Benchmarks Sensex, Nifty Open Trading Session Nearly Flat As Trade Uncertainty Weighs Heavy On Markets
Indian markets projected renewed confidence on Monday. In the pre-open session, both benchmark indices, Sensex and Nifty, made slight gains. As of 9:04 AM, the BSE Sensex stood over 50 points higher above 81,800, while the NSE Nifty50 gained more than 75 points to inch closer to 25,050.
As markets opened, the sentiment prevailed to some extent. As of 9:15 AM, the Sensex climbed more than 100 points and traded at 81,892.62, while the Nifty stood almost flat by slipping 2.6 points to 24,965.80. However, immediately both indices began trading marginally in red and stood nearly flat.
As of 9:21 AM, the Sensex declined close to 90 points to trade below 81,670, while the Nifty slipped 37 points to breach the 24,950 mark. On the 30-share Sensex, HDFC Bank, Tata Steel, ICICI Bank, UltraTech Cement, and Eternal emerged among the gainers in the morning market hour. Meanwhile, the laggards were driven by Axis Bank, Reliance, Infosys, M&M, and Titan.
In the broader markets, the Nifty Microcap250 and Nifty Smallcap 250 fell 0.55 per cent each, while the Nifty Financial Services climbed 0.48 per cent. Sectorally, the Oil & Gas index clocked the largest loss of 0.83 per cent in the morning, as the Metal index stood out with gains of 0.70 per cent.
The GIFT Nifty indicated a muted sentiment among investors today as it slipped 51 points to touch 24,970, as of 8:57 AM.
What To Expect From Stock Markets This Week?
Domestic equity markets this week are expected to be driven by a combination of corporate earnings, international triggers, and trade-related developments, according to market analysts. Following a third consecutive week of losses, investor sentiment remains fragile, with upcoming events likely to determine near-term direction.
Among key catalysts will be quarterly earnings updates from several large-cap companies. Market participants will closely track commentary on future outlooks amid already cautious forward guidance, particularly from IT and financial firms.
Investors Focus On India-US Trade Negotiations
On the global front, investors will also be monitoring developments from the recently concluded fifth round of India–US bilateral trade negotiations, which took place on July 17 in Washington. Both sides are working against an August 1 deadline to finalise an interim trade pact, a move aimed at averting the return of Trump-era tariffs.
The potential reinstatement of the 26 per cent tariff on select Indian exports has added urgency to the discussions. “The prolonged wait for the India–US trade deal ahead of the looming August 1 tariff deadline is keeping investors on the sidelines,” said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd.
The uncertainty surrounding the outcome of these trade negotiations is expected to add another layer of caution to market activity in the coming days.
How Did Indian Stock Markets Fare Last Week?
Last week, Indian equity benchmarks extended their decline, with both the BSE Sensex and NSE Nifty breaching key psychological levels. In the last trading session on Friday, the Sensex fell 501.51 points or 0.61 per cent, to close at 81,757.73, while the Nifty slipped 143.05 points or 0.57 per cent, ending the day at 24,968.40, falling below the 25,000-mark.
The overall sentiment was weighed down by disappointing Q1 FY26 results, especially from IT and financial sectors. The underperformance in technology stocks was linked to global demand uncertainty and conservative guidance from major companies. Meanwhile, concerns about net interest margin (NIM) compression and asset quality kept financials under pressure.
Broad-Based Selling Across Sectors
The weakness was broad-based, with most sectoral indices ending in the red. Pharma, Private and PSU Banks, FMCG, Capital Goods, Consumer Durables, and Telecom sectors recorded declines ranging between 0.5 to 1 per cent. Only Media and Metal indices bucked the trend and closed higher.
Market watchers expect volatility to persist in the coming sessions, with investor attention shifting between earnings announcements, macroeconomic cues, and the evolving narrative around trade policy.
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