Will the Sensex and Nifty Move Amid India-US Trade Deal Talks?
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Synopsis
The Indian equity markets have opened nearly flat, reflecting mixed signals from global markets. Investors are keenly awaiting updates on the India-US trade deal, which could significantly impact market movement. Key sectors and stocks are experiencing varied performance, making this a crucial time for traders. Stay tuned for insights on market strategies.
Key Takeaways
- Sensex down by 50 points at 81,714.
- Nifty down by 17 points at 24,951.
- Focus on India-US trade talks for market direction.
- FIIs net buyers, indicating potential market support.
- Investment strategies should be cautious in volatile conditions.
Mumbai, July 21 (NationPress) The Indian equity markets opened nearly unchanged on Monday, influenced by a mix of signals from international markets, as investors remain hopeful for reassuring news regarding the interim India-US trade agreement.
At 9:20 am, the Sensex dropped by 50 points or 0.05 percent, settling at 81,714, while the Nifty fell by 17 points or 0.07 percent to 24,951.
Some selling pressure was also evident in midcap and smallcap stocks, with the Nifty midcap 100 index declining by 87 points or 0.15 percent to 59,017 and the Nifty smallcap 100 index down by 65 points or 0.36 percent at 18,892.
Analysts suggest that the primary focus for the market in the upcoming days will be the results of the trade discussions between the US and India.
“A favorable interim trade agreement between the two nations, featuring a tariff rate under 20 percent for India, would be viewed positively by the market,” stated Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd.
Sector-wise, stocks in the auto, IT, PSU banks, pharma, FMCG, media, energy, infrastructure, consumption, and PSE categories faced notable losses, while financial services, metals, and real estate sectors exhibited gains.
In the Sensex roster, Axis Bank, Reliance, Infosys, HCL Tech, Tech Mahindra, TCS, Sun Pharma, Titan, M&M, HUL, Asian Paints, NTPC, Tata Motors, and BEL were among the losers. Conversely, Tata Steel, HDFC Bank, ICICI Bank, Eternal, UltraTech Cement, Bajaj Finance, and Trent were significant gainers.
Most Asian markets were trading positively, with Shanghai, Hong Kong, Seoul, Bangkok, and Jakarta showing gains, while Tokyo was in the negative zone. In the US, markets ended on a mixed note, with the Dow Jones declining by 0.32 percent and the Nasdaq rising by 0.05 percent.
On the institutional front, foreign institutional investors (FIIs) were net purchasers on July 18, acquiring shares worth ₹374.74 crore, while domestic institutional investors (DIIs) continued their buying spree for the tenth consecutive session, with net purchases totaling ₹2,103.51 crore.
Given the current state of heightened volatility and mixed global signals, traders are advised to adopt a cautious sell-on-rise strategy, particularly when leveraging, according to Mandar Bhojane from Choice Equity Broking Private Limited.
Point of View
It's imperative to note the significance of the ongoing trade negotiations between India and the US. The outcome could shape market trends and investor sentiments, underscoring the importance of remaining informed and prepared. Our commitment is to provide timely updates that reflect the interests of our readers and stakeholders.
NationPress
21/07/2025
Frequently Asked Questions
What is the current status of the Sensex?
The Sensex is currently down by 50 points or 0.05 percent, standing at 81,714.
Why are investors focused on the India-US trade deal?
Investors are hoping for a positive interim trade agreement that could lower tariffs and boost market confidence.
What sectors are currently performing well?
Financial services, metals, and real estate sectors are showing gains, while other sectors like auto and IT are underperforming.
How did foreign institutional investors behave recently?
FIIs were net buyers on July 18, acquiring shares worth ₹374.74 crore.
What strategy should traders adopt in the current market?
Traders are advised to maintain a cautious sell-on-rise strategy, especially when using leverage.
