap 100 rose 0.6%, while the Nifty Midcap 100 edged down 0.1%.
Expert Views
Indian markets traded in a volatile but in a narrow range and ended marginally lower, extending the ongoing consolidation phase, said Ajit Mishra, SVP, Research, Religare Broking.
"While the tariff-related concerns linger, the focus now shifts to the earnings season, with IT major, TCS, scheduled to announce its results on Thursday, July 10. Additionally, the weekly expiry could add to the choppiness. Amid all this, we maintain our bullish stance and recommend continuing with a “buy on dips” strategy, with a strong emphasis on stock selection," said Mishra.
The Nifty witnessed range-bound movement after a strong upmove, facing stiff resistance around 25,500–25,550, said Rupak De, Senior Technical Analyst at LKP Securities, adding that on the hourly chart, the index has slipped below the 50-hour simple moving average, while the RSI has also moved below the 50 mark, indicating weakening momentum.
"However, it continues to hold above the breakout zone of 25,200–25,250, which may act as immediate support in the short term. As long as this level is sustained, the broader trend remains positive. A sustained move above 25,550 could trigger fresh upside," said De.
Global Markets
World equities mostly edged higher on Wednesday, tracking a volatile Wall Street session, as the Trump administration pushed for more favourable trade terms with major economies.
In early European trade, Germany’s DAX rose 0.7%, France’s CAC 40 gained 0.8%, and the UK’s FTSE 100 was up 0.1%.
Asian markets saw a mixed close. Japan’s Nikkei 225 advanced 0.3%, while South Korea’s Kospi added 0.6%, amid ongoing trade negotiations with the U.S. ahead of Washington’s planned tariff hikes set for August 1.
Chinese equities lagged, with the Hang Seng down 1.1% and the Shanghai Composite easing 0.1%.
In the U.S. bond market, Treasury yields moved higher on Tuesday after a weak auction of three-year notes. The Treasury is set to sell $39 billion in 10-year notes on Wednesday and $22 billion in 30-year bonds on Thursday.
Meanwhile, gold extended its slide for a third straight session, down 0.4% to $3,286.17 an ounce.
Crude Impact
Oil prices extended gains on Wednesday, holding near their highest levels since June 23, as geopolitical tensions in the Red Sea and fresh U.S. tariff threats on copper stoked supply concerns. A forecast for lower U.S. oil output further supported the bullish momentum.
By 0855 GMT, Brent crude rose 48 cents, or 0.7%, to $70.63 a barrel, while U.S. West Texas Intermediate (WTI) advanced 51 cents, or 0.8%, to $68.84.
Rupee vs Dollar
The Indian rupee ended flat at 85.6725 against the U.S. dollar on Wednesday, as global markets showed a subdued response to the latest trade measures from the White House. Domestic traders remained cautious, awaiting clarity on a potential U.S.-India trade agreement.
Meanwhile, the dollar index inched up 0.03% to 97.02, reflecting marginal strength in the greenback against a basket of six major currencies.
(With inputs from agencies)
U.S. President Donald Trump said a 10% tariff on imports from BRICS nations would be imposed “pretty soon,” placing India squarely in focus.
The BSE Sensex shed 176.43 points, or 0.21%, to settle at 83,536.08, while the NSE Nifty declined 46.40 points, or 0.18%, to close at 25,476.10.
The market capitalization of all listed companies on the BSE shrank by Rs 1.10 lakh crore to Rs 461.37 lakh crore.
Sectoral Watch
On the 30-share Sensex, shares of HCL Technologies, Tata Steel, Tech Mahindra, Reliance Industries, and BEL led the laggards, falling between 1% and 2%.
On a sectoral basis, the IT index dropped 0.8%, while oil & gas fell 1.3%. The metals index slipped 1.4%, weighed down by losses in Vedanta and Tata Steel.
Vedanta sank 3.4% after short-seller Viceroy Research disclosed a short position against the debt of its UK-based parent, Vedanta Resources, accusing the company of “systematically draining” its Indian subsidiary.
Meanwhile, Tata Steel lost 1.8% following weak Q1 volume numbers.
FMCG stocks bucked the trend, rising 0.8% to lead sectoral gains. The rally was driven by Hindustan Unilever and Varun Beverages, after Jefferies named them among its "contrarian" picks in the consumer space. Hindustan Unilever climbed 1.3%, while Varun Beverages added 1.7%.
Index heavyweight Reliance Industries slipped as much as 2% in late trade after a report suggested its telecom and digital arm, Reliance Jio Platforms, has deferred its IPO plans for 2025.
The broader market was mixed. The Nifty Smallcap 100 rose 0.6%, while the Nifty Midcap 100 edged down 0.1%.
Expert Views
Indian markets traded in a volatile but in a narrow range and ended marginally lower, extending the ongoing consolidation phase, said Ajit Mishra, SVP, Research, Religare Broking.
"While the tariff-related concerns linger, the focus now shifts to the earnings season, with IT major, TCS, scheduled to announce its results on Thursday, July 10. Additionally, the weekly expiry could add to the choppiness. Amid all this, we maintain our bullish stance and recommend continuing with a “buy on dips” strategy, with a strong emphasis on stock selection," said Mishra.
The Nifty witnessed range-bound movement after a strong upmove, facing stiff resistance around 25,500–25,550, said Rupak De, Senior Technical Analyst at LKP Securities, adding that on the hourly chart, the index has slipped below the 50-hour simple moving average, while the RSI has also moved below the 50 mark, indicating weakening momentum.
"However, it continues to hold above the breakout zone of 25,200–25,250, which may act as immediate support in the short term. As long as this level is sustained, the broader trend remains positive. A sustained move above 25,550 could trigger fresh upside," said De.
Global Markets
World equities mostly edged higher on Wednesday, tracking a volatile Wall Street session, as the Trump administration pushed for more favourable trade terms with major economies.
In early European trade, Germany’s DAX rose 0.7%, France’s CAC 40 gained 0.8%, and the UK’s FTSE 100 was up 0.1%.
Asian markets saw a mixed close. Japan’s Nikkei 225 advanced 0.3%, while South Korea’s Kospi added 0.6%, amid ongoing trade negotiations with the U.S. ahead of Washington’s planned tariff hikes set for August 1.
Chinese equities lagged, with the Hang Seng down 1.1% and the Shanghai Composite easing 0.1%.
In the U.S. bond market, Treasury yields moved higher on Tuesday after a weak auction of three-year notes. The Treasury is set to sell $39 billion in 10-year notes on Wednesday and $22 billion in 30-year bonds on Thursday.
Meanwhile, gold extended its slide for a third straight session, down 0.4% to $3,286.17 an ounce.
Crude Impact
Oil prices extended gains on Wednesday, holding near their highest levels since June 23, as geopolitical tensions in the Red Sea and fresh U.S. tariff threats on copper stoked supply concerns. A forecast for lower U.S. oil output further supported the bullish momentum.
By 0855 GMT, Brent crude rose 48 cents, or 0.7%, to $70.63 a barrel, while U.S. West Texas Intermediate (WTI) advanced 51 cents, or 0.8%, to $68.84.
Rupee vs Dollar
The Indian rupee ended flat at 85.6725 against the U.S. dollar on Wednesday, as global markets showed a subdued response to the latest trade measures from the White House. Domestic traders remained cautious, awaiting clarity on a potential U.S.-India trade agreement.
Meanwhile, the dollar index inched up 0.03% to 97.02, reflecting marginal strength in the greenback against a basket of six major currencies.
(With inputs from agencies)
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