Bearish trend continues on Nifty, Sensex as tariff concerns dent investor sentiment

MUMBAI: The Indian stock market started the week on a negative note as both benchmark indices opened in the red on Monday, reflecting weak global cues and investor caution ahead of the August 1 tariff deadline.

The Nifty 50 index opened at 24,782.45, slipping by 54.55 points or 0.22 per cent, while the BSE Sensex also declined at the opening, falling by 163.12 points or 0.20 per cent to 81,299.97.

Market experts attributed the weak opening to global uncertainties and the upcoming tariff deadline. Ajay Bagga, Banking and Market Expert, told ANI, “EU-US trade talks led to a 15 per cent tariff deal. This brings a lot of predictability and stability to the biggest trade relationship of Euro 1.9 trillion. US-China trade talks take place in Stockholm this week, and there was a report that further tariff measures have been postponed by 90 days. Markets will watch the outcome of these talks closely.”

He further added, “The tariff deadline is August 1st, and we can expect a flurry of letters imposing 15 per cent tariffs on many countries and possibly a last-minute postponement of the deadline. The US Federal Open Market Committee (FOMC) meets this week and is expected to hold rates steady. The Bank of Japan (BOJ) is also expected to keep rates unchanged.”

In the broader market indices, Nifty 100 was down by 0.23 per cent, Nifty Midcap 100 fell by 0.14 per cent, and Nifty Small Cap lost 0.34 per cent.
Sector-wise, the performance was mixed. Nifty Auto gained 0.46 per cent and Nifty FMCG rose by 0.26 per cent. However, the Nifty IT index declined by over 1 per cent, Nifty Media dropped 0.9 per cent, Nifty Private Bank fell more than 1 per cent, and Nifty Realty saw a sharp decline of 1.9 per cent.

Sunil Gurjar, SEBI-registered analyst and founder of Alphamojo Financial Services, commented, “Nifty 50 did not perform well last week, falling consecutively and showing weak strength in the sector. The price is currently hovering around the support level of 24,650. A breakdown below this support would confirm the continuation of the downtrend, potentially leading to a fall up to 23,850. Technically, the price is trading below all key short-term EMAs, which signals a downtrend.”

Several companies are set to announce their Q1 earnings today, including Bharat Electronics, Adani Green Energy, Torrent Pharmaceuticals, GAIL India, Mazagon Dock Shipbuilders, Waaree Energies, NTPC Green Energy, Adani Total Gas, IndusInd Bank, Nippon Life India Asset Management, Ajanta Pharma, Go Digit General Insurance, Piramal Pharma, and Motherson Sumi Wiring India.

Asian markets also showed a mixed trend. Japan’s Nikkei 225 was down by 0.92 per cent, Singapore’s Straits Times fell 0.29 per cent, and South Korea’s KOSPI index remained flat at 0.06 per cent. Meanwhile, Hong Kong’s Hang Seng rose by 0.24 per cent and Taiwan’s Weighted Index gained 0.28 per cent. (ANI)