Is the Indian Market Gaining Momentum as the 'Mini' India-US Deal Approaches?
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Synopsis
On July 8, Mumbai witnessed a positive closing in the Indian stock market, as investors displayed cautious optimism ahead of the impending India-US trade agreement. With key indices like Sensex and Nifty showing gains, the market sentiment remains hopeful, despite the absence of formal confirmation on the deal.
Key Takeaways
- The Sensex and Nifty indices showed positive movement.
- Cautious optimism surrounds the India-US trade deal.
- Sectoral indices mostly closed higher.
- The rupee gained strength against the dollar.
- Investors remain watchful in the absence of formal confirmations.
Mumbai, July 8 (NationPress) The Indian stock market wrapped up the day in positive territory on Tuesday, rising by approximately 0.3 percent as investors exercised caution in anticipation of the upcoming India-US trade deal, which is expected to be finalized soon.
The Sensex concluded at 83,712.51, climbing by 270.01 points or 0.32 percent from the previous session's close of 83,442.50. The 30-share index peaked at 83,812.31 during the day after starting in the red at 83,387.03.
Nifty also showed a modest gain of 61.20 points or 0.24 percent, settling at 25,522.50.
According to analysts, the Indian equity market remained largely stable as investors awaited substantial updates on the India-US trade agreement.
“While sentiment is cautiously optimistic regarding a potential deal, the absence of formal confirmation has limited new buying activity,” stated Vinod Nair, Head of Research at Geojit Investments Limited.
Additionally, the US's decision to postpone the implementation of 25 percent tariffs on key trading partners has caused investors to adopt a more defensive strategy, Nair added.
From the Sensex basket, stocks like Kotak Bank, Adani Ports, Eternal, NTPC, BEL, Power Grid, Infosys, Tata Motors, and HDFC Bank finished in the green, whereas Mahindra and Mahindra, Reliance, Bharti Airtel, TCS, HCL Tech, and Sun Pharma closed in the negative zone.
Meanwhile, 27 stocks advanced and 23 declined within the Nifty50. Among broader indices, the Nifty Midcap 100 and Nifty Smallcap 100 ended lower, while Nifty 100 saw a surge.
Most sectoral indices concluded positively, with Nifty Finance Services climbing 0.68 percent, Nifty Bank increasing by 0.54 percent, and Nifty IT up by 0.30 percent.
Rupak De from LKP Securities noted that the index rose following a consolidation phase on the hourly chart, which has improved sentiment among bulls.
“On the daily chart, Nifty formed a green candle after a hammer and doji pattern. This setup frequently suggests a potential upward movement. Support is established at 25,400, with resistance seen at 25,600 and 25,750–25,800,” he remarked.
The rupee performed well, appreciating by 0.20 rupees or 0.23 percent to close at 85.65. The currency benefitted from softer crude prices and reduced selling pressure from foreign institutional investors.
Analysts predict the rupee will likely remain stable within a range of 85.25 to 86.00 in the upcoming period.
Point of View
It is essential to highlight the cautious yet optimistic sentiment in the Indian stock market. The potential India-US trade deal could provide much-needed momentum for the market. However, the lack of formal confirmation should prompt investors to remain vigilant. Our commitment is to keep the public informed with unbiased and authoritative insights.
NationPress
19/07/2025
Frequently Asked Questions
What caused the positive movement in the Indian stock market?
The Indian stock market experienced a positive movement due to cautious optimism surrounding the anticipated India-US trade deal and favorable movements in key indices.
How did the Sensex and Nifty perform?
The Sensex closed at 83,712.51, up 270.01 points, while the Nifty settled at 25,522.50, reflecting gains of 0.32% and 0.24%, respectively.
What impact did the US tariffs have on investor sentiment?
The US decision to extend the deadline for implementing tariffs led investors to adopt a more defensive approach, contributing to the cautious market sentiment.
What are the predictions for the rupee's performance?
Analysts expect the rupee to remain stable within a range of 85.25 to 86.00 in the near term.
Which sectors showed positive performance?
Most sectoral indices, including Nifty Finance Services, Nifty Bank, and Nifty IT, closed in the green, indicating positive performance.
