Will the Indian Stock Market Maintain Its Upward Trend Amid Hopes of a US-India Trade Deal?
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Synopsis
As the Indian stock market stabilizes and ends positively, investors are keenly observing developments around the India-US trade deal. The session showed significant gains in IT and banking sectors, reflecting a cautious yet optimistic sentiment among traders.
Key Takeaways
- Indian stock market ends positively amidst value buying.
- Sensex rebounds to 83,432.89 after dropping to 83,015.
- Nifty closes at 25,461, reflecting a cautious optimism.
- Major gains seen in IT and banking sectors.
- Investors are focusing on India-US trade talks.
Mumbai, July 4 (NationPress) Following a period of significant fluctuations, the Indian stock market concluded the day positively on Friday, driven by value buying in the IT and banking sectors as discussions advanced regarding the interim India-US trade agreement.
After hitting an intra-day low of 83,015, the Sensex rebounded to finish at 83,432.89, increasing by 193.42 points or 0.23 percent compared to the previous close of 83,239.47. The Nifty also rose by 0.22 percent, or 55.70 points, closing at 25,461.
Vinod Nair, Head of Research at Geojit Investments Limited, stated, "The Indian market is currently in a pause, with investors taking a wait-and-see approach ahead of the looming US tariff deadline, influenced by mixed global signals."
Both benchmark indices displayed volatility amid a cautious investor sentiment leading up to the US tariff deadline.
Within the Sensex, stocks such as Bajaj Finance, Infosys, Hindustan Unilever, HCL, Ultratech Cement, Bajaj Finserv, and TCS ended positively. Conversely, Sun Pharma, ITC, Tata Motors, Asian Paints, Mahindra and Mahindra, and Maruti Suzuki concluded in negative territory.
From the Nifty index, 31 stocks rose while 19 fell.
Among broader indices, Nifty IT (0.80), Bank Nifty (0.42 percent), and Nifty Fin Service (0.49 percent) recorded respectable gains, while Nifty midcap 100 and Nifty smallcap 100 remained unchanged.
Analysts noted that the markets remained volatile yet again, ultimately finishing on a flat note.
Ajit Mishra, SVP of Research at Religare Broking Ltd, commented, "The initial half exhibited a negative trend; however, a significant recovery in heavyweight stocks mitigated the losses as the day progressed, allowing the index to close near the day's high at 25,461."
Market experts indicated that ongoing FII outflows reflect a risk-off mentality, while DII inflows provide some support.
Following the recent surge, major indices are trading near peak valuation levels, restricting further upside, which largely hinges on Q1 earnings and specifics of the trade deal.
In the mid- and small-cap sectors, the market has become increasingly stock-specific following the recent recovery, according to Nair.
Point of View
It is crucial to acknowledge the resilience shown by the Indian stock market amidst global uncertainties. The cautious optimism surrounding the India-US trade discussions offers a glimmer of hope for investors, indicating that the market's trajectory is closely linked to diplomatic developments.
NationPress
22/07/2025
Frequently Asked Questions
What caused the Indian stock market to end positively today?
The Indian stock market ended positively due to value buying in IT and banking stocks as discussions progressed on the interim India-US trade deal.
What are the latest figures for Sensex and Nifty?
The Sensex closed at 83,432.89, up by 193.42 points, while the Nifty finished at 25,461, a rise of 55.70 points.
How did global cues impact the Indian market?
Mixed global cues contributed to the volatility observed in the Indian market, leading to a cautious approach by investors ahead of the US tariff deadline.
